cabot finance statute barred

ollie75

I recently sent the statute barred letter to cabot finance. I did not acknowledge the debt. They have replied saying that my account is not statute barred and will be pursuing the debt. It becomes statute barred in Feb 2011. My issue is have I now restarted the clock on the statute barred period by sending the letter? I did not acknowledge the debt I simply pointed out that should the prove it is mine it was statutes barred. Any help appreciated.

ollie75

That should be 2012.

oldhand

If its not actually statute barred until feb next year I think you may have made an error even writing to them.someone else will be along soon who may know for sure.

ollie75

This is the letter I sent. I don't believe I have actually acknowledged the debt, but really need someone to clarify id the wording is enough. If I have made an error then I am in a bit of trouble as I don't have the £3k requires to clear this!

Cabot Financial

‘Without Prejudice’

I do not acknowledge any debt to you or any other company or organisation that you claim to be representing.
Dear Sir/Madam
Account No:
Cabot reference
In respect of the above account, your company have contacted me which you claim is owed by myself.
It is my understanding that under The Prescription and Limitation (Scotland) Act 1973 Part 1 Prescription Section 6:
“If after an appropriate date, an obligation (an appropriate debt) has subsided for a continuous period of five years:
(a) without any relevant claim having been made in relation to the obligation, and
(b) without the subsistence of the obligation having been relevantly acknowledged;
then as from the expiration of that period the obligation shall be extinguished...”
It is also my understanding that the Office of Fair Trading (OFT) guidance for Debt Collection Companies for statute barred states that:
“It is unfair to pursue the debt if the debtor has heard nothing from the creditor during the relevant limitation period”.
The last written acknowledgment/payment of this debt was made over five years ago and no further acknowledgement or payment has been made since that time. Unless you can provide evidence of payment or written contact from me in the relevant period under Part 1 Section 6 of the above Act, I suggest that you are no longer able to take any court action against me to recover the alleged amount claimed.
The OFT Debt Collection Guidance states further that:
“continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statute barred could amount to harassment”.
I await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.
I look forward to your reply.
Yours faithfully

vax2002

You should have started with a credit check !
You should still do a credit check and get your information, the date of default will be shown.

saltnvinegar

Your letter states 5 years.

Are you in Scotland and were you living in Scotland at the time the agreement of the alleged debt started?

saltnvinegar

ollie75 wrote: »

That should be 2012.

Do you mean that the debt will become statute barred in Feb 2012?

If so then Cabot are correct that it isn't statute barred yet.

ollie75

Hi Yes sorry the Debt becomes statue barred in February 2012 as I am in scotland. I thought I had checked the date and it was this year so got ahead of myself and sent the letter too soon!
I had hoped that the wording of the letter might allow me to escape the 5 year period from re-starting and that it could still become statue barred. I have never acknowledged the debt before and have not made any payments since 2007.
I just don't want it to go to court as I have a satisfied CCJ which is about to clear and my file is almost clear, I guess I have been daft in avoiding this debt so long, and should maybe just try and pay a small amount I can afford.

fermi

---> Annex B - STATUTE BARRED DEBT - Legal Position

B.7 A relevant acknowledgement will normally be made by performance of the debtor (or his representative). For example, by making payments or by making an unequivocal written admission clearly acknowledging that the obligation still subsists.

Tixy

Who says it become statute barred in Feb 12? you or them? if they what proof have they given you? or what is the last event that occured (prior to your letter)?

ollie75

They sent me a letter in response to my statutue barred letter. It reads as follows:

You have stated that your outstanding balance is statue-barred because the cause of action in this matter began more than six years ago.
A default notice for this account was issued by Egg on 1st February 2007 and as a result the limitation period runs from that date.
Therefore our right to recover the outstanding balance on this account is not Statute-barred and we can take action through the courts to recover the outstanding balance. The amount due is £2025.59.

Now I did not ackowledge the debt, and they mention 6 years not 5 as I am in Scotland. But it is the courts part that has spooked me!