Advice from an old debt

Dr.Shoe_2

The 6 years thing is a bit of a myth, it isn't 6 years from the date the loan was taken out it's 6 years since the last contact. They have written to him at his home address and have tried to phone him too. This constitutes contact.

qwrefsdoiu

Hello again,

I've told him about the 6 year thing and he's checking it out...According to a solicitor the statute barred is 6 years from the last payment / aknowledgement of the debt...so if he stopped paying 6 years ago even if they've written the debt on the side of a plane for his attention it doesn't matter...contact is the last contact / acknowledgement from him to them of the debt. He hasn't spoken to them in that time or made any contact.

See I'm learning lol...I think. I may be his lawyer at this rate

file_wizzard

Dr.Shoe wrote:

The 6 years thing is a bit of a myth, it isn't 6 years from the date the loan was taken out it's 6 years since the last contact. They have written to him at his home address and have tried to phone him too. This constitutes contact.

Sorry, but that is incorrect, the 6 years is only restarted when the debtor either makes contact and admits the debt, or makes payment against it, after recent case law an admission can take the form of requesting a statement of account (without disputing the debt at the same time) and not just a direct payment towards the account.

qwrefsdoiu

Thanks again file_wizzard...so if hasn't made contact with them..and not made a payment that counts. If they call him and ask him for money etc..aslong as he says 'I have no idea what you're talking about' or something like that..he's not admitting the debt? only if he offers them money for it, or actually says 'yes that's my debt' it's reset? Quite confusing that, I'm sure he can't be the only person to be in this position

file_wizzard

qwrefsdoiu wrote:

Thanks again file_wizzard...so if hasn't made contact with them..and not made a payment that counts. If they call him and ask him for money etc..aslong as he says 'I have no idea what you're talking about' or something like that..he's not admitting the debt? only if he offers them money for it, or actually says 'yes that's my debt' it's reset? Quite confusing that, I'm sure he can't be the only person to be in this position

Basically yes, No admission + no payment within 6 years

However there was a recent case which was upheld whereby the defendant had ask for an account statement for a defaulted mortgage, but had not qualified his request with a comment or statement of non acknowledgment, it was therefore upheld that by asking for a statement of account that he had reasonably inferred that the account was his and that he was attempting to ascertain status.

iolanthe07

But surely, if he owes it, he should pay it, statute barred or not.

qwrefsdoiu

It's funny saying that iolanthe07...I know if it were me and I had the option of a) paying a large sum of money to some mindless corporation making money from peoples misery and financial mistakes, thus encouraging them to repeat the process or b) not paying them...I think I'd be pretty silly choosing a? I know this is a forum for people who are working bloody hard to pay off their debts and get themselves straight and I REALLY admire that

file_wizzard

iolanthe07 wrote:

But surely, if he owes it, he should pay it, statute barred or not.

Depends on your moral standpoint, you could quite easily argue yes if the O.P's friends had deliberately hid / emigrated or falsely returned letters.

However if he/she was freely available and the creditor took no meaningful enforcement action for in excess of the 6 years you could also argue that the creditor has lost their "right" to obtain payment , hence the limitations Act.

Nonetheless, the moral of the board is offer support and help and not Judgement

iolanthe07

It's not just a question of judgement. I have worked hard to pay off my debts and nearly finished now but to see people ignoring them and hoping they'll go away and trying to avoid paying them on technicalities really pi$$es me off.

qwrefsdoiu

I can see your point there...but if my mates attitude was anything to go by...paying them off is a lot less stressful than not doing!

I don't want to upset anyone on here, as I said, it's a very good forum and I have nothing but massive respect for the people on here who get themselves straight