Statute barred debt

Agent-007

I wonder if anyone can help me.

In 2014 I got a court letter at my old address telling me I had to attend court regarding old debt from 1998. I did attend the court as requested and I sat down in a small room going through my income and expenditure and coming to some arrangement to pay something towards the debt on a monthly basis. I started paying this monthly amount until I came across 'Statute Barred', which is something I'd not heard about when I was sat in that court room going through my incomings and outgoings. I telephoned the creditor and told them that I had found out about statute barred and that it shouldn't have been enforceable. All I got was a woman telling me that it was a good trick that they had played on me into getting me to pay up. I was livid to hear this remark and from this point I decided to stop paying it.

I have since moved house and out of the blue I got a letter last week from a debt collection agency acting on behalf of the creditor, saying they were trying to trace me. I didn't know what the letter was about so ignored it to see if I would get a further letter with more detailed information. Today I did receive the follow-up letter stating who I owed the money to and how much it was for (debatable). I am annoyed that all these years have passed and they're still hounding me for a debt that is statute barred (if this is still the case). I still want to ignore the letter as, not only should it be statute barred and that I should never have been made to make any payments, but also the letter is in my old married name, which I haven't used for 12 years.

Anyway I have read on the Internet some conflicting information in that some debt charity websites state that since I made a payment in 2014, albeit that it was statute barred, the clock will start ticking from that day in 2014 and won't be statute barred until 2020. Some websites say that even if I've made a payment on this historic debt, it is not enforceable and I can stop paying and just to ignore it. Some say if it went to court (2014) - 16 years after it should have been statute barred, it will never be statute barred. If this is the case I would have thought that the court wouldn't have even allowed the creditor to take me to court for a statute barred debt. Who is right? Can I just ignore it? Did the court appearance start the clock ticking again? I don't know what to do. All this is making my anxiety much worse.

Any help would be much appreciated.

Thank you.

fatbelly

1. A creditor has 6 years (England and wales) to commence a court claim for money due. The clock starts ticking when the contract is breached but is re-started if the debt is acknowledged. The rules are contained in the Limitation Act 1980

2. Acknowledgement can be by payment or in writing, by the debtor or 'his agent'. It can not be acknowledged by a verbal communication nor by any act of the creditor.

3. Once a 6 year period is up, the debt is said to be statute barred, that is any court claim can be fully defended.

4. Once a debt is statute barred it cannot be reactivated by a subsequent acknowledgement (LA 1980 s 29(7))

5. Once a judgement (ccj) has been granted, the rules in the Limitation Act cease to apply. However, it is possible for a judgement to be set aside if there is (a) a defence with a real prospect of success, (b) a reason why you did not respond to the original claim, (c) you act promptly

In your case you would need to look at the dates of

contract breach
subsequent acknowledgement
court claim

to know if you had any defence to the ccj worth attempting set aside

sourcrates

Going by the dates you have given, the debt would most likely of been statute barred by 2014.

Did you not receive court paperwork for this debt, a claim form ?

That would of been your opportunity to state the debt was statute barred.

A set aside may be an option, but after 4 years you would need a sympathetic judge in order to obtain one, and there is a cost of £255.00 involved.

Agent-007

Hi sourcrates

I got an official type court letter saying that I must attend. I didn't know anything about statute barred at that time so wasn't able to argue my defence. I guess the creditors played on the fact that I may not know anything about the Limitations Act.

Agent-007

fatbelly wrote: »

1. A creditor has 6 years (England and wales) to commence a court claim for money due. The clock starts ticking when the contract is breached but is re-started if the debt is acknowledged. The rules are contained in the Limitation Act 1980

2. Acknowledgement can be by payment or in writing, by the debtor or 'his agent'. It can not be acknowledged by a verbal communication nor by any act of the creditor.

3. Once a 6 year period is up, the debt is said to be statute barred, that is any court claim can be fully defended.

4. Once a debt is statute barred it cannot be reactivated by a subsequent acknowledgement (LA 1980 s 29(7))

5. Once a judgement (ccj) has been granted, the rules in the Limitation Act cease to apply. However, it is possible for a judgement to be set aside if there is (a) a defence with a real prospect of success, (b) a reason why you did not respond to the original claim, (c) you act promptly

In your case you would need to look at the dates of

contract breach
subsequent acknowledgement
court claim

to know if you had any defence to the ccj worth attempting set aside

I don't even know if it was a CCJ. I just sat in a room with one other person discussing my finances. How can I be given a CCJ 16 years later? I thought they would have had to take me to court in first 6 years. If indeed they have given me a CCJ under false pretences, does this mean it will never be statute barred?

PixelPound

So 1998 was when whatever made the debt was taken out, or the date it was defaulted. At what stage was it in 1998 and what contact or payments were made after then?
People seem to focus on when it was opened and not when last payment/acknowledgement made. Otherwise anyone with a 25 year mortgage could simply stop paying half way through!!

sourcrates

Agent-007 wrote: »

Hi sourcrates

I got an official type court letter saying that I must attend. I didn't know anything about statute barred at that time so wasn't able to argue my defence. I guess the creditors played on the fact that I may not know anything about the Limitations Act.

Your only option now is this :


If there was a gap of 6 years or more since your last payment, and the action starting through the courts, then you need to fill in a general application form called an N244. You should fill in the N244 to include the information the court asks for. The following points may help you when filling in the form.



If the judgment is set aside then all enforcement action will then stop. Enforcement action will not stop automatically just because you have put in the application. It is important that you ask for any enforcement action to be stopped or;stayed until your application is heard. You should include this request on the N244 application form when you apply for the judgment to be set aside.

• Include the claim number of the case and details of the creditor or claimant
• Question 1: fill in your name here.
• Question 2: you will normally tick the box as the defendant
• Question 3: you need to briefly state what order you are asking the court to make and the reasons for your request.
• Question 4: this asks if you have attached a draft of the order you are applying for. I would suggest that you only tick yes to this if you have had help from a solicitor or advice agency with drafting the order. Otherwise, leave this up to the court.
• Question 5: this asks you if you want to have the application dealt with at a hearing. Most applications will be dealt with at a hearing.

• Question 6, 7 and 8: it is safer to leave these blank rather than guess how long a hearing will last or what level of judge you need at the hearing.
• Question 9: only fill this in if there is someone you want the court to send a copy of the application to, such as your solicitor.
• Question 10: this appears on the back of the form. You should tick the box saying you are relying on the evidence set out in the box below.
• You need to include any evidence you have to support your case, such as proof you have changed address or were out of the country. Any information you have about your possible defence should also be included. You should explain any delay in making the application.
• Sign the statement of truth on the bottom of the form.
• Send enough copies of the form by recorded delivery back to the court so that one can be sent to the 'claimant' (the person who has the judgment against you) and one for the court. Remember to keep a copy for yourself.

fees

There is a fee to pay for this type of application, Currently £255.00.
If you are on a low income or certain benefits you may not have to pay the fee.

The court will take into account how quickly you made the application and may want to know the reason for any delay, e.g. you only just found out about the judgment.

PixelPound

Agent-007 wrote: »

I don't even know if it was a CCJ. I just sat in a room with one other person discussing my finances. How can I be given a CCJ 16 years later? I thought they would have had to take me to court in first 6 years. If indeed they have given me a CCJ under false pretences, does this mean it will never be statute barred?

what happened between 1998 and 2014 in regards to the account? If you have a CCJ, the debt is enforceable under the CCJ, but you need to explain what happened between 1998 & 2014?

Agent-007

nic_c wrote: »

So 1998 was when whatever made the debt was taken out, or the date it was defaulted. At what stage was it in 1998 and what contact or payments were made after then?
People seem to focus on when it was opened and not when last payment/acknowledgement made. Otherwise anyone with a 25 year mortgage could simply stop paying half way through!!

I took the loan out in 1996, which defaulted in 1998. This is the last known time I have had any contact with them as I have moved several times over the years. Fast forward to 2014 when I received an official court letter saying I MUST attend court, to which I did. Agreed with whoever it was I spoke to at the courthouse to pay a monthly amount and kept to agreement for several months, but then fell on hard times and found out about statute barred.

Agent-007

nic_c wrote: »

what happened between 1998 and 2014 in regards to the account? If you have a CCJ, the debt is enforceable under the CCJ, but you need to explain what happened between 1998 & 2014?

I'd moved house over the years so had not heard from them during this period.

Agent-007

I have been looking on the Internet and found some information about what my court appearance may have been for. It would seem that it was an 'order to obtain information'. Has this got anything to do with a CCJ?