Statute barred debt

TMO

Hi. When does the clock start for a statute barred debt take place on a payday loan?


Is it the day you received a loan, the due date or the default date?


Thanks

System

From the last time the debt was acknowledged so neither of those dates. Assuming no acknowledgement once it has defaulted it would be the default date. Basically every entry stays visible on your credit record for 6 years from the date it was put on.

TMO

Tarambor wrote: »

From the last time the debt was acknowledged so neither of those dates. Assuming no acknowledgement once it has defaulted it would be the default date. Basically every entry stays visible on your credit record for 6 years from the date it was put on.

So what if I took a payday loan in march. Paid it in april 2012. They gave me another payday loan in april, I disputed it saying I never took out a another loan and carried on disputed it unil nov 2012 then just stopped emailing them cause dispute was going nowhere. But they put a default on my file in august 2012. So when would the statute bar date start?

sourcrates

TMO wrote: »

So what if I took a payday loan in march. Paid it in april 2012. They gave me another payday loan in april, I disputed it saying I never took out a another loan and carried on disputed it unil nov 2012 then just stopped emailing them cause dispute was going nowhere. But they put a default on my file in august 2012. So when would the statute bar date start?

For most loans in England and Wales the limitations period is six years. It starts at the point where the creditor has a cause of action, this means the point at which he could sue you. If you are paying a debt normally, you cant be taken to court for it. So it is only when you have missed a payment to a debt that this 6 year period starts.

So in your case the date of the first missed payment would be the cause of action date, and the time clock started ticking.

TMO

sourcrates wrote: »

For most loans in England and Wales the limitations period is six years. It starts at the point where the creditor has a cause of action, this means the point at which he could sue you. If you are paying a debt normally, you cant be taken to court for it. So it is only when you have missed a payment to a debt that this 6 year period starts.

So in your case the date of the first missed payment would be the cause of action date, and the time clock started ticking.

So if the first payment due date was 27 may and I never paid it, and never paid anything since then does that mean it's statute barred now? even though I did send them emails after missed payments telling them I dispute the loan and they put a default on cra after it?

fatbelly

sourcrates wrote: »

For most loans in England and Wales the limitations period is six years. It starts at the point where the creditor has a cause of action, this means the point at which he could sue you. If you are paying a debt normally, you cant be taken to court for it. So it is only when you have missed a payment to a debt that this 6 year period starts.

So in your case the date of the first missed payment would be the cause of action date, and the time clock started ticking.

This, except for some nit-picking, is my understanding of the Limitation Act too.

TMO wrote: »

So if the first payment due date was 27 may and I never paid it, and never paid anything since then does that mean it's statute barred now? even though I did send them emails after missed payments telling them I dispute the loan and they put a default on cra after it?

If you are saying that the payment due date was 27 May 2012, you are in England/Wales and your emails said that you disputed liability, then I believe it would now be statute barred. If they started a claim now, you would have a defence.

That doesn't mean 100% that your defence would be successful as there are many district judges who just 'take a position' on things depending on how they feel on a particular day. Or so it seems.

[Deleted User]

nsomnia wrote: »

There is no such thing as statute barred debt

Apart from the millions of pounds worth of statute barred debt out there.

fatbelly

nsomnia wrote: »

There is no such thing as statute barred debt, 3 months before any debt is due to become such a thing, it will be sold to another bunch of leeches and the clock is reset.

Even Lowell don't try that argument.

sourcrates

nsomnia wrote: »

There is no such thing as statute barred debt, 3 months before any debt is due to become such a thing, it will be sold to another bunch of leeches and the clock is reset. If anyone has lead you to believe ignoring your debt will make it go away after 6 years (I've been waiting 15) then you are liable to have as bad a life as I have.

That's what I get for following stupid advice on these forums.....

To be clear, Sale of a debt does not re-start the limitations clock.

Only payment or written acknowledgment by the debtor does that.

asmwp

nsomnia wrote: »

There is no such thing as statute barred debt, 3 months before any debt is due to become such a thing, it will be sold to another bunch of leeches and the clock is reset. If anyone has lead you to believe ignoring your debt will make it go away after 6 years (I've been waiting 15) then you are liable to have as bad a life as I have.

That's what I get for following stupid advice on these forums.....

Maybe there is a misunderstanding of what statue barred actual means here. You are correct in so far as the debt effectively never goes away HOWEVER it does mean that the creditor will be unable to enforce it via a court of law.

"In England, Wales and Northern Ireland: If a creditor waits too long to take court action, the debt will become 'unenforceable' or statute barred. This means the debt still exists but the law (statute) can be used to prevent (bar) the creditor from getting a court judgement or order to recover it."

[Deleted User]

nsomnia wrote: »

There is no such thing as statute barred debt, 3 months before any debt is due to become such a thing, it will be sold to another bunch of leeches and the clock is reset. If anyone has lead you to believe ignoring your debt will make it go away after 6 years (I've been waiting 15) then you are liable to have as bad a life as I have.

That's what I get for following stupid advice on these forums.....

You didn't pay back the money YOU borrowed and THEY are the leaches?