Statute Barred debt Scotland- Help!!

Cheryl2010

Hi, i came across this site while looking online for some advice.

A bit of background - my mother is quite the emotional manipulator to the extent that both myself, my Husband and both sisters have debt in our names that we took out to help our Mother.

My Husband has a default in his name and we receive letters every few months from Lowell demanding payment - however, i believe that as of 17th April 2017 the debt became Statue Barred (the registered default date on his Noddle report is 17th April 2012).

Can we confidently send them the Statue Barred letter, my mother has said she hasn't paid/ spoke to the company in this time frame or should we leave it and see what happens next? The last letter they sent was a Pre Legal Assessment letter so i am worried they may try to start court action against him.

We also now have 2 new defaults (last few months) from other Creditors - again loans taken out for my Mother. What are our options on these? We have told her they need to be cleared by the end of the year but i am assuming the defaults will stay on for another 6 years.

We are trying to buy a house at the moment but think it will need to be put on hold for at least 6-7 years

We obviously have told our mother that we will not be helping her financially any longer as neither me nor my sisters knew she had been using all 3 of us - she made it seem like that others were the 'bad' ones and one 'we' could help her.

Thank you in advance for any advice/comments.

National_Debtline

Hi Cheryl

For most standard credit debts like loans and credit cards the 5 year limitation period normally runs from when a contractual payment is missed rather than the default date. It’s possible your husband’s debt may already be statute barred, or extinguished as they say in Scotland.

Ideally it’s best to leave it as long as possible to be sure, but certainly after the default date you can send the statute barred letter providing your husband hasn’t made a payment or acknowledged the debt in writing since.

Use this sample letter to send them as it specifically relates to Scotland:

https://www.nationaldebtline.org/S/sampleletters/Pages/Time-has-run-out-to-recover-the-debt-(sole-name).aspx

In terms of the other defaults on your credit files I’m afraid they will stay there for 6 years from the default date. If you want to get a mortgage in the meantime it’s worth speaking to a mortgage broker to see whether they know of lenders who may still give you a mortgage for an affordable interest rate.

James
@natdebtline

Cheryl2010

Thanks for the reply.

So on my Husband credit file it lists the default date as 17th April 2012, but there are no red 'icons' until July 2012. There are no icons before this date, even green/amber ones showing.

Should i then treat July as the defaulted month rather than April? I just dont want to send the letter in case the account hasnt been defaulted and we need to chase my mother for payment (which will never happen).

How do i check if the account has defaulted without admitting liability for the debt?

Thanks

sourcrates

Cheryl2010 wrote: »

Thanks for the reply.

So on my Husband credit file it lists the default date as 17th April 2012, but there are no red 'icons' until July 2012. There are no icons before this date, even green/amber ones showing.

Should i then treat July as the defaulted month rather than April? I just dont want to send the letter in case the account hasnt been defaulted and we need to chase my mother for payment (which will never happen).

How do i check if the account has defaulted without admitting liability for the debt?

Thanks

Hi,

Your overthinking this a little bit.

The default date is clearly stated on the credit file, but that's irrelevant.

It's the cause of action date that's important here, the last time a payment or written acknowledgement was made, that is likley to be a good few months before the default date.

Send the statute barred letter to Lowell as soon as possible, it's up to them to do all the legwork, not you, you don't have to prove anything, let them play around with it, they must disprove your argument.

Cheryl2010

Thanks - i realise i am probably putting more thought into it than i need to. I have just never had any issue like this before so not sure where to begin.

I thought that if i sent a Statue Barred letter, but the debt wasn't actually barred yet i would be effectively acknowledging the debt and the clock would then be 'reset'.

Is this correct or not? I am just worried as my Husband was receiving calls from Lowells every day/several times a day but he always just hung up or ignored. I don't believe he acknowledged the debt as such.

However, i do recall my mother asking for a 'Letter of authority' for her to deal with the account on his behalf (as it was her making the payments). I cannot say for sure but i think this would be within the past 5 years - would this count as acknowledging the debt?

Sorry again for all the questions - i just want to make sure i know where i stand from a legal point of view.

sourcrates

Cheryl2010 wrote: »

My Husband has a default in his name and we receive letters every few months from Lowell demanding payment - however, i believe that as of 17th April 2017 the debt became Statue Barred (the registered default date on his Noddle report is 17th April 2012).

You have answered your own question here.

Default date of 17/04/2012.

The letter that was sent was not from him, hence no acknowledgement.

The Limitations period in Scotland is 5 years, it was already statute barred by April 17th this year.

Send the letter with the Highest confidence ASAP as Lowell tend to start court action at the drop of a hat.