How to tell if a debt is time barred or not ?

cornwall81

Hi peeps.

I have just been told about this wondeful site by a work mate.

My issue is regarding a old debt and wether or not it is time barred/ statute barred.

Loan taken out from a high street bank about 9 years ago.
I repayed for a year and a bit until i lost my job.
They then sold my debt to a DCA type firm who sent me letter after letter. I agreed over phone to pay bits off using a paying in book they sent me, this only lasted for a couple of months though. I have had no contact at all since then.

I have since moved quite often and this debt follows me around, they eventually send me letters at my new address.
I cant afford to pay it back what with the wage i am on and having a family to support.
This debt has been passed on from one firm to another I am baffled as to who actually is asking for it tbh.

The letters from each firm follow the same cycle ;
1 hello we now own your debt please contact us,
2 due to no response we are sending a field agent to your flat,
3 legal action to be taken unless you pay within a set time.


Anyhow my work mate said that after so long the debt becomes statute barred and they can no longer legaly make you pay it ??

I have read on here about checking your credit file from experian equifax etc.
I have done the two different firms and this big debt doesn;t show up. No CCJ's or anything.

My last payment on this debt must have been roughly 5-6 years ago but I am not certain

So would it seem it must be statute barred, especially as its not on my file ???

Please help.

bottleofred

Hi Cornwall and welcome to the forum,

All debts become statute barred after a period of 6 years, providing there has been no payment made toward them or a written acknowledgement of the debt etc. As the debt is not on your credit file, it would suggest that a period of more than 6 years has elapsed, as there would probably be details of any default regarding the loan. The fact that the debt may be statute barred though, doesn't stop the debt collectors sending the letters, as they hope you will contact them and pay the debt etc.

cornwall81

thanks for the help.

I know they can still send the letters but at least I can sleep at night.

So if its not on my file its definately statute ??
Anyone else help with this one ???

Could it be an error or something else ??

CrazyAngel_3

Hi There

A debt becomes statuted barred either

1. 6 years from termination of the agreement
2. 6 years from judgement, or
3. 6 years from last payment

Whichever is the latest.

VitaK

The fact that it is no longer on your credit file does not equate to it being statute barred.

Have you keept record of any part payments. Alternatively, this information can be requested from the DCA, but you need to be carefull not to acknowledge the debt, if the full 6 years have not yet elapsed.

cornwall81

VitaK wrote: »

The fact that it is no longer on your credit file does not equate to it being statute barred.

Have you keept record of any part payments. Alternatively, this information can be requested from the DCA, but you need to be carefull not to acknowledge the debt, if the full 6 years have not yet elapsed.

Really ???

This goes against last few replies.

No record kept of last payment.
Trouble is I dont want to contact them incase the 6 years are not up.

awayinchina

This sounds more like phishing exercise as if they knew 100% it was your debt they would have sent details as to what the debt is:
1) ignore the letters until they decide to write and say what the debt is
2) if someone turns up, shut the door and that is it.

just because a debt is not on your file does not 100% mean the debt is statute barred. DCA's are devious to say the least. The important thing is they word letters as "may" which is different to "WILL"

fatbelly

cornwall81 wrote: »

Really ???

This goes against last few replies.

No record kept of last payment.
Trouble is I dont want to contact them incase the 6 years are not up.

The credit file is irrelevant. It might be a pointer but a pretty unreliable one. It should confirm that there's been no ccj in the past six years though.

I think you are correct not to contact them until you are sure that here has been a period of six years with no acknowledgement by you either by payment or in writing. If anyone did start a court claim, you would put in a statute barred defence.

There's more info (and standard letters) here:

» Statute barred debts and the Limitation Acts

We're assuming that you're in England or Wales, I guess, because of your username.

bottleofred

Hi Cornwall,

Details of a debt (defaults etc) fall off your credit file a total of 6 years after they are applied. However, if you had a default for this loan applied to the account and then paid a payment to it after say 1 year, then in theory, only 5 years may have elapsed since the last payment. It is very dependent on when you made the last payment towards the debt etc that makes the difference between the debt being statute barred or not. I hope this clarifies the situation.

cornwall81

Yes in England.
So chances are it is still live then.

Trouble is I also have 2 mobile phone bills outstanding, which only amount to 200 quid.
Now if i was to pay these off as they are only a couple of years old would this alert the DCA as they also are chasing the big one ???

Would I be best ignoring these for a year or so to make sure the big one has expired ???

cornwall81

Also am I right in thinking if they wanted to take me to court for a CCJ and it was granted then I would have 28 days to pay it off for it not to register ???

How would I know if they were actually taking me to court ???
Would the court send me a letter to tell me the DCA's intentions ???