Confusion with Statute Barred on a 6 year old C.Card debt

sjdunn

Hi All

I've spent the day looking into this and I'm hoping some of you lovely people can provide me with some advise.

In 2009 I had a credit card, and due to my circumstances, divorce and unemployment, I didn't pay it and it defaulted on 26/02/2010. It was from Tesco, and the balance is £1600.

Last year I opened a Noddle account and I could see it on there, during a conversation with a bank manager, they advised not to pay it as it would drop off in a years time, and a few days ago when my file was updated, it did, and I can no longer see it on my credit file.

However, a couple of days ago, I received 2 letters, one from Tesco saying it had been transferred to a Debt agency, and the other from the Debt agency (Robinsons Way) requesting payment. This morning I contacted Step Change, and a lady there told me that I could send them a letter stating that it was Statute Barred, however, there was no guarantee that the debt couldn't re-appear on my file.

This is the first time I have had any correspondence from them in years, and I am 100% positive I have never made any payments or made any contact with them within the 6 years.

From my research today, its untrue that this can go back on to my credit file, is that correct? What I'm still confused about is Statute Barred. Does this mean that they can not take legal action against me to repay this debt? I do understand the debt still exists. I have been advised to send them a letter disputing liability under the Limitation Act 1980, if I do, what should I expect to happen?

Is it just easier for me to set up a payment plan? If I do this I am admitting the debt is mine, and then I cannot claim the debt is Statute Barred. (Just to be clear, I'm not disputing the debt is mine, it is, ive just been advised not to admit this to the creditor) I'm getting very confused as I'm getting such mixed advise whether to pay or not. Any input is greatly appreciated.

fermi

Once dropped off, a defaulted account must not reappear on your credit files. If it should, you complain to get it removed.

A debt being statute barred means a court should not enforce any claim made on this, if defended on that basis.

It seems that dates are close on this, so I would perhaps give National Debtline a call as well on freephone 0808 808 400 for a 2nd opinion.

jadex

OP, you are mixing up 2 things: SB and default.
On top of that, default on your credit file is an admin mark and is not the same as "real" default (you got default notice from Tesco and then as you didn't pay, a few weeks after that your account defaulted).
Account disappearance from your credit file doesn't mean it is SB - you could have acknowledged the debt (by payment, wrongly worded correspondence) after default day thus restarting SB counter.

sjdunn

Thanks Fermi

I contacted them earlier today but as I am in N. Ireland they wouldn't advise me. They suggested I call Step Change who were the ones that told me there was no guarantee it wouldn't go back on to my file.

Another suggestion was to offer a full and final settlement as low as 10% and to mention in the letter that it is Statute Barred and so unenforceable. Surely though, offering a F&F is acknowledgement of the debt and therefore it will not be Statute Barred.

sjdunn

Thanks Jadex,

I haven't made any payments, or any sort of contact with the creditor since I stopped paying the debt so im 100% sure it must be SB by now.

Westminster

Head over here for some free expert advice: http://legalbeagles.info/

fermi

sjdunn wrote: »

Another suggestion was to offer a full and final settlement as low as 10% and to mention in the letter that it is Statute Barred and so unenforceable. Surely though, offering a F&F is acknowledgement of the debt and therefore it will not be Statute Barred.

Once barred, nothing you do can 'unbar' it. So, no, it won't.