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Question about ‘statute barred’

I hope someone can help.

My nephew has a debt (bank loan). The bank has being pursuing him over the years however he has never responded in any way. It has now got to the point where they are threatening to take him to court.

The debt is over six years old and I am wondering under what circumstances it becomes ‘statute barred’

I wouldn’t normally agree with debt avoidance however he was only 18 years old when the bank gave him the loan. He also has learning difficulties and has taken a bit longer to mature than most.

Comments

  • lemma1968
    lemma1968 Posts: 1,379 Forumite
    If he has never acknowledged the loan in any way or made any repayments within the past 6 years then under the Limitation Act 1980 (if in England and Wales) the debt is statute barred. The exception to this is if they have obtained a CCJ in which case they can seek to enforce at any point.

    Templates letters at:

    https://www.nationaldebtline.co.uk/england_wales

    You will find a templates section for letters. I tried creating the link but my comp will not do hashes!!!
    HTH
    2013 TARGET £30k
    2012 £26500 paid off.
    2011 £22750 paid off
    2010 £19800 paid off
    2009 MBNA Cleared 25.09.09 £34391.33 PAID OFF
    DFW Nerd 612 Proud to be dealing with my debts
  • rog2
    rog2 Posts: 11,650 Forumite
    10,000 Posts Combo Breaker
    Lemma is absolutely correct, lucy. Provided your son has made no payment to the debt, or initiated any written contact with the bank, for a period of 6 years, then the debt becomes 'statute barred'.
    Once he has informed the bank that he will not make any payment, due to the fact that the debt is statute barred (he need give NO other reason) then they can no longer attempt to collect the debt.
    I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
    If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.

    HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7

    DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS
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