6 Years From Default Date?

JKSandy

Just to note in Scotland the statute barred is 5 years. However I have no idea if that means if you reside in Scotland, are Scottish or the company is Scottish.

Anyone know the answer to this?

Tixy

JKSandy wrote: »

Just to note in Scotland the statute barred is 5 years. However I have no idea if that means if you reside in Scotland, are Scottish or the company is Scottish.

Anyone know the answer to this?

If you resided in Scotland when the account was opened then the account is subject to the Scottish Limitation Act which states 5years for unsecured credit debts.

If you originally lived in England and have since moved to reside in Scotland and the creditor is aware that you are resident in Scotland then its probably worth a phone call to somewhere like national debtline for confirmation as to whether you may have an argument to use the Scottish Limitation Act.

rizla_king

The law of whichever legal system the creditor must sue through is the one that applies.

frostfair

fermi wrote: »

.....Reason being that a default can be added to your credit file quite some time after the 6 years for the debt being statute barred started ticking, or the other way around if you pay or acknowledge after the default is added the clock could start very much later than the recorded default date......

Thanks for that Fermi, yes I think I ended up confusing myself with my own question....

So can you clarify when you say "a default can be added to your credit file quite some time after the 6 years for the debt being statute barred started ticking"...at what time would the clock start ticking?..if not when the default is issued then after the last payment had been made?..

Would it be correct to say that the default date is irrelevant because once 6 years has elapsed then thats it...the debt is statute barred irrelevant of the timeframe of 6years+ from default date?

Tixy

Yes, the default date is irrelevant to the date a debt becomes statute barred.

matttye

frostfair wrote: »

Thanks for that Fermi, yes I think I ended up confusing myself with my own question....

So can you clarify when you say "a default can be added to your credit file quite some time after the 6 years for the debt being statute barred started ticking"...at what time would the clock start ticking?..if not when the default is issued then after the last payment had been made?..

Would it be correct to say that the default date is irrelevant because once 6 years has elapsed then thats it...the debt is statute barred irrelevant of the timeframe of 6years+ from default date?

Defaults are entirely separate. You shouldn't consider defaults at all when considering whether a debt is statute barred or not.

The only thing you need to know is when you last paid or acknowledged the debt in writing.

It's worth noting that CCJ's do not become statute barred, but a creditor would have to apply to the court for enforcement and it's unlikely a court would allow such an application if there was a gap of six years where the creditor didn't enforce the debt.

rebm11

When happens if you have never acknowledged the debt since taking it out... I.e. borrowed the money 06/03/2012 then went into default 06/04/2012 as it states on Experian and have never spoken or wrote to anyone since then will that be the date it starts for the 6 years to run...

rizla_king

It would start from the date of the first payment you missed.

rebm11

So would it be best to approach them and offer to make monthly payments to pay the debt off or leave it to be removed after 6 years... as it would take the same time to pay them off?

This would then change the date for the 6 year removal as you have contacted them again?

rizla_king

No. I thought you meant for being statute barred.

The account with be removed from credit report 6 years from the default date no matter what.