Received a CCJ for a statute-barred debt?

tarici75

Hi All,

I'm looking for some legal advice. I'll try and keep this very concise:

- I had previously had an account with Littlewoods at the trailing end of the last decade, however due to a dispute with them taking more money from my bank account on multiple occasions and me actually having paid off most of the debt, with only around £50 remaining, I had stopped the DD at the time until we could resolve the dispute (They had overcharged me).
- Having not made any progress with them, I had around November 2011 moved abroad to Eastern Europe due to getting a Job, I had probably not had any communication with them for around 6 months at this point.
- Now approx around 1 1/2 years ago some letters started arriving from Lowell's solicitors asking for the debt to be paid, however it had balooned to around £600, to my parents address and my elderly mother told them I was no longer in the country and the letters stopped.
- However, at the trailing end of 2017, Oct/Nov they had re-commenced sending the letters and my mother would repeatadly call them telling them I was not in the country, this continued until last month.
- The next 2 letters that have arrived is one from "Count Court Business Centre" in Northampton:
-- "To the Defendant, You have not replied to the claim form, It is therefore ordered that you must pay £979.44 ...."
- - From Lowells pretty much the day after asking for the full amount.

- Now I want to clarify again, at no point during this period have they ever spoken to me.
- My mother had received the letters but not made me aware, I only found out about them as I came to visit and saw them (I am in the UK for the next 3 days and then flying back)
- I am unsure what claim form that should have been responded to, but I rummaged around and couldn't find anything from the court referring to any claim form, so I am unsure how the judgement was issued.

My main key point however is that surely the statute of limitations has passed, they can't chase the debt, as having not spoken to me since way before Nov 2011 they cannot surely chase the debt.
How can a CCJ be issued to my parents address when they've told them I am not there nor that I live there.

My mother has sent a letter to Lowells for harassment as they have kept saying to her to bin and ignore the letters after she has spoken to them on numerous occasions, but now she is stressed afraid that bailiffs will come and take her things away (I actually have no property at their address).

What should I do?

Dobbibill

If a debt is barred under statute, it means that by law (the Limitation Act), the lender has run out of time to use certain types of action to try and make you pay the debt. Statute-barred does not mean the debt no longer exists.

There is some information on the StepChange website about the claim form you refer to. Although it does say it should be dealt with straight away.

https://www.stepchange.org/debt-info/ccj/court-claim-form-process.aspx

shortcrust

All for the sake of £50...

You have to defend your case in court. In other words, if you don't point out the debt is statute barred no one else will. It sounds like you should be able to have the judgement set aside. See this: https://www.stepchange.org/debt-info/ccj/set-aside-ccj.aspx

Nice how the harassment of the elderly mother is an issue now the letters have got scary and not a moment sooner.

PixelPound

Statute barred isn't from how old the debt is or when you spoke to them last. When did you stop paying and when did the account go into default? You don't say but I guess as a default is often applied 3-6 months after last payment then I assume after you left the country. Once legal action commences, the claims form is sent, the clock stops.

See
https://www.nationaldebtline.org/EW/factsheets/Pages/time-limits-for-recovering-debts/statute-barred-debt.aspx

tarici75

I will look into that, as I said I'm flying out again on Tuesday.
My Mum and me are not on the best terms but because my father has become ill I came to visit them and found out about this.
Bear in mind this debt was from such a long time ago when I was fresh out of Uni and a little skint and they had from my recollection started to charge me all sorts of silly fees which I didn't owe so it wasn't just £50. For example I had a DD set up, yet they took the momey late out of account and had the ordacity to charge me late payment fees.
Anyway as I said I wasn't aware of the letters.

[Deleted User]

What date did the account default on?

PixelPound

You need to check the date of the default, from your Credit file if you don't know and check the date the claims form was issued, by contacting the "county court business centre" who issued the CCJ. If it was less than 6 years (5 years and 364 days is less than 6 years) then its not statute barred. So it looks like you got a CCJ in March, so assuming the claims form was dated Feb, which ties in with last contact with original creditors in Nov 2011 and a default 3-6 months later.

sourcrates

The important date here is what is termed "the cause of action date".

There is always confusion (even by the courts) as to when the cause of action date actually is, some say its the date the account defaulted, this can be true is some cases, say for an old overdraught account, where no regular payments are required, but as a rule of thumb, for most simple contract debts, it is normally recognized to be the date of your last payment to the account, that is when the statute barred time clock starts ticking from.

If more than 6 years had passed between the date of your last payment, and the date court papers were issued, then you could conceivably approach the court with a set aside motion, although there is a cost of £255.00 for this service.

If you were successful, then everything would be re-set prior to the case been heard, and you would have an opportunity to enter your statute barred defense.

Thrugelmir

tarici75 wrote: »

Anyway as I said I wasn't aware of the letters.

Other the last known address where was correspondence meant to be sent?

If you no longer live and work in the UK why the concern? A CCJ here will have no impact on you.

National_Debtline

Hi tarici75


Just to clarify the 6 year limitation period runs from the cause of action. That usually means the date court action could have been taken. This will be confirmed in the terms & conditions of the catalogue agreement but it is normally after one or two missed payments. Once the 6 year period has started running, any subsequent payments or a written acknowledgement of the debt within the 6 year period will restart the clock.


You will have to establish whether there was a 6 year period from when court action could have been taken, to the court papers actually being issued. You will then need to check if any payments were made towards the debt in that time, or if you acknowledged the debt in writing.


If you decide you are confident the debt was statute barred at the point court papers were issued you can try applying for a set aside. That's where you ask the court to remove the CCJ and allow the court process to begin again. There are costs involved and as you are about to leave the country this could prove problematic to deal with. I would advise you contact one of the free debt advice agencies for more advice on your best option. You can find out more about set asides here https://www.nationaldebtline.org/EW/factsheets/Pages/howtosetasideacountycourtjudgment/settingasideaccj.aspx


Susie
@natdebtline