Statute barred debts and the Limitation Acts

charnodude

This thread has some great information and hopefully will be useful.

I do have a question though so i can make sure i send any letters at the right time.

My story in short....

In 2007 my ex wife and I consolidated all our debts and moved all of them in to my name so that i could go into an IVA and only one of us would be credit affected... so i thought.
2 months later my ex wife made me homeless and left me with all the debt. I contacted the IVA company to explain my situation and that i could not afford the monthly payment in full but could make a lower payment until my circumstances improved and i could return to making the full payment.
They refused this arrangement and told me to stop making payments and that i would go into default.
I asked them what would happen with the debt but i did not get an answer from them.

Fast forward to now and i've been told by a tenant at my previous address that a debt collection letter had arrived for me.

so my question is, when would the debt be statute barred, would it be 6 years from the last payments to the companies i owed money too (november 2007) or from the date the IVA company said i was in default (which i think was around april 2008)?

I've not acknowledged any of the debts or made any payments within that time frame.

fermi

Difficult, as the Limitation Act states that acknowledgement or payment by someone acting as your "agent" restarts the clock running. Arguably the IVA company were your agent, so it could run from the last time they paid creditors (if they ever did) or wrote to the companies with something that could be construed as administrating the debts.

Perhaps talk to the iVA company to see if they have records of what they did?

Saltburn75

Hi all. Need help.
I was in total dire straights many years back and took out a loan with Welcome Finance.
I did start paying them back for a time, but it lost my job and was basically on the seat of my pants for a very long time and could no longer repay the loan.
As a result, I moved house a couple of times and had not heard from welcome finance for some time.
In fact I'd heard that they had gone under a few years. However are back now?
Anyway, I stopped paying the loan back well over 6 years ago. (I recently checked my bank statements to confirm)
As time progressed I'd forgotten all about it.
Suddenly July of last year I started getting Chase letters from some 'dodgy' sounding debt collection company.
I also kept getting phone calls from them, Which I screened. I did not speak to anyone there and subsuqently rejected all calls.
I started to get concerned as they became very relentless with their letters.
I was concerned as I am starting to look for a mortgage and had only just got my credit file on track.

I took advice from this forum and sent the (template) letter regarding limitation acts and statute barred to this debt company and awaited reply.

What I got back was a snotty letter saying this loan is not statute barred and said I had last paid this loan just 'within' the six year term.
Which was a lie as I'd checked my statement and I had last paid them well over the six year term.
Then suddenly, almost immediately after I'd received their letter I get a CCJ on my credit file regarding this sum owed for welcome finance!!
I was so incensed as now I have next to no chance of getting a mortgage!
How can I rectify this? Also, it looks like the debt company - who obviously stuck the CCJ on my file- have passed the debt on to yet another company!
Any ideas on this one?
Can I get the courts to remove it??
All help appreciated.
Thanks.

fatbelly

They can't just 'stick a ccj on your file'. They have to start a court claim, which would involve you being sent a claim form, to which you could state your defence.

It sounds like they were writing to you at your present address but sent the claim to your old address. You did not reply (obviously) so they got a judgement in default.

Sharp practice if true.

You would need to establish the facts and apply for set aside.

Factsheet | How to set aside a judgment in the county court

graemo

I recently went down the statute barred route with a debt collection agency regarding a student loan, they wrote back claiming that under section 32 (1) I was still liable for the debt, as my not advising them of changes of address constituted "deliberate concealment" and affected their right of action.

It is my understanding that a right of action exists even if the creditor does not have a current address for the debtor, and evidently many ccj's occur which the debtor is unaware of. Are they trying it on?

graemo

BTW, any help would be really gratefully received. I thought about sending this letter:

Dear x

I was surprised to receive your letter as it appears to be inconsistent with the terms of the Limitation act. I will, however, on this occasion assume good faith, if not due dilligence.

You are quite correct in asserting that not maintaining a correct address with any supposed creditor would be a breach of contract in most loan agreements. However, breach of contract is irrelevant to statute barring of debt, in and of itself.

In order for you to take a County Court Judgment against myself, you are required to prove that I did not reside at the address you had on file for me for a period of not less than 6 years. And further you are required to show that this amounted to deliberate concealment. I do not believe you can do this.

You are also required to prove to a judge that this fact is relevant to your Right of Action against me. A current address is not required in order to obtain a county court judgment, as notices may be served at the last recorded residence of the debtor.

Further, you are required to convince a judge that you could not “with reasonable diligence have discovered” my address.

I do not believe that all of these conditions apply, and as you have not provided any evidence to the contrary, I continue to believe that this supposed debt would be statute barred.

I will refer any further correspondence on this matter to the FSA, so please include a copy of your official complaints procedure with your next letter. I would politely remind you that I requested this in my previous letter, and you neglected to provide it, pputting you in breach of the terms of the Consumer Credit Act.

Please be aware, that I will vigouously contest any legal attempt to recover the sum you claim I owe.

fatbelly

graemo wrote: »

I recently went down the statute barred route with a debt collection agency regarding a student loan, they wrote back claiming that under section 32 (1) I was still liable for the debt, as my not advising them of changes of address constituted "deliberate concealment" and affected their right of action.

It is my understanding that a right of action exists even if the creditor does not have a current address for the debtor, and evidently many ccj's occur which the debtor is unaware of. Are they trying it on?

You are correct. They are trying it on and it is perfectly acceptable to start a court claim at the last known address. Most debt collection agencies know this. It appears yours doesn't.

Fermi has posted on deliberate concealment here:

https://forums.moneysavingexpert.com/discussion/comment/60808737#Comment_60808737

Is this a loan with the Student Loans Company or a Bank loan?

If Student Loans Company:

Student loans

There are ‘old style’ and ‘new style’ student loans. Old-style student loans are for students who started their university course before September 1998. New-style student loans apply to students starting their course from September 1998 onwards.

The Limitation Act says that the limitation period for student loans is six years.

The cause of action (when the limitation period starts running) for old–style student loans, is usually when the loan became due for repayment in the April following the conclusion of your course. However, if you asked for it to be deferred within the six year limitation period, this would have restarted the limitation period.

For new-style student loans, the cause of action is likely to be when your earnings reach the set level at which deductions from your wages can begin. Because the Student Loan Company can take money directly from your wages, it might be more difficult to use the Limitation Act.

Can you hold off sending that letter for the moment?

graemo

Thanks fatbelly, I'm so relieved to hear this. I thought I'd shot myself in the foot by trying to be too clever.

The debt is with HSL, originally Student Loans, it was old style so the 6 year limit is valid. I can hold on the letter for a while, they aren't threatening action (given your answer I think I know why ), is it no good?

crazyposhgal

Hi, just looking for confirmation that my next move is a proof it letter.

Got a letter addressed to myself today from Hoist Portfolio saying that by an agreement dated 13/12/13 Lewis group has signed over the Rights of a debt to them and that Robinson way shall be collecting on there behalf.

I gave them a call not having a clue what the letter was about. They say it's for a Clydesdale account when I stayed at southport (2004-2006) I stated I had went bankrupt in 2006 so couldn't be possible. They have now said I have to proof it was on my bankruptcy list and that they will put the account on hold for 10 days until I email them my bankruptcy file. They say as it was done in Scotland and they are English they can't check it.

fatbelly

I'm always reluctant to advise on Scottish law. So you should run it past National Debtline Scotland.

Under England/Wales law this would have been covered by your bankruptcy even if not listed and in any case would be subject to Limitation (statute barred), which under Scottish law would mean it is 'extinguished' anyway.

Hoist Portfolio must be real duffers to buy such a dud. I hope they paid a lot for it.

Just thinking about what I might be able to sell to them...