Statute Barred?

Tixy

Miss149 wrote: »

Ahh I think I'm understanding a bit better.

So for example my RBS credit card shows default as nov 2005 so I'm December this year that debt will be removed off my file? However if I start making repayments it will stay on my file for a further 6 years or until I settle the debt? Is that right? No it will go from your file in Nov this year no matter what you do now.

So in effect if I just carried on ignoring it (not the most responsible thing to do) it wont show on my credit file next year, so I am more likely to be accepted if I apply for a mortgage or loan? In effect I can start rebuilding my credit rating and start a new? Xxxx

Miss149 wrote: »

Sorry Guys,

Also if i dont pay the debt back and just continue ignoring it with the defaults (approx 8!!) dtay on my file forever?

Nope, they'll all go after 6years from the defaults, so over the next year or so from the sound of it.

If your debts are already statute barred then you do not need to pay them back, legally. If any are just about to become statute barred (you don't say when you last paid them in 2005) then you could just ignore them and wait for them to become statute barred. The only thing not to ignore is if any of your creditors issue court proceedings (that will be court papers through the post).

If they are already statute barred, or when they become SB then you can write to the creditors saying you know they are SB and do not intend to pay - at that point they have to stop chasing you.

Then once your defaults have gone from your file you can start building up a positive credit history.

Miss149

Hello

Thank you so much for your help, it really is apprecaited.

I last made payment around July/August in 2005 so they are due to become SB (saves me spelling incorrectly!). I know its not the most resposible thing to do but i think I'll just leave the debt to become SB and wait for the defaults to fall off my file. Ive searched my credit file and got this;

£608 - Defaulted 19/12/2005
£295 - Defaulted 30/12/2005
£1822 - Defaulted 04/03/2006
£1555 - Defaulted 25/05/2006
£434 - Defaulted 26/09/2006
£405 - Defaulted 10/12/2006
£497 - Defaulted 12/06/2006

I was pretty awful at re-payments and just ignored things, being a a typical 18 year old spending money on vodka and handbags instead. I've managed the last 6 years without credit cards, i have one loan that i took out to buy my car and i've made every payment without fail on that since 2009 and that finishes in February 2012 so Hopefully this shows i am now trying to rebuild my score and become resposible. I think I'd rather save the £450 a month into an ISA account then pay back these old debts, this will at least start putting a chunk towards a mortgage deposit in 2-3 years time.

Its pretty irresponsible of me, and im trying to save every way currently, even giving up my acrylic nails, and 6 weekly hair appointments, my monthly shopping trips, visits to liverpool and manchester, everything! I've budgeted to just £40 a week to try and put at least £450 into my ISA.

Do you think this is an appropriate action, or should i start making payments on the debt? Most of them seem to have given up, they've treatened court action and debt collectors, but nothing in the last 5/6 years has happened, i think this is because the debt is un-secured and i live with my parents so i dont have equity or property. Although im not sure

Again thanks for your help it really is appreciated.

xxx

Tixy

The whether you should pay back statute barred debt debate is one that comes up quite frequently on here and people often post both sides of the debate.

I'd say that the creditors all know the law and have had 6years to chose to take you to court. If they don't take that action in that timeframe then they will know the debt will become SB. Some people describe it as a loophole - I'd say its not, to me a loophole is something accidentally in place in law due to bad wording or an ommission, but the limitation act is an entire act that has been specifically written to cover these circumstances.

As your debts are so close to being SB then a lot of people would agree with just sitting it out and hoping none take court action. Its not that likely but it does sometimes happen just prior to a debt going SB. Just make sure you keep opening post that is delivered to parents on the off chance they do send court proceedings. Assuming they don't then sometime after August send them all the SB template letter and they should then stop sending letters etc to your parents.

This has the template letters should you need them - Statute barred debts and the Limitation Acts

Good luck with your savings.

Miss149

Thats it, I feel in a right a pickle as to whether to accept resposibility and pay them back or just wait it out. Either way I think I learnt a tough lesson, and just want to get myself back on the straight and narrow as my dad says!

I've finally registered to a credit scoring agency (Call Credit) to keep a check on my credit file monthly, rather then just ignoring it. So this way i can track the changes. There's some debt ive got from 2010 & 2011 thats about £2000 (Littlewoods, Santandar Overdraft, Wonga.com ((stupid payday loans i know)) and Paypal) that I'm going to try and get repaid over the next 6 months, it'll mean a tight budget but i'd rather get it cleared and then it will show as settled on my account.

I've had mobile phone contract for the last 3 years and havent missed a payment, and obtained an overdraft so I am trying to prove my resposibility. I just want my credit rating to show 5 out of 5 not 1 out 5 like it currently does!

I dont want to seem like im hiding from my problems, but ive avoided it for so long just hoping it would go away, now i hope it will! Thanks for the template on the SB letters, that is a bit help.

xxxx