Statute barred debts and the Limitation Acts

simon184

Hi there I have searched and searched but can't find the answer was hoping you could help me I'm sure I had a ccj on me with a sb loan but was wondering if claiming ppi on that loan with third party agency not me directly with the bank is a form of acknowledging the debt therefore resetting the limitation act any help would be greatly appreciated thank you

poppasmurf_bewdley

I thought that if you made a claim for PPI on a loan which is in arrears, any payment due is offset to the amount owing.

And if it isn't, it should be!

sourcrates

simon184 wrote: »

Hi there I have searched and searched but can't find the answer was hoping you could help me I'm sure I had a ccj on me with a sb loan but was wondering if claiming ppi on that loan with third party agency not me directly with the bank is a form of acknowledging the debt therefore resetting the limitation act any help would be greatly appreciated thank you

If you already have a CCJ for the debt, then it's irrelevant really, unless you were relying on the SB defence to set aside the CCJ, is that the angle your looking at ?

Would Claiming PPI, reset the SB date, that's a question you would have to ask on legalbeagless, link here :

http://legalbeagles.info

Or National Debtline may be able to give you a definitive answer.

simon184

Thanks that is the angle I was looking at as I've recently moved and received an n56 form with chance of jail time for a ccj I was completely unaware of and if the ppi claim doesn't effect the limitation act then I think I can counter act the ccj from what I've gathered is that right ? Thanks

sourcrates

simon184 wrote: »

Thanks that is the angle I was looking at as I've recently moved and received an n56 form with chance of jail time for a ccj I was completely unaware of and if the ppi claim doesn't effect the limitation act then I think I can counter act the ccj from what I've gathered is that right ? Thanks

Well you won't go to jail for debt, that went out with the ark, if you were unaware of the CCJ, that could also be grounds for a set aside, but be aware, it's rare to get a CCJ set aside, you will need a good reason, and it will cost you £155.00 to find out, also the other side may not even be aware of the PPI claim, is the debt still with original creditor or DCA. ?

fatbelly

simon184 wrote: »

Hi there I have searched and searched but can't find the answer was hoping you could help me I'm sure I had a ccj on me with a sb loan but was wondering if claiming ppi on that loan with third party agency not me directly with the bank is a form of acknowledging the debt therefore resetting the limitation act any help would be greatly appreciated thank you

simon184 wrote: »

Thanks that is the angle I was looking at as I've recently moved and received an n56 form with chance of jail time for a ccj I was completely unaware of and if the ppi claim doesn't effect the limitation act then I think I can counter act the ccj from what I've gathered is that right ? Thanks

If you've received an n56, then you should respond to it. Ultimately you can be jailed (max 2 weeks) for non-compliance with a court request for information that will allow them to set up an attachment of earnings.

CAB info on this here:

https://www.citizensadvice.org.uk/debt-and-money/action-your-creditor-can-take/creditor-takes-money-from-your-wages/

Once a county court judgement is made, the Limitation Act does not apply.

If the creditor is seeking to enforce a judgement that is more than six years old, then you do have arguments against that, and National Debtline would be able to point you to the relevant case law.

fatbelly

poppasmurf_bewdley wrote: »

I thought that if you made a claim for PPI on a loan which is in arrears, any payment due is offset to the amount owing.

And if it isn't, it should be!

This is true. If you're using a third party agency to do the claim, then the third party agency normally then bills you for their fees directly and will start a court claim against you if you do not pay up. I once had a client with 3 ccjs because of this misunderstanding.

Jbrem194

Jbrem194 wrote: »

Hi.

In 2009 i signed up for a home course with a company called Advent, my sister acted as a guarantor for me since they said that they would find me employment within the year but some months after i started the company went bankrupt.

On 22nd February 2010 my sister recieved an arrears noticed letter from Barclays(The bank Advent used for the Student loans) and on 23rd July 2010 the arrears had been handed over to a Mervers debt collection limited, since i felt checked by this whole deal we decided that we weren't going to pay anything and the replacment company they had found was said to be much worse.

Since then the debt has passed to i think 2 other companys and earlier this year my sister reminded me of this whole thing and since i had heard of Statute Barred i went to check up the details of it which lead me here and since we live in Scotland the 5 year should of been up so i sent my sister a link to the letter on the first page which she sent to the company that presently has the debt, they have since replied saying that the account was terminated in December 2011(I haven't seen the reply letter yet so i'm not sure what they mean by that) and that it doesn't go Statute Barred til christmas next year which doesn't make much sense to me so i'm looking for advice to this matter and whether that with my sister sending them that letter whether the debt has been acknoledged or what to do now.

Regards

Hi again, hate to be a nussance but is there anyone that has any advice for this.

Thanks in advance

sourcrates

Jbrem194 wrote: »

Hi again, hate to be a nussance but is there anyone that has any advice for this.

Thanks in advance

The important date when trying to work out weather a debt is statute barred or not, is the "cause of action" date, not the date the account defaulted, and not when it was terminated.

You may need to refer to the terms of the loan to see at what point the creditor could of taken legal action to recover the debt, it's normally after 3 to 6 missed payments. From what you say, I think it may become SB later this year.

fatbelly

Jbrem194 wrote: »

Hi again, hate to be a nussance but is there anyone that has any advice for this.

Thanks in advance

Sorry, missed your earlier post.

As the law is a bit different in Scotland, it may have put people off.

I take it this was some sort of debtor-creditor-supplier deal where a 'third party' creditor provides the finance for a company to supply services to the debtor. Barclays Partner Finances used to do a lot of these.

You are right that the Limitation period is five years in Scotland, so that's 5 years from the cause of action, extended if you acknowledge the debt.

The question here is when was the cause of action? In most claims under contract, this is simply the date when the breach of contractual obligation occurs. Presumably the contract you signed had a requirement to make monthly payment and you stopped doing this in 2009. They had until 2014 to take action against you and you now have a defence against a court claim.

Whether the cause of action in relation to your sister's contract was at the same point would depend on the terms of that contract. They seem to infer that a termination notice was required (presumably with a demand for payment), and that was not sent to her until December 2011. That may be bluff, or may be true, but on their reckoning they have until Dec 2016 to test their assertions (against hers that the debt is now statute barred) in a Scottish Court.