Thanks Huckster, have written debt agency a letter in dispute of claim. Sorry you feel that way Brian, but if you are ever in my situation and struggling to make a living and you have a ruthless debt agency demanding the full amount, when I don't have the funds to pay it, then you can have an un-bias comment. I want to pay the debt back, but pay back at a reasonable amount that I can afford, and the statute barred period will allow me to offer the creditor a realistic payment plan without the threat of CCJ's.

It seems that people at the low income level, like my self are pursued harder for going into debt, while the people at the top, like the bankers are bailed-out with our tax payers money.

Hi

Sorry but I am ducking out of this thread now

There seems to be something perverse about you in that you dont have any moral responsibility or the integrity to be responsible for this debt that you have incurred.

It's OK to use the statute barred rule if the creditor has done nothing about the debt for 6 years but you seem to be looking for a loophole to dodge your responsibility and basically that stinks.

CCJ here it comes!!!

Bye

This is the DWP manual on over payments. If you search the document for limitations, it appears to be quite revealing. i.e the guide suggests that they might only take court action, if they have proof of the overpayment that they could present to a court.

http://www.dwp.gov.uk/docs/op-guide-amd2.pdf7

If this is the case, I would suggest that you send the debt company a simple letter saying that you have no idea what they have written to you about and that you would request proof that any alleged amount is owed. Without such proof you would consider the matter to be in dispute.

Then see what they come up with.

This info below found online might answer your question. Perhaps they are seeing whether they can make a recovery before April, before they go down the route of trying to reclaim from any benefits you may be receiving.

"The Department of Work & Pensions (DWP) has 6 years to take action through the courts to recover benefit overpayments and social fund loans. This time starts running from the date of the final decision made on the overpayment and from when the social fund loan was due to be paid. But the DWP are still allowed to make deductions from your benefit for a debt over 6 years old as they don’t need to go to court to do this. This applies to overpayments of benefits such as income support, job seekers allowance, pension credit, housing benefit, council tax benefit and paying back social fund loans. " ( source Bankrupcy-insolvency.co.uk)

Hello

I am getting some conflicting advice, first, I have made no payment, or promised to pay or made any acknowledgment of debt, and the creditor has not gone through the courts. However, the creditor has finally passed the debt onto a debt agency who are pushing for payment, and I don't want them to use a CCJ as it will cancel out a potential 6 year 'statute barred'.

What I need to know from someone with experience with the law, is whether this case qualifies for statute barred, even though I've ignored their letters?
Secondly, can I delay the debt agency from taking this to the courts until April, when the 6 year period applies? Would disputing the debt buy me some time? And is there a template letter to use? thanks

Brian - You have posted the IHTM (Inheritance tax manual) which is a guide for the revenue or accountants when calculating deductions for IHT purposes, this is only concerned with the effect of statute barred debt on inheritance tax. It clearly refers to your personal representative (executor) and should be read in conjunction with its leading article IHTM 28383 below.

http://www.hmrc.gov.uk/manuals/ihtmanual/ihtm28383.htm

That is nowhere near a comprehensive or authoratative guide on the limitations act 1980 or what determines whether a debt qualifies as statute barred or not.

Most unsecured debt either has to have had : 1) No payment made within Six years. 2) No promise to pay and no acknowledgement made and finally 3) No county court judgement must have been granted within that time.

Should a debtor comply with the first two conditions and ignore repeated collection attempts, then the creditor should apply for a county court judgement to keep open and extend the normal Six year limitation period...if not, the statute barred exemption could apply.

HI

I work for a debt counselling company and as I said just ignoring the debt doesnt make it go away. They will chase you for it as you have presented no evidence that it is not a valid debt. If it was say for the purchase of an item of furniture on a credit agreement and the company had passed the debt onto to collections agency and the collections agency had done nothing about it for 6 years then the statue barred limitation may well apply

Have a Read of this article

"If the lender allows time" - in other words if he does nothing for 6 years then you can claim statue barred but clearly the debtor is doing somehting by chasing you

IHTM28384 - Law relating to debts: statute-barred debts

If a lender allows time to pass without receiving any payment an action for recovery may become barred.

Under the Limitations Act 1980 the time limits are

• in simple contracts, 6 years
• in contracts under seal, 12 years.

If the debtor acknowledges the debt in writing or makes a part payment within the original limitation period, then the time limits start to run again from the date of acknowledgement or the date of payment.

Even though the lender may be barred from pursuing recovery, a debtor may decide to pay the debt after the expiry of the time limits. Because of this you should allow a debt which is otherwise statute-barred if the personal representatives pay the debt and you receive evidence that the payment has been made.

These instructions do not apply to debts in Scotland. Under Scottish law, if a lender allows time to pass without receiving any payment an action for recovery may become barred under the Prescription and Limitation (Scotland) Act 1973. (For details of this Act see Gloag and Henderson 12th edition at Chapter4.). These debts are completely extinguished and cannot be enforced. Once the prescriptive period expires the debt cannot be allowed as a deduction.

I thought 6 year statute barred did apply, but they could still recover the debt from future benefits, however it would not go through the courts. Still need clarification of 'acknowledgment of debt'? If I don't have contact with the creditor within the 6 year period and ignore the couple of letters demanding the payment within that period, then it is no longer a case for 'Statute barred'?

Don't think that debts owed to local councils are covered by the 6 year statute of limitations legislation.

You can of course dispute owing the money and ask for proof by sending a letter by recorded delivery to them. That would not be acknowledging the debt by doing this and you can then evidence that you have disputed should they try to take this further.

I would expect the debt recovery agency to provide proof of the debt and you would then have to ask them for their complaints process to see how you can take this further. You might be able to appeal in some way to the council concerned.

I would suggest that you contact your local citizens advice or national debtline to ask them about this and I am sure they will tell you that the 6 year statute barred period does not apply.

Just becasue you are not acknoledging the debt does not qualify it fo rstatue barred. You have not got to have been contacted by the company for 6 years

Need some help please.
I have a debt that is coming up to 6 years, and I have not acknowledged or paid any money on the debt. The debt is from the local council for housing over payment, and eventually the council has passed the debt onto a debt recovery agency. The debt period covers Jan 2006-Apr 2006, and the agency is threatening to take further action. What can I do to delay this action until April, when the 6 year statute barred comes into play? If for example I dispute the debt, and send them a letter to delay process, will that count as acknowledgment of the debt? What can I do to delay the process? thanks