Defaults and Statute Barred Debts

Tixy

ST55 wrote: »

Does this mean that you HAVE to write to the creditor for the clock to restart. Its taking a while for me to get my head around it, apologies

A payment from you, OR a letter from you admitting the debt is yours would restart the 6year time limit.

jeebeeb

Hi. Just a question on the same subject. If you call them to dispute the debt does the statute barred debt clock start ticking/unticking again? Also, surely this could only stand up if the company you are dealing with record all their calls. I would love somebody to one day come up with a full definition of statute barred as the mixed messages on forums is so confusing. It would help me immensely with a battle I have been having for three years now!

fermi

jeebeeb wrote: »

Hi. Just a question on the same subject. If you call them to dispute the debt does the statute barred debt clock start ticking/unticking again?

The ONLY things that can restart it are:

- A payment by you.

or

- Signed written acknowledgement by you "making an unequivocal written admission clearly acknowledging that the obligation still subsists"

A phone call cannot restart the clock, no matter what.

A phone call or letter disputing the debt cannot.

Deniseg4

fermi wrote: »

Not true at all. :eek:

To count, acknowledgement MUST be in writing and signed by the debtor.

Phone calls, no matter what happens, even if recorded, do not count.

See : http://forums.moneysavingexpert.com/showpost.php?p=34906357&postcount=7

This was worrying me, you've made my day!!!

paulmapp8306

And the "credit file thing" - you need to check your file. Being statute barred doesnt mean the debt wont show on your file (so they cant get the money back - but future lender will see the history).

6 years from, a default notice, or a settled debt is when it will dissapear from youir record. Some companies dont register a default when you actually stop paying. they record missed payments for a number of months. It can be (and has been for me) 3 years after I initially missed the contractual payment before the default was actually registered.

While that doesnt effect the "statute barred" period - that still runs from the last payment, so they cant make you pay from that point - it does meant the record of the debt - including missed and defaulted payment - show on you record much longer than that.

Deniseg4

Isn't there an OFT regulation that states they have to record the default within a certain time frame? I though it had to be done within weeks of the delinquency.

Tixy

The ICO guidelines (such that they are) state that it should usually be withing 3months and 6months of going into arrears, although there can be exceptions.

If a creditor or debt collector has put one on significantly later than this then there would be grounds for writing a complaint.

Although obviously if a person is try to wait out a statute barred period then they might not want to complain, but if not then its often possible to get the default corrected or removed.

jeebeeb

Thanks for that. I have had a default added in 2010 for a debt that I actually defaulted in 2001. It became statute barred in 2007 but that hasn't stopped them messing up my credit file, therefore ruining my credit file over 16 years for a debt of less than £500. I am
in the process of making and ICO complaint. If anybody has any experience or advice I would welcome this.