Advice on statutory barred debt

Jonhn

Hi,
I have a debt which is over six years old, last time I made a payment on this account via a debt management company is on 01/10/2010. I can prove this by my previous bank statements.
When I stopped making the payment to the debt management company on the above date. I just wan to know, Even if I stop paying the debt management company, if they have continued paying for the creditors for few months more (eg until 01/02/2011); will this count as a payment towards the debt? and then the debt would be statuary barred after 01/02/2011. Instead of the day I last made the payment to the debt management company 01/10/2010.
Can I still be able to defend my self on a ccj claim because I wasn’t liable for the payment made by the debt management company to the creditor on behalf of me?
I just want to cover all the basis before I go on the statuary barred route your advise on this matter would be highly appreciated thanks

sourcrates

Hi,

The law may be open to interpretation here, depending on your view.

Generally speaking the "cause of action" date would be the date of YOUR last payment, however, the creditor may take the view that it's the date the DMC made the last payment on your behalf.

It would most likely go to a hearing for a judge to decide.

Are you currently being chased for this debt ?

National_Debtline

Hi John

A payment made by an ‘agent’ that you have instructed to pay the creditor on your behalf will count as a payment for limitation purposes. That means that the 6 years will run from the last payment made by the DMP company, if you authorised them to make that payment.

James
@natdebtline

Jonhn

Hi,
Thanks for your reply, yes I am chased by the creditor, I have got six years bank statements and it proves that
I last made the payment on the 01/10/2016. But part I am not sure is with the DPM company if they had continued paying after I stop the payments. What do you think would be the best cause of action in this situation
let me know please

Jonhn

Hi James,
But can I argue the case I havent authorised them to make the payments after I have canselled the contract and
stop paying them. So the payment's which were made after I canseled was at their on concent without my acknowledgement. Do I have a defence on this grounds? thanks for your help

sourcrates

Jonhn wrote: »

Hi,
Thanks for your reply, yes I am chased by the creditor, I have got six years bank statements and it proves that
I last made the payment on the 01/10/2016. But part I am not sure is with the DPM company if they had continued paying after I stop the payments. What do you think would be the best cause of action in this situation
let me know please

Basically try and drag it out as long as possible.

Is it the original creditor chasing you, or a debt collector ?

MrsTinks

This would be pretty much as James stated most likely to be taken from the date the DMP last paid it - even if you cancelled the contract with them you had still instructed them to make THAT payment. Unless you are suggesting that they paid this out of their account? Most DMP companies have a delay in paying over the money after you pay them (fee paying ones even more so) so it's feasible that they might not have made the payments for a month or two (let's not argue ethics) - technically they would have still been acting under your instruction unless you in writing specifically stated "DO NO under any circumstances pay from x date any further moneys owed to Y company" then I think the court would consider the date as valid.

My personal view would be that you are on very thin ice with it, but I guess in theory it might be worthwhile seeing if a judge would accept YOUR last payment date or if they would consider the instructed agents payment date.

National_Debtline

Jonhn wrote: »

Hi James,
But can I argue the case I havent authorised them to make the payments after I have canselled the contract and
stop paying them. So the payment's which were made after I canseled was at their on concent without my acknowledgement. Do I have a defence on this grounds? thanks for your help

If you had cancelled your agreement with the DMP provider and they made payments without your consent you may have a case to say the debt is statute barred, if they weren’t acting as your authorised agent. You’ll need legal advice to clarify though as it’s not a straight forward area and may come down to the terms of the DMP agreement.

Have you actually received a county court claim form now?

You may be able to access free legal advice through the following organisations:

www.lawworks.org.uk

www.lawcentres.org.uk

James
@natdebtline

Jonhn

I have received a ccj form the above creditor previously which Iam planing to pay off within 30 day period, to avoid affecting me credit file. The same creditor is sending me the letters for the
debt I spoke to you guys about which is mentioned above. But it’s been six years since I have acknowledged a payment for them.
I am bit worried they will start court proceedings on the other debt as well, so that’s why being
proactive and see what my options are. This is defiantly over six years since I last made to payment to them. But I don’t know if the DMP company had continued paying them you see.
I know once I make the payment for the first debt with the CCJ they will probably come all guns blazing for the second one. I think it’s best me seeking legal advice on this matter init as you guy’s mentioned it is a
gray area thanks for all your help

sourcrates

If they were to start a claim, it can't hurt you any by submitting a statute barred defence.

They have to prove it wasn't SB, so if it comes to light that it's not SB, you will be no worse off.

National_Debtline

Jonhn, on the debt where they haven’t started a court claim and you aren’t 100% sure when the payments were made you could send the statute barred letter anyway. The onus is on them to prove the debt isn’t statute barred or stop collecting. There’s no harm in doing so as sourcrates says.

The template letter is here:
www.nationaldebtline.org/EW/factsheets/Pages/time-limits-for-recovering-debts/Page-06.aspx

James
@natdebtline