Statute Barred - Some advice

**Amy**

Hi All

I was just wondering if anyone has had any dealings with debts that are statute barred, and how it has been handled re: debt collectors?

It isnt for me, its for someone I know who is sure that they can claim a debt as statute barred, but I have had no dealings with something like this, and I dont want them to get in trouble.

Basically they have a debt that defaulted 5 years ago (nearly 6) and they have not had any contact from the debt collectors, despite their address being up to date on their credit report etc.

Any advice appreciated.

Thanks

Amy

MusicalLawyer

A debt is only statute barred when you haven't made a payment for 6 years, or acknowledged the debt within 6 years. You'll need to find out when your friend last made a payment, or had contact with the creditor.

Just because a default is almost 6 years old, doesn't mean that it is statute barred, as your friend could have been making smaller payments or something after the default was applied.

**Amy**

Sorry I meant to say as well, they last paid nearly 6 years ago and have not heard anything since the default was put on the credit file from the DCA.

fermi

What sort of debt was it?

Also could do with knowing what the payment history was like before they stopped paying altogether. e.g were they meeting all contractual payments up until a point and then stopped, never paying or acknowledging after that point? Or did they fail to make contractual payment but continue to make reduced ones for a while?

**Amy**

Hi

It was a credit card debt I think (Mint). Payments were being made and then they stopped paying due to financial reasons, but didnt ever start again. And no contact made (i.e. acknowledging the debt) and none from the creditor was received after default.

Hope this helps?

Thanks

fermi

OK. Two things happen for statute barred debts.

(1) There is the initial "cause of action".

In this case for a credit card the "cause of action" would usually be taken to be the date they first failed to make the payments on the card.

Important to note that, as in this case that would be one month after the last payment.

That is when the 6 years starts for the first time.

(2) Then after that, every time you make a payment or acknowledge the debt that restarts the 6 years from the date of that payment or acknowledgement.

It's important to realise the above, as depending on the history of the account it can make a whole months difference as to when the 6 year period starts. It's not always as simple as saying "date of last payment".

In this case it sounds as if the 6 years would start from the date that they first failed to make the payments. i.e. one month after the actual last payment.

As always, if you need to query then give National Debtline a call.

**Amy**

That's great advice, thank you.

I will explain that to them, and get them to call National Debline if needed.

Thanks again