DMP Mutual Support Thread - Part 12

System

Can I just check something else. Once an UE becomes Statute Barred. Does that mean no one can make you pay anything?

January2015

ploppy57 wrote: »

Can I just check something else. Once an UE becomes Statute Barred. Does that mean no one can make you pay anything?

No one can make you pay anything on UE or Statute barred.

UE means the debt is still owed, but cannot be enforced through courts because there is an issue with the credit agreement that made it not fully compliant with legislation etc. and therefore you cannot be forced to pay it.

Statute barred also means the debt is still owed but the time a creditor has to chase payment has passed (6 years in England where you have not made payment to, nor have you acknowledged the debt in writing).

Like I said - for both UE and Statute Barred debtors cannot be forced to make payments even though technically the debt is still owed

sourcrates

January2015 wrote: »

No one can make you pay anything on UE or Statute barred.

UE means the debt is still owed, but cannot be enforced through courts because there is an issue with the credit agreement that made it not fully compliant with legislation etc. and therefore you cannot be forced to pay it.

Statute barred also means the debt is still owed but the time a creditor has to chase payment has passed (6 years in England where you have not made payment to, nor have you acknowledged the debt in writing).

Like I said - for both UE and Statute Barred debtors cannot be forced to make payments even though technically the debt is still owed

Can i just add that if a creditor starts legal action on either a statute barred or unenforceable debt, you must still respond to the court papers, otherwise a CCJ can still be registered against you.

Don`t assume because you know the debts cant be enforced, that the court is also aware of this, they wont be.

With a statute barred debt, you would defend on the basis that time has run out for collecting this debt, under sec 5, limitations act.1980.

With an unenforceable debt, you would defend on the basis of a non compliant credit agreement.

You must defend the action, otherwise you risk a CCJ by default.

January2015

sourcrates wrote: »

Can i just add that if a creditor starts legal action on either a statute barred or unenforceable debt, you must still respond to the court papers, otherwise a CCJ can still be registered against you.

Don`t assume because you know the debts cant be enforced, that the court is also aware of this, they wont be.

With a statute barred debt, you would defend on the basis that time has run out for collecting this debt, under sec 5, limitations act.1980.

With an unenforceable debt, you would defend on the basis of a non compliant credit agreement.

You must defend the action, otherwise you risk a CCJ by default.

Thank you Sourcrates :beer: I knew that, but never thought to type any of it

sourcrates

January2015 wrote: »

Thank you Sourcrates :beer: I knew that, but never thought to type any of it

I know you do lol, but It happens a lot, people think because there debt cant be enforced through the courts, that they can just ignore letters about court action, then they are surprised when they check their file and find a judgment.

They must always respond to court papers.

Suseka97

sourcrates wrote: »

I know you do lol, but It happens a lot, people think because there debt cant be enforced through the courts, that they can just ignore letters about court action, then they are surprised when they check their file and find a judgment.
They must always respond to court papers.

Good advice - I have just one query about the sending/serving of court papers, purely out of interest. Do they have to be proven to have been received by the debtor (so signed for, or physically handed to someone) or can creditors set an action in motion to a last known address. I'm curious as to what would happen in the case that someone moves and doesn't keep the creditor / DCA informed of their whereabouts. I read back a while, not on this thread, that someone was hoping to avoid such actions by virtue of the fact they'd moved and hadn't told anyone.

sourcrates

Suseka97 wrote: »

Good advice - I have just one query about the sending/serving of court papers, purely out of interest. Do they have to be proven to have been received by the debtor (so signed for, or physically handed to someone) or can creditors set an action in motion to a last known address. I'm curious as to what would happen in the case that someone moves and doesn't keep the creditor / DCA informed of their whereabouts. I read back a while, not on this thread, that someone was hoping to avoid such actions by virtue of the fact they'd moved and hadn't told anyone.

This is again, a common problem. Papers only have to be sent to the debtors last known address, there`s no attempt to check if its the current address or not (this is currently the subject of a government review, so will hopefully change).

That is why so many people get a "CCJ by Default" because they were completely unaware of the action taking place.

If you don`t defend it, the creditor is awarded the judgement by default.

Suseka97

January2015 wrote: »

,,,,,,I used the MSE mortgage overpayment calculator to work out how much interest and how many years I could shave off my secure debts. For me, it was a no brainer

Thanks to the tip Jan15 - I was looking at whether to re-mortgage in an attempt to bring the years down - currently too many left to pay and would take us well into our retirement years I've just had a mosey at that overpayment calculator and looked at the results vs the terms/cost if we were to re-mortgage and overpaying seems to be a better option. Am going to book a appointment with our lender and have a proper chat. Just paying £300 per month extra shaves more than 4 years off our current term. A far better use of the DMP savings - have currently more than enough in the F&F pot as and when the time comes.

January2015

Suseka97 wrote: »

Thanks to the tip Jan15 - I was looking at whether to re-mortgage in an attempt to bring the years down - currently too many left to pay and would take us well into our retirement years I've just had a mosey at that overpayment calculator and looked at the results vs the terms/cost if we were to re-mortgage and overpaying seems to be a better option. Am going to book a appointment with our lender and have a proper chat. Just paying £300 per month extra shaves more than 4 years off our current term. A far better use of the DMP savings - have currently more than enough in the F&F pot as and when the time comes.

I have 75% of the face value of my non secured debts in savings now. It really does help to only pay token payments Based on this I felt comfortable throwing extra money at the secured loan first and then I will attack the mortgage.

I decided I had enough saved for any decent F&Fs that come through, but more importantly to stave off any potential court action should I get a really bolshy DCA. Thankfully that hasn't happened, and I can't really see it happening, but I am prepared just in case :rotfl:

Daisypop

Thanks all very helpful I am sending letters this week and won’t go into detail will offer tokens for 6 months and then will do an updated i and e after that.
Thanks again