Statute Barred

fattaximan

I have been contacted by Cabot Financial regarding a credit card debt with Sainsbury's bank. My question is this i disputed this debt on the grounds it's statute barred, because it's been over 7 years since i had any contact with anyone over this account. I sent them a letter stating these facts. I have just received a letter back saying that Sainsbury's Bank issued a default notice on this account on the 14/04/2004. I never received any notice or letter informing me of this, and they say this is the date that it runs from meaning the statute runs out in just over 2 months. Please can anyone confirm if this is correct or not, or if i don't offer to repay this outstanding amount before the 14/04/2010 will it then become statute barred? Any information would be great, many thanks.

Tixy

They are fibbing (to put it nicely), the default placed on the account is an 'action' by them. The relevant date for statute barred is the date of your last 'action', basically the last time you paid or wrote acknowledging the debt. Chances are if the default was 14/04 then you probably last paid a few months before that, so could well already be statute barred.

You could get clarification of this from national debtline if you want. They have said the same to others before.

DarkConvict

As above, statute barred is when you have not paid or acknowledged the debt in writing for 6 years. Once statute barred, always statute barred. Based on what you have said, your debt is statute barred, and for them failing to recognise this i would kindly reply stating that you have reported them to the Office of Fair trading ( link ) as for someone in their position they should be aware that a default does not count against it not been statute barred, as such they may need to consider reviewing their license to practice.

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

Statute barred debt
2.13 This guidance applies to the pursuit of debt regardless of its age. We will be
carrying out further work on this aspect of debt recovery including analysis of
relevant legislation and practice throughout the UK.
2.14 In the past we have dealt with a number of statute barred debt cases governed by
the Limitation Act 1980, which applies to England and Wales. Based on that
experience our position with regard to England and Wales remains:
a. we accept legally the debt exists
b. it is the methods by which the debt is collected that can be
unfair as follows:
• it is unfair to pursue the debt if the debtor has heard nothing from
the creditor during the relevant limitation period
• if a creditor has been in regular contact with a debtor before the debt
is statute barred, then we do not consider it unfair to continue to
attempt to recover the debt
• it is unfair to mislead debtors as to their rights and obligations, for
example, falsely stating or implying that the debt is still legally
recoverable and relying on consumers not knowing the relevant legal
provisions, and
• 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 contrary to section 40 (1) of the Administration of
Justice Act 1970.

Further more Trading Standards and the Financial Ombudsman have been notified of this given their position as a debt collector.

Sorry im been sarcastic in the letter advice, but its true!

As to the default, it must be placed within 6 months of you actually defaulting, also you must have received a letter telling you about it for it to be lawfully applied to your credit file.

Tixy

DarkConvict wrote: »

as such they may need to consider reviewing their license to practice.

:rotfl::rotfl::T

DarkConvict

Tixy wrote: »

:rotfl::rotfl::T

Glad you liked it.

GeorgeUK

If it has been over 7 years since you have ahd contact with anyone for this account, then the default date may be incorrect. This is supposed to be the date of the actual default (when you stopped paying), which is usually what is entered but can be up to 6 months from this date.

The statute barred time starts from the last time you made payment or acknowledged the debt in writing.
(Guess who forgot to press refresh before posting )