Is this loan statute barred

Sweet_Potato · 23 January 2015 at 1:49PM

Hi all.

My wife have an old debt from a catalogue (Littlewoods), she can't remember exact dates but this was most probably 12 plus years ago. At one point she must have defaulted on it when she moved abroad for a while.

We have been together now for 9 years and we cant remember that there was any request for payment but about a year or so ago she received letters from Capquest demanding payment. She then set-up a payment plan of £15 per month. Still £842 outstanding.

We have now received a letter from Capquest that they are offering a "Reduced settlement" This letter came out of the blue and the offer is only valid for a limited period.

It also states on the letter that "Your credit file will be improved to show your account as satisfied with a partial settlement flag"

We looked on her Experian credit report and this dept is not listed on her report, no entry from either Littlewoods or Capquest.

I do believe that this ddebt is statute barred hence its not showing on her credit file. Is there anyway to check if the debt is statute barred? And what will be the way forward.

We have been getting our act together and are paying back all our debts and can save for our future so if we can get out of this debt it will be fantastic, especially as theres not a lot of love for Capquest in the way they deal with people.

Any help and advice will be greatly appreciated.

Also we are based in England...

Regards.

Marktheshark · 23 January 2015 at 1:52PM

She is paying for nothing if it is statute barred.
If iw is it can not be re-started, it will NOT improve any credit rating and she might as well chuck the £15 down the grate.
I would send a SAR plus £10 write on the cheque payment for SAR request and make this very clear in the letter.
Await all the info, work out dates and if it is statute barred you saved £15 a month.

Sweet_Potato · 23 January 2015 at 2:00PM

Thanks for the reply Mark.

Probably being stupid here but what is a SAR and who do I send it to?

jonesMUFCforever · 23 January 2015 at 9:03PM

......Surely by making the payments they have accepted the debt and would not be statute barred for another 6 years?

Thrugelmir · 23 January 2015 at 9:43PM

jonesMUFCforever wrote: »

......Surely by making the payments they have accepted the debt and would not be statute barred for another 6 years?

Payments made are an acknowledgement of the debt.

fermi · 23 January 2015 at 9:58PM

Sweet_Potato wrote: »

Hi all.

My wife have an old debt from a catalogue (Littlewoods), she can't remember exact dates but this was most probably 12 plus years ago. At one point she must have defaulted on it when she moved abroad for a while.

We have been together now for 9 years and we cant remember that there was any request for payment but about a year or so ago she received letters from Capquest demanding payment. She then set-up a payment plan of £15 per month. Still £842 outstanding.

It was statute barred before she started making payments then.

That means it STILL IS statute barred, as once barred no subsequent payment or acknowledgement 'unbars' it.

Letter here --> http://forums.moneysavingexpert.com/showpost.php?p=34906321&postcount=6

I do not acknowledge any debt to you or any other company or organisation that you claim to be representing.

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 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.”

< insert ONLY if required...

I note that you have claimed that a payment or acknowledgement made after the limitation period has expired means that a debt is no longer statute barred.

That appears to be a deliberate attempt to mislead and misrepresent the correct legal position, contrary to FCA Rules. I will be reporting this deceptive conduct and will bring it to the attention of the court if required.>

The Limitation Act 1980 clearly states:

"a right of action, once barred by this Act, shall not be revived by any subsequent acknowledgment or payment"

It is clear that there was a period of 6 years where no acknowledgement or payment of this debt was made.

<Give dates if you have them>

Consequently this debt is and remains statute barred under the Limitation Act 1980.

Unless you can provide evidence of payment or written acknowledgement 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.

I would also point out that in their Consumer Credit sourcebook, the Financial Conduct Authority states the following rules:

"...a firm must not attempt to recover a statute barred debt in England, Wales or Northern Ireland if the lender or owner has not been in contact with the customer during the limitation period." 7.15.4

"A firm must not continue to demand payment from a customer after the customer has stated that he will not be paying the debt because it is statute barred." 7.15.8

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

Is this loan statute barred

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