Chased for old CCJ

kel2k8

Hi,

My husband had bad debt from before we met, he had a CCJ from car finance (the car blew up and finance company continued to chase for payments even though they had the car back) against him 19/06/2008. He never acknowledge it or made any payments.

After a few years with a bad credit file we thought he was now debt free but a company (Cabot Financial) keep chasing him for this payment. The CCJ and debt is not on his credit report.

At first he replied with the standard stature barred template, they then said he had been making payments so was liable (he hasn't!) and now the latest letter states that as the account has been subject to litigation action the limitations act no longer applies. They state they are under no obligation to provide proof of the payment he has apparently made in the past and state he is still liable for this debt.

Is this correct or is it just scare tactics?
Thanks in advance

National_Debtline

Hi kel2k8


If a debt is statute barred it means the creditor has run out of time to take court action. You could consider if this debt was already statute barred at the point the CCJ was obtained and possibly challenge it on that basis. That could only apply if there had been 6 years prior to the county court papers being issued where your husband did not pay the debt or acknowledge it in writing.


Assuming the CCJ was obtained within 6 years of your husband defaulting on the debt I'm afraid he will be liable for it. Although the CCJ drops of a credit file after 6 years, it doesn't write the debt off. However Cabot do need special permission from the court to enforce a CCJ over 6 years old.


It would be down to a judge to decide whether it is reasonable to allow Cabot to enforce the debt after so long. Your husband could either wait and see what happens, or apply to the court to set up a payment plan. If he does that and sticks to the payment plan agreed, enforcement action cannot be taken, although it's worth mentioning applying for a charging order to secure the debt on a property has no time limit. You'll find the process to set up a payment plan explained here https://www.nationaldebtline.org/EW/factsheets/Pages/varyingpaymentsonaccj/instalmentsonaccj.aspx.


Susie
@natdebtline

sourcrates

Hi,

Tell Cabot more than 6 years have passed since judgement was granted and invite them to obtain the judges permision to continue enforcement action.

I assume you have not been on the dark side of the moon so there should be no reason why judgement was not enforced earlier.