Statute of Limitations

slackda

Hi MSE guys,

I had some laons go bad over 6 years ago, where i defaulted and entered payment arrangements.

I'm now sitting on a clean credit file as the loans are no longer showing on experian etc as the default date was over 6 years ago.

im happy to continue to pay my debts as i have the obligation i borrowed the money after all.

however i just want to clarify where i stand if i stopped paying, can the 2 loans now legally be enforced? i.e can they issue CCJ/court proceedings against me if i stop paying?

Thanks

Slack

shortcrust

You're thinking of when debts become statue barred. This happens six years after the last payment or the last acknowledgement of the debt (whichever is later). It sounds as though your debts aren't statue barred because you've continued to pay. That means if you stop now the lenders can take legal action to recover the money owed.

DevCoder

Yes, if you are still acknowledging the debt by paying towards it.

They drop off your credit file because its 6 years since the default date, but they are very much enforceable.

bengal-stripe

slackda wrote: »

however i just want to clarify where i stand if i stopped paying, can the 2 loans now legally be enforced? i.e can they issue CCJ/court proceedings against me if i stop paying?

Yes they can, as the last payment was only recently.

It takes six years of non-payment (or non-acknowledgement of the debt) for it to become "not enforceable".

Anthorn

It's Statute Of Limitations in America. Here it's the Limitations Act 1980.


If you have never admitted the debt in writing and never made a payment in the last 6 years and the owner of the debt has never obtained a CCJ then the debt cannot be enforced and becomes what we refer to as Statute Barred. In short, if they have never tried to enforce the debt they lose the right to enforce it after 6 years have elapsed.

If the owner of the debt obtains a CCJ before the 6 years deadline which you don't successfully challenge the debt can never become statute barred.

There are different rules in Scotland.


If you moved without telling the owner of the debt they could argue that it was impossible to enforce the debt because they did not know where you moved to.