Help regardingstatute barred debt scotland

Amistoso_2

Hi I'll try and keep this as short as possible

My little sister (I say little but she's 32!!)
had a credit card with Barclaycard years ago, she hadn't made any payments on the account for just over 5 years (was trying to make an arrangement to pay with lack of communication from their side, debt was left untouched from this point on) Credit solutions/Power2contact have been chasing her for the debt for a few months now, she gave them my address as a contact address for mail but does not live with me, she is no fixed address at the moment and is not in employment nor claiming benefits.
So want to try and clarify a few points, they are threatening her with a CCj and arresting her wages (she doesn't have any so I guess they can't take that route) I'm assuming that as she has not acknowledged the debt for over 5 years that this will definately be statute barred (scottish law) and they can't enforce the debt now? Am also worried that as she has her mail sent here and they have phoned here looking for her a few times that they may turn up here with bayliffs or something or that my address may get blacklisted???!!! What steps should now be taken to resolve the issue?
my hubby would go mad if he knew she was using my address but I was just trying to help her out.
Any advice would be much appreciated as I'm worried sick every time the door goes!!!

fermi

If it has been over 5 years since she last paid or acknowleged this debt herself in writing then you are correct, and it would be statute barred and legally unenforceable.

Back in a sec with a link to info and a letter to send.

fermi

Statute Barred debts.

A debt will be "Statute Barred" if there has been no acknowledgement of the debt by you making a payment or in writing within the relevant limitation period.

If you are in Scotland then the limitation period is 5 years and you should read:

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

If you feel the debt is "Statute Barred", then there is a letter to write.

Scotland.

1 High Street,
Newtown,
Kent
R21 4RH
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 6of the above Act, I/we suggest that you are no longer able to take anycourt 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

ILW

If she informed them recently to use the OPs address for any correspondance, could that be considered as acknowledging the debt?

fermi

Amistoso wrote: »

Am also worried that as she has her mail sent here and they have phoned here looking for her a few times that they may turn up here with bayliffs or something or that my address may get blacklisted???!!!

Bailiffs can't be used until they have a court order that you don't pay. Since this debt is statute barred, that just isn't going to happen.

Addresses are not blacklisted any more. Unless you hold a joint account/loan etc with someone, then other people's debt will not effect your record. Even if they are listed at your address.

Amistoso_2

ILW wrote: »

If she informed them recently to use the OPs address for any correspondance, could that be considered as acknowledging the debt?

Hi folks, thanks so much for the prompt responses, she gave my address so they could write to her and inform her that the matter had been dealt with and now closed, she has never written to them just spoken on the phone.
I'm hoping she is telling me the whole truth (don't see why she would have a reason to lie) but if not what's the worst case sinario regarding bayliffs etc at my address, I'm very worried this may happen I'd be mortified!! and my other half would be seriously angry at my sister...

Amistoso_2

fermi wrote: »

Statute Barred debts.

A debt will be "Statute Barred" if there has been no acknowledgement of the debt by you making a payment or in writing within the relevant limitation period.

If you are in Scotland then the limitation period is 5 years and you should read:

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

If you feel the debt is "Statute Barred", then there is a letter to write.

Scotland.

Thanks so much for this, I'll make sure she prints this off and gets it in the post ASAP

Amistoso_2

not sure if this is relevant or not but she has told me the debt/account was showing on her Experian credit score, since she spoke with them a few months ago this account has now dissapeared from her file altogether, what does this mean? have Baclaycard removed it as it is no longer a debt or does it just dissapear after a certain amount of time has passed? confused!!!

fermi

Amistoso wrote: »

not sure if this is relevant or not but she has told me the debt/account was showing on her Experian credit score, since she spoke with them a few months ago this account has now dissapeared from her file altogether, what does this mean? have Baclaycard removed it as it is no longer a debt or does it just dissapear after a certain amount of time has passed? confused!!!

Accounts remain on a credit report for 6 years from when they were first defaulted, then they are removed.

They will also sometimes disappear is the debt has been sold on. In such cases the buyer is entitled to take over the record, but sometimes it doesn't happen immediately (or at all) and it can disappear.

Regardless of whether the debt is sold or not, any entry on the files should be removed 6 years after the original default.

GeorgeUK

Can i throw a spanner in the works here?

Has your sister ever lived in England and was the debt taken out while she was there? Just trying to find out if it is governed by Scots law or English law.

The reason i ask is becuse you mentioned a CCJ was threatened. This may just be because the DCA doesn't have a clue, but CCJ's are from English courts - it would be a Decree for a Scottish one.

fermi

If they wanted to take it to court, then they would have to take it through the Scottish legal system. Assuming that you/her are currently living in Scotland.

That would mean that the Scottish rules on limitation apply.

You can't serve papers on someone at a Scottish address through the English courts. Has to be done via the jurisdiction where someone is resident.

So if you can tell us whether both you and her are resident in Scotland or England that will help.