Quick Question about being "statute barred"

Olibubble

If a 3rd party from a creditor writes to you before 6 years but you have not contacted them for 5 years and 9 months does this mean you cannot wait 3 months and claim the debt is statute barred?

After a quick Google it seems that because the creditor (3rd party) has written to me before the 6 years is up I cannot claim the debt is statute barred. (I have heard no mention off this debt for 5 years and 9 months, and its not that the bank didn't know where I lived, I still have an account with them)

The debt is from an overdraft on a current account. The last payment on that account was made in November 2001.

Does this mean that in November 2007 it has been 6 years and does this mean the debt is statute barred? I'm not sure how this works? I have not made any written contact with my creditors acknowledging this debt.

Thanks in advance.

fermi

It is you who have to acknowledge the debt either in writing or by payment. Not the creditor.

Statute Barred Debts

If you have not acknowledged the debt in writing for 6 years or over then the Statute of Limitation Act 1980 comes into force.

http://www.lawcom.gov.uk/docs/cp151apa.pdf

In which section 5 clearly states

Quote: ... Time limit for actions founded on simple contract
An action founded on simple contract shall not be brought after the expiration
of six years from the date on which the cause of action accrued.

Many many DCA's will ignore this little fact and try and scare you into paying up, relying on the fact very few people know about it.

They will try and tell you that any telephone calls made count as acknowledgement, they DO NOT the law is clear, they will even try and claim that they have written to you and that even classes as acknowledgement – it does NOT!

I also recommend that you head each letter to them as follows:

I DO NOT ACKNOWLEDGE ANY DEBT TO YOU OR ANY OTHER ORGANISATION OR COMPANY YOU CLAIM TO REPRESENT.

DO NOT just use ‘Without Prejudice’ as there has been a recent test case on this matter, and ‘Without Prejudice’ is no longer sufficient!

What you need to do now is send the letter (by recorded delivery) to them, which can be found here:

http://www.debtquestions.co.uk/debt_forum/viewtopic.php?t=19030

If the DCA is working on behalf of the original creditor then send both the DCA and the original creditor one!

The good thing is you then have the evidence that they are trying to pursue a barred debt so if they were stupid enough to try and go to court, then that is you immediate defence, which stands up in court.

However, as with all statute barred debts they can’t take you to court but they can continue to hassle you!!

Hope this helps a bit

rog2

Just bear in mind that you must NOT send the letter BEFORE the six years runs out, otherwise you could be starting the 6 year period again.

Olibubble

Thanks for the input everyone. I am right in thinking that the statute law applies to me because I have never made any payments on my current account with an overdraft facility for 6 years. Or does it only apply after they closed my account?

rog2

Olibubble wrote: »

Thanks for the input everyone. I am right in thinking that the statute law applies to me because I have never made any payments on my current account with an overdraft facility for 6 years. Or does it only apply after they closed my account?

From EITHER when you made your last payment OR from when YOU last made any WRITTEN contact with the creditor, in regard to the debt. Whichever was latest.

MrsTinks

Although technically you DO owe this money and right now it is NOT statute barred. How much is the debt?
Personally as it's before the statute barred date then I would say you should be paying it. If it had been after the 6 years then fair play, but it isn't so I'd say pay it...

Olibubble

I agree with you Time. The amount I owe is £1,100. This was from an overdraft in 2001. I went to Australia for a year after being made unemployed. (Something I always wanted to do). When I got back I went back to my bank and asked to reopen my account so I could pay back the money.

I spoke (nothing in writing) to the manager of the bank who was unable to allow me to pay back the debt because they could not find it on their systems. He phoned the debt collection agency who had passed the debt back to the bank. Therefore I was in a position to pay, but unable to pay it off.

So you can imagine that I am not happy about a 3rd party asking me to pay it back after 5 years of not hearing anything. And adding £600 of interest onto it.

I would have paid this debt off by now (even at £5 a week), so you can imagine that I am now refusing to pay this amount out of principle. Even though I admit I owe it.

I'm sure, given the circumstances you would feel exactly the same. Especially as I went to bank to pay it back, the bank was unable to allow me to pay it back, and have not mentioned it ever since (despite my current account being with them. Its not as though they don't know where I live, is it?)

tostao

best advice is do nothing untill after the november deadline, then write to collector and state 'it is now time barred'
they cannot continue to hassle you for an unenforceable debt
good luck