is my debt definately statute barred?

the_pazza

hi, i'm looking for some more advice..
a few months back i started getting letters from a DCA about a debt from 2002, it was for car finance which ended in the car getting taken back early in 2003 but i had no contact or made any payments from the august 2002.
i took advice on here and printed off a statute barred letter and posted it of to them, a week or so later i got one back saying the debt wasn't statute barred as my account wasn't cancelled until the july 2003.
i asked on here again and was told this wasn't the case, it was 6 yrs from the last payment made or written aknowledgement of the debt from myself so i wrote back a similar letter template which said that it was also a letter of complaint.
they wrote back today saying;

as you pointed out the limitation act 1980, section 5 states that 'an action founded on simple contract shall not be brought after the expiration of 6 yrs from the date on which the cause of action occured'.We would like to point out that the termination of your account is a cause of action and as your account was terminated on the 28th july 2002 (i think they meant 2003 there?) your account is not currently statute barred

in law a debt cannot be enforced after 6 yrs from the date in which it became due, which in your case was the date in which your agreement was terminated.

sorry it went on a bit but i thought it best to write some of what they said.
can anyone tell me if this is right?
many thanks for your time.
Mark

rog2

the_pazza wrote: »

i asked on here again and was told this wasn't the case, it was 6 yrs from the last payment made or written aknowledgement of the debt from myself so i wrote back a similar letter template which said that it was also a letter of complaint.
they wrote back today saying;

as you pointed out the limitation act 1980, section 5 states that 'an action founded on simple contract shall not be brought after the expiration of 6 yrs from the date on which the cause of action occured'.We would like to point out that the termination of your account is a cause of action and as your account was terminated on the 28th july 2002 (i think they meant 2003 there?) your account is not currently statute barred

in law a debt cannot be enforced after 6 yrs from the date in which it became due, which in your case was the date in which your agreement was terminated.

sorry it went on a bit but i thought it best to write some of what they said.
can anyone tell me if this is right?
many thanks for your time.
Mark

Hi Mark - I think it was me who advised you that the 'debt' was 'Statute Barred'. I stand by that advice.

The account 'termination' was an 'action' made by the Finance Company - not you.

I don't know where they get that bit about 'a debt can not be enforced after 6 years from the date in which it became due'

Sounds like a load of bilge to me - a 'debt' can not be enforced, through the Courts, once a 'Limitation Period' of six years has passed from either - the date that you last made a payment towards it, or the date that you last acknowledged the debt, in writing.

The only exception to this is in the case of 'Property Related Debt' where the Limitation Period is 12 years, although the Council of Mortgage Lenders have agreed to respect the 6 year 'Limitation Period' with the proviso that 'action' by them - such as letters to the debtor - will count as 'acknowledgement.

For normal consumer debt, including car finance, it does not matter what the lender does (other than obtaining a CCJ against you) - unless you have made any payments towards, or written acknowledgement of, the debt for a period of six years, the 'debt' is Statute Barred and unenforceable trough the Courts.

Even if the original creditor had obtained a County Court Judgement against you, he would, as it has not been enforced for six years, need to ask the permission of the Court in order to 'enforce' it, and would have to give the Court a pretty good reason as to why it had not been enforced.

This DCA is talking absolute rubbish - the OFT Debt Collection Guidelines, to which this DCA should be adhering like glue, clearly state that it is unfair practice to 'mislead' debtors over their rights and that, once they have been told, by the debtor, that the debtor will not be making any further payments as the debt is statute barred (as it is in your case) then that DCA should cease all attempts at collection.

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

It is, also, worth mentioning that several DCAs have had their knuckles rapped, by the OFT, recently - due to their bad handling of disputed debts, including 'Statute Barred' debts:

http://forums.moneysavingexpert.com/showthread.html?t=1639473

Should you require any further confirmation, please feel free to ring National Debtline - 0808 808 4000 or Community Legal Advice - 0845 345 4 345.

For an overview on your liability for debts and the Limitation Act:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

Which DCA is pursuing you?

the_pazza

hi Rog (again)
once more thanks for your reply.
do you have any advice or suggestions on what to do next?
Mark

the_pazza

sorry i meant to say it is marlin financial services ltd.

rog2

the_pazza wrote: »

sorry i meant to say it is marlin financial services ltd.

That says it all Mark - you must report them to Trading Standards and the OFT. The OFT address is on the link that I gave you.

the_pazza

I take it Marlin Financial Services have got a bad reputation then?
they have also been putting defaults on my account since jan this year.. is that allowed?
my credit rating has gone rubbish now because of this!
thanks, Mark

RAS

They have a reputation. And you definately need to talk to the OFT as they have put at least one DCa into "special measures" for chasing staute barred debts. They will be even less amused by the decision to keep default a statute barred debt.

the_pazza

thanks a lot for that, i'll ring them tomorrow.. should i just ignore the phone calls and any more letters they send for now then?
Mark

jewell32

hi all, somebody help me pleaseeeee

i had a SCOTTCALL debt collecter arrive on my doorstep last july asking me to payback an overdraft i had with barclays bank 9 or more years ago, the debt has in total is £445.55, i'm sure it was only a £150 overdraft, i was in shock as i always thought debts would be "written off " after 7 yrs, as i'm now on benefits with 2 small children the debtcollecter said i could pay £5 a week or go to court!!! i couldnt believe it, so anyway i've been paying the £5 a week, i still have £215.53 left to pay, today i was looking up debt collecters and stumbled on the statute barred debt info, i'm gutted, can somebody please tell me if i now have to continue to pay scottcall, i only wish i would have looked this up earlier.... any help would be much appreciated as she will be knocking my door on friday!!!
thanks

RAS

jewell

Tell the plonker to get lost.

Do you have a postal address for them? If so, send the statute barred letter registered post and keep a copy to hand this person on Friday.

If they try and chase you after that, then report them to the OFT.

the_pazza

RAS wrote: »

They have a reputation. And you definately need to talk to the OFT as they have put at least one DCa into "special measures" for chasing staute barred debts. They will be even less amused by the decision to keep default a statute barred debt.

I've just noticed i've got a message on my home answering service from marlin from today asking me to call them.. i take it this is now close to harrassment by them?