does a debt collection agency have legal grounds to chase a debt 15 years after repossession of item which had loan insurance on it. haven,t heard from anyone for more than 12years but recently received a letter demanding payment?
Has a payment been made, or the debt acknowledged as being owed, within the last six years? If not, it may be statute barred and the debt collector should not be making a demand for payment.
no payment made or communication with anyone for approx. 10years.don,t know how they even got our address,we have been in this town for 7years. what can we do ?
When contacted, tell them that you dispute liability for the debt. They will need to investigate its legitimacy. Once they find out it's statute barred, they can't state or imply that legal action can be taken (and can't take legal action).
If they persist, refer them to the ACCC/ASIC Debt Collection Guideline (available here: https://www.accc.gov.au/system/files/776_Debt collection guideline_July 2017_FA.PDF) Particularly:
- Part 13: If liability is disputed, especially (b) and (f); and
- Part 20: Representations about the legal status of a debt - including statute-barred debt.
If they still persist, make a complaint to the ACCC.