Hey need some advice
My cousin took out car finance circa 2000-2001, however he then became redundent and wasnt able to keep to his financial commitments. He had an outstanding debt of about £5000, which he could not afford to pay. This went on his credit record.
A couple of years later he needed to fix up his credit rating, so on advice from Experian he wrote to the finance company saying he was in debt to them for about £5000 that they now probably deemed as unrecoverable, and in exchange for marking the debt as settled on his credit record he would be willing to pay them half his debt, which is a lot more than they stood to gain as things stood. He didn't get a reply back from the company and so phoned them up. He spoke to an agent who basically said that also long as he paid half the debt off in a year making regular payments they would deem the debt as settled and add a note to his record to this effect. So he made monthly repayments and within a year he paid off a sum of about £2500 at which point he deemed the debt as settled as according with the verbal agreement he had made with the agent for the company he spoke to on the phone. His last payment was in November 2004.
Well last week he got a threating letter from a company who claim they have taken over the company he owed the original debt to and according to records he still owes the company half his original debt of £5000, and that if he doesn't clear up his debt as soon as possible they gonna take him to court and send bailiffs around etc etc.
It really is just out of the blue after 2 and a half years of no contact. Is this debt at all legally enforcable?
My cousin doesnt have any written confirmation of the agreement saying he could pay only half his debt, but has kept his payment receipts.
The new company seem to have genuinely taken over the old company.
Is there a time limit at which no contact between parties means a debt or contract is void?
Any help is appreciated. TIA