Time limits for recovering debts - Limitation Act 1980 Section 5

sky_rat

EON are trying to recover a debt from when I lived in a rented property 7 years ago, but according to the 'Limitation Act 1980 Section 5' there is a 6 year time limit to recover debts.

So I have sent a letter to EON using a template from National Debtline regarding "Time limits for recovering debts". The template can be found here...

https://www.nationaldebtline.org/ew/sampleletters/pages/time-has-run-out-to-recover-the-debt-%28sole-name%29.aspx#

The debt is for £60, but I just want to make sure that it will not have any negative effects such as a black mark on my credit rating by not paying the debt. As I understand, the debt will still be outstanding but EON will not be able to take legal action.

Can anyone please provide advice on the best option i.e. continue with the 'Limitation Act 1980 Section 5' letter or pay the debt ?

For background information, I recently posted about this debt on the MSE forum which can be found here...

https://forums.moneysavingexpert.com/discussion/5538389

footyguy

sky_rat wrote: »

EON are trying to recover a debt from when I lived in a rented property 7 years ago, but according to the 'Limitation Act 1980 Section 5' there is a 6 year time limit to recover debts.

So I have sent a letter to EON using a template from National Debtline regarding "Time limits for recovering debts". The template can be found here...

https://www.nationaldebtline.org/ew/sampleletters/pages/time-has-run-out-to-recover-the-debt-%28sole-name%29.aspx#

The debt is for £60, but I just want to make sure that it will not have any negative effects such as a black mark on my credit rating by not paying the debt. As I understand, the debt will still be outstanding but EON will not be able to take legal action.

Can anyone please provide advice on the best option i.e. continue with the 'Limitation Act 1980 Section 5' letter or pay the debt ?

For background information, I recently posted about this debt on the MSE forum which can be found here...

https://forums.moneysavingexpert.com/discussion/5538389

This thread may help you further

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

If not, perhaps ask the BG guide here on the Energy Board to move your thread to the DFW board where you will probably get a lot more help on this topic

I believe you are correct that the strict legal position is that you still, and always will until paid, owe the money.
All the limitations act does is prevents the creditor from pursuing you legally for the debt - if they do, you just quote the act in your defence.
Anything on your credit file falls off after 6 years anyway.

Edit: How did you get on with the advice Eon (Helena) gave you in that previous thread?
http://forums.moneysavingexpert.com/showpost.php?p=71429903&postcount=13

D_M_E

As I said in your previous thread, you made what you thought was a full and final settlement of the bill only 2 years ago and that you may well have trouble using the limitations act because of this payment.

Since you have made a payment within the 6 year time limit, the debt can still be pursued as the 6 years starts from the date of the last payment.

You should write and point out that they had produced a bill 2 years ago and you had paid that in the belief that that was a full and final settlement of your final bill and demand they produce bills to demonstrate how they have now arrived at the figure of £60 still outstanding, and also why, 2 years after the last demand was settled, they are now demanding further monies, especially as the account was closed over 6 years ago.

I think you should save the letter quoting the limitations act until you have an answer to the above points.

Tbaron

If above is right, I can only assume you did not provide a meter reading when you moved out? And that the final estimated reading you were billed to has been since amended based on the information provided by the new occupier? I would check the final meter reading on what you thought was the final statement against the final reading they hold for you now.

footyguy

D_M_E wrote: »

As I said in your previous thread, you made what you thought was a full and final settlement of the bill only 2 years ago and that you may well have trouble using the limitations act because of this payment.

Since you have made a payment within the 6 year time limit, the debt can still be pursued as the 6 years starts from the date of the last payment.

You should write and point out that they had produced a bill 2 years ago and you had paid that in the belief that that was a full and final settlement of your final bill and demand they produce bills to demonstrate how they have now arrived at the figure of £60 still outstanding, and also why, 2 years after the last demand was settled, they are now demanding further monies, especially as the account was closed over 6 years ago.

I think you should save the letter quoting the limitations act until you have an answer to the above points.

I'm not sure if that is correct i.e. that the OP acknowledged the debt within the last 2 years

I can't see that in the other thread :huh: All I see is that the OP says the bill was paid when they left the property.

(If the OP has since acknowledged the debt, then you are correct that the 6 years starts again from that last acknowledgment)

However, what I do think I see having re-read that other thread is that Eon are the OP's current supplier. Therefore, I think if the OP gives Eon any money then it could be used to settle the old debt rather than any current bill. It might be possible to challenge that legally, but it would then be for the OP to bring about such a claim.

Easiest to just get the old matter sorted as Eon Helena suggested last month.

sky_rat

D_M_E wrote: »

As I said in your previous thread, you made what you thought was a full and final settlement of the bill only 2 years ago and that you may well have trouble using the limitations act because of this payment.

Since you have made a payment within the 6 year time limit, the debt can still be pursued as the 6 years starts from the date of the last payment.

You should write and point out that they had produced a bill 2 years ago and you had paid that in the belief that that was a full and final settlement of your final bill and demand they produce bills to demonstrate how they have now arrived at the figure of £60 still outstanding, and also why, 2 years after the last demand was settled, they are now demanding further monies, especially as the account was closed over 6 years ago.

I think you should save the letter quoting the limitations act until you have an answer to the above points.

I am not sure if are you referring to my previous post ? Nothing happened 2 years ago, I did not receive a bill or make any payments. I wasn't aware of the outstanding debt until now, 7 years later. In fact, I cant be sure that I made any payments at all, even after I vacated the property. It seems that the account was put on hold whilst they waited for me to provide a tenancy agreement because of the discrepancy with the dates. But they did not contact me again until 7 years later, so I dont even think the account is closed. I have already posted the letter quoting the time limitations. I just want confirmation that this wont have any negative effect for the sake of £60.

Tbaron

Ive read the original post. Its a tricky one. What has probably happened is the supplier would have had notice that someone had moved out on the 1st of August and no details of the person liable or the bills between then and your move in date on the 3rd October. Some companies require a tenancy agreement for any change of liability and without it they will bill you the whole period. If the tenancy agreement has the opening meter readings on it, you should get re-billed. I dont know enough about debt to be able to comment on whether you should pay it. In terms of the industry it would go through a special protocol for accounts not billed correctly after 12 months .

sky_rat

Tbaron wrote: »

Ive read the original post. Its a tricky one. What has probably happened is the supplier would have had notice that someone had moved out on the 1st of August and no details of the person liable or the bills between then and your move in date on the 3rd October. Some companies require a tenancy agreement for any change of liability and without it they will bill you the whole period. If the tenancy agreement has the opening meter readings on it, you should get re-billed. I dont know enough about debt to be able to comment on whether you should pay it. In terms of the industry it would go through a special protocol for accounts not billed correctly after 12 months .

EON have rectified the dates from a copy of the tenancy agreement I gave them, so that is no longer an issue. I was surprised when they still asked for £60 though which is what makes me wonder whether I had made any payments to the account. For the sake of £60 for a debt from 7 years ago, why don't they just write it off ? We all know how much these energy companies rip consumers off, so I have no sympathy for them regarding this debt. Im sure I have overpaid far more than £60 on my gas/electric bills in the past and consumers collectively have overpaid huge sums of money to these companies. In a way I am trying to claim back what I've overpaid !

lstar337

£60? Can't you just pay it?

If you don't it will have to be paid by all of EON's other customers.

sky_rat

And headline news like this is why I refuse to pay the debt.... http://www.bbc.co.uk/news/business-37969613

lstar337

sky_rat wrote: »

And headline news like this is why I refuse to pay the debt.... http://www.bbc.co.uk/news/business-37969613

according to the Sun newspaper.

Stopped reading there.