The 6 year thing?

woodgreen2013

Trying to understand the 6 year thing.

simple question if someone defaults, then 6 years later still has not paid anything the debt is removed from the credit file yes? But can the debt comapnies still chase him for it?

woodgreen2013

Well what I really want to know is can they still chase me for a debt I defaulted on over 6 years ago. I keep getting funny letters every now and then. Then they forget for years then a debt company starts writing thretening letters once again. But its been 6years now so I can forget about can't I? They still show on my credit file but they will be gone soon wont they?

Tixy

6 years after a default is recorded the credit account and default will disappear from your credit file.

The creditor can continue to chase for payment of the outstanding debt. If the debt becomes statute barred then you can inform the creditor you no longer need to pay and then they should stop chasing you for the debt.

The date a debt becomes statute barred is nothing to do with the default date. A debt becomes statute barred (in england/wales) 6 years from the date of the last payment or last written acknowledgement from you that you owe the money but only if the creditor has not already commenced legal proceedings against you.

You say you defaulted over 6 years ago but that the debt still shows on your credit file. What default date is shown on your file? that date should never be changed.

fermi

They can chase you for it.

However, depending on whether you have made payments or acknowledgements in writing less than 6 years ago, the debt may be statute barred now.

See this link: http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

If it is, and you tell them, then they may be obliged to stop chasing.

woodgreen2013

Tixy wrote: »

6 years after a default is recorded the credit account and default will disappear from your credit file.

The creditor can continue to chase for payment of the outstanding debt. If the debt becomes statute barred then you can inform the creditor you no longer need to pay and then they should stop chasing you for the debt.

The date a debt becomes statute barred is nothing to do with the default date. A debt becomes statute barred (in england/wales) 6 years from the date of the last payment or last written acknowledgement from you that you owe the money but only if the creditor has not already commenced legal proceedings against you.

You say you defaulted over 6 years ago but that the debt still shows on your credit file. What default date is shown on your file? that date should never be changed.

Thanks Tixy well I have quite a few some 6yrs old and some a lot newer. I want to concentrate on the newest ones first.

How do I know if they really are going to bring legal proceedings and not just threaten with it?

I dont mind if they do, we are broke and can not pay anything. If they take me to court it wont be the first time and it probably wont be the last. Everyone is finding it hard the way the global crisis is going.

woodgreen2013

fermi wrote: »

They can chase you for it.

However, depending on whether you have made payments or acknowledgements in writing less than 6 years ago, the debt may be statute barred now.

See this link: http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

If it is, and you tell them, then they may be obliged to stop chasing.

So with my newer debts its probably a good thing to acknowlegde them in writing?

woodgreen2013

I think I did write a letter but can not prove it. But I did tell them sorry I will have to default because of the benefit cuts we are out of work and have used up our food bank allocation this year. We can not get any more food from the food bank for about another 8 months, so no chance we can make any payments.

fermi

woodgreen2013 wrote: »

So with my newer debts its probably a good thing to acknowlegde them in writing?

I think you are reading that the wrong way around. If you acknowledge in writing or make a payment, it restarts the 6 year limitation period.

So if it is longer than 6 years since you paid or acknowledged, the debt may be statute barred. If less, then it won't be.

Please read the link with the factsheet. That should explain.

woodgreen2013

ok thanks best ignor?

Tixy

woodgreen2013 wrote: »

How do I know if they really are going to bring legal proceedings and not just threaten with it?

I dont mind if they do, we are broke and can not pay anything. If they take me to court it wont be the first time and it probably wont be the last.

Only way to know is when court papers arrive in the post. Up until that point there is no real way of knowing, as the letters always sound threatening but always contain some ambiguity in the wording.

If one does take you to court and obtain a CCJ then that will be on your file for a further 6years (unless you can pay in full within a month).

If the debts have been passed around for years and nobody previously has taken court action then it seems unlikely that a creditor will (but obviously always a possibility).

If anyone does try to take court action when you believe the debt is statute barred then you should use that to file a defence against the CCJ being granted.

woodgreen2013

Sending a CCA request effectively puts the account into dispute, during which time the creditor may not take any further collection action. Without a valid agreement, the debt is unenforcable without a court order.
However, it is important to reaslise that lack of response to a CCA request may render a debt unenforcable, it does not cease to exist. This process can not, and should not, be used to evade debts.