Without Prejudice F&F and Statute Barred?

Bigjazzy

Hi All

If one was to make a full and final offer to a creditor under a "without prejudice" letter would that count as an admission of debt and restart the 6year (5year in Scotland) statute barred timeframe?

Thanks

sourcrates

Bigjazzy wrote: »

Hi All

If one was to make a full and final offer to a creditor under a "without prejudice" letter would that count as an admission of debt and restart the 6year (5year in Scotland) statute barred timeframe?

Thanks

I would say so yes, unless a period of six years has already passed without any acknowledgement, once SB always SB, as you wouldn't offer to pay an account that didn't belong to you would you !!

National_Debtline

Hello there,

If the letter in anyway amounted to an admission of liability it could start time running afresh. If you can construct the letter in such a way that it doesn't admit liability it should not have any bearing on the running of time. It can sometimes be a difficult thing to do, and in situations like this we would generally urge someone to seek legal advice should they require help in writing their letter.

For a 'without prejudice' letter to be privileged and not admissible in evidence as an acknowledgement, there must be a dispute about liability and the letter must include an offer to negotiate compromise or an offer to take part in negotiations. As such, an offer of full & final settlement could be made 'without prejudice' and avoid acknowledging the debt.

I really hope this helps,

David @natdebtline

Bigjazzy

Thanks.

I am statute barred but some creditors arguing about other contact with them and its not statute barred etc. I also know that even if it is statute barred I will still always get chased by debt collectors.

So I want to make an offer for settlement but don't want to restart the time period if indeed they can prove contact was made with them.

My understanding is that a letter which is written under "without prejudice" cannot be provided as evidence in court. Could anyone recommend a lawyer that deals with debt etc that might be able to advise on the best way to write this.

Thanks

fatbelly

The good news for you is that if it is statute barred, it stays that way. Section 29(7) of the Limitation Act 1980:

Subject to subsection (6) above, a current period of limitation may be repeatedly extended under this section by further acknowledgments or payments, but a right of action, once barred by this Act, shall not be revived by any subsequent acknowledgment or payment.

If you have a look at these standard letters, the creditors are required by the fca to cease debt collection activity if you state that you will not be paying because it is statute barred.

https://forums.moneysavingexpert.com/discussion/2606811

You can still make a settlement offer if you wish, of course. The standard National Debtline letter is, I notice, headed 'without prejudice':

F&F letter