Hi

Can anyone advise - over the last 4 years I have managed to pay off a great deal of my debt which I had after my marriage break up.

I have received a letter today from a creditor chasing payment that is over 7 years old, I thought I had read somewhere that if the debt was over 6 years it couldn't be pursued?

Thanks

Hi --- You would have read about "statute barred" debts under the limitations act 1980, certain unsecured debt where there has been no contact for Six years cannot be legally enforced, it's important you do not acknowledge or pay towards the debt as you start the clock ticking again.

Read the article from UK insolvency helpline detailing what to do and how to go about it, there are also sample letters to send.

http://www.insolvencyhelpline.co.uk/debt_factsheets/liability_for_debts

_and_the_limitation_act.htm#1

Thanks thats really helpful. Also and I don't know if this makes a difference but they are writing to me in my previous married name which I haven't used for 6 years.

Hi -- No difference, the main conditions are that the debt has not been acknowledged or payments not been made in the last Six years, read that artice and send a letter recorded delivery, along the lines of the sample letters.. saying you now consider the debt, "statute barred", they won't like it, but there is no legal way they can then enforce it.

Conmankiller,

I never seem to be able to find out once statute barred debt falls of CRF can it be out back on?

Sorry to but into another post but I dont seem to be able to start new one!

Thanks

Hi, No problem --- Once the default has become time expired which is Six years from the default date, they are not allowed to re-apply a new default for the same debt that has become statute barred, if they do you have the right to complain of unfair treatment to the OFT as in the same manner below.

The Office of Fair Trading (OFT) has issued Debt Collection guidance which looks at whether a debt is being collected fairly. They say:

It is unfair to pursue the debt if you have heard nothing from the creditor for 6 years.

The OFT thinks it is fair to keep trying to recover the debt if the creditor has been in regular contact with you during this time.

It is unfair to mislead you be saying the debt is still legally recoverable when it isn’t.

It is unfair to keep pressing for payment after you have told them you won’t be paying the debt because it is statute barred.

If this happening then you can complain to your local Trading Standards Department in the council. They can take up your case for you. You can also complain to the OFT. Their address is at the end of the factsheet. The OFT does not usually take up individual cases but their Debt Collection Licensing Enforcement Team collects information that can be used to take action against problem creditors, who can even lose their Consumer Credit licence.

Hi wondered if you can help, we received a letter about a month ago from a debt collecting agency for an amount of £2000 stating it was from a finance company, of course we queried it and i sent a letter asking for the copy of the agreement and statement of account we didi not acknowledge the debt at any time.

They sent a copy of the agreement which was dated Jan 01, hubby does not remember making any payments ti this loan as just after this date he suffered servere depression and was hospitialised, they did not send a copy of the statement of account so i asked for this and was sent a copy well it looked just like a normal piece of paper no heading etc it states from 08.03 the amount was £xxx and up to date is still the same amount, what i do not understand is that they have put from 08.03 but the agreement was signed 23.01.01 so what has happened to the last 2 years???

I really dont know what to do next someone advised that the credit agreement had mistakes in it as they calculated the interest wrong and so they can be told the agreement is flawed with many mistakes and so is enforceable or is it status barred there is nothing on husbands credit report about this so what should we do?

I dread baliffs turning up someone did suggest that the 2 year gap maybe where the debt had been sold on???

Please can you advise me

Hi --- If you're both sure that nothing whatsoever has been paid towards this old debt in the last Six years then write to the agency in the same manner recorded delivery stating you now consider the debt "statute barred" under the limitations act 1980. (use the link above, there is a template letter ).

The onus is on the agency to then prove that you have indeed paid anything if they consider your circumstances don't qualify,...... they would have to furnish the proof to the contrary that you had in fact paid anything within the last Six years, if they cannot then it qualifies as "timed out" and unrecoverable.

Sounds like they may be misleadingly hoping to give you the wrong impression that something was paid on or around 08.2003 (naughty naughty...tut ..tut !!) but they would have to prove that, otherwise the debt has become, "statute barred".

Don't worry about bailiffs at this stage, the debt collection agency have to prove this debt is enforceable by law first of all and get judgements, before any other action can be directed against you.

Thanks i will send the letter recorded delivery can you tell me how we would find out if a CCJ has been issued in the last 6 years?

There is nothing on the credit report surely this would show wouldnt it?

Hi -- Indeed if a CCJ had already been obtained, it would certainly show on your credit records. !!

Hi have now received a letter of offer??? They say pay now and save 65% of the debt does this sound dodgy or whar surely if you paid that they would say ok now you can pay the rest as you have made a payment to us?

Hi --- Here is where you need to exercise caution !...... If you're sure that nothing has been paid within the last Six years then send your statute barred letter by recorded delivery.

It's a lot better having nothing to re-pay compared to 35% of the old debt, then risking being stung for the balance of 65% which is what they could do.... as you would have re-started the Six year clock again, unless they were to give their prior written agreement that the 35% payment was indeed full & final settlement.

The fact that they have offered to reduce the debt so easily by so much would indicate that they know full well this debt is over Six year old and qualifies, or they wouldn't be prepared to reduce it so easily.

I would press ahead regardless and send in the statute barred letter as per your legal rights under the limitations act 1980 and see what happens, if they say payment has been made then they have to furnish sufficient proof, which I doubt they have. !

Suggested letter below.

Your Name:
Your Address:
Date

To:

WITHOUT PREJUDICE

Dear Sir/Madam

Account No:

You have contacted me/us regarding the account with the above reference number, which you claim is owed by myself/ourselves.

I/we would point out that under the Limitation Act 1980 Section 5 "an action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued".

I/we would also point out that the OFT say under their Debt Collection Guidance on statute barred debt that "it is unfair to pursue the debt if the debtor has heard nothing from the creditor during the relevant limitation period".

The last correspondence/payment/acknowledgement or payment of this debt was made over six years ago and no further acknowledgement or payment has been made since that time. Unless you can provide evidence of payment or written contact from me/us in the relevant period under Section 5 of the Limitation Act, I/we suggest that you are no longer able to take any court action against me/us to recover the alleged amount claimed.

The OFT Debt Collection Guidance states further that "continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statue barred could amount to harassment contrary to section 40 (1) of the Administration of Justice Act 1970".

I/we await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.

I/we look forward to your reply.

Yours faithfully

(Your signature)

REMEMBER
KEEP A COPY OF ALL LETTERS YOU SEND TO YOUR CREDITORS