Time barred debts

laudo

I have Cabot chaasing a debt pre 2001, I understand that this is time barred as I have not acknowleged the debt or made a payment since then (in the bad old days)

Cabot have been in touch recently and I have been advised that this is time barred, as it's over 6 years ago (in fact over 5 years as I am in Scotland).

Now my question is do I have to reply and tell them this, or can I just ignore the letters? If i do reply do I also point out any more letters is harrasment - and then report them?

Anyone please.

fermi

Probably best to tell them. That way they will know you are aware of the law.

There is a factsheet here:

Link: Factsheet | Liability for debts & the Prescription & Limitation (Scotland) Act 1973

And a letter here:

Your address
Date

The Loan Company
Company House,
Church Street,
Newtown,
Kent,
R1 7HG

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

Dear Sir/Madam

Ref: xxxxxxxxxxx

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 Prescription and Limitation (Scotland) Act 1973 Part 1 Prescription Section 6:

"If after an appropriate date, an obligation (an appropriate debt) has subsided for a continuous period of five years:

(a) without any relevant claim having been made in relation to the obligation, and
(b) without the subsistence of the obligation having been relevantly acknowledged;

then as from the expiration of that period the obligation shall be extinguished..."

I/we would also point out that the Office of Fair Trading (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 written acknowledgement/payment of this debt was made over five 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 Part 1 Section 6 of the above 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 statute barred could amount to harassment".

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






Mrs A N Other

laudo

Cheers, I take it that's the last I will hear from them then?

fermi

laudo wrote: »

Cheers, I take it that's the last I will hear from them then?

Not neccessarily. :rolleyes:

- Some DCAs continue to send a few letters saying that you have a "moral obligation" to pay.
- Some ignore the letter and continue to make threats. If they do then report them.
- It's also possible that they may sell the debt on to another DCA meaning that you may start getting letters from them.

If the debt is genuinely time barred than all that only has nuisance value, since they know that the debt being barred is a full defence to any legal action they could take.

laudo

Cheers again.

Do you have to write or can e-mail them?

fermi

It's best to write, sending the letter by recorded delivery.;)