CCJ Threat - Help!!

rosebud84

In 2007, I was issued with a default for a mobile phone bill I didn’t pay. The total amount was £360

It was referred to debt collection, but stupidly I ignored this and didn’t pay it off.

In 2013, I was contacted by a debt recovery chasing me for the outstanding amount.
At the time I was out of work due to health reasons, and couldn’t afford to pay,
I was told if I didn’t offer something I would be given a CCJ.
I agreed to make payments of £1 per month!!

In 2017, the recovery agency contacted me and asked me to provide my income and expenditure.
I did this and they told me I had to pay more than £2 a month.

At this time I got advice from a debt charity who advised me to stop paying the debt as it was more than 6 years old and I didn’t have to pay.

I stopped paying and had a couple of chase letters, but they soon stopped.

In January this year; I had a letter from a socloatpr stating the debt had been passed to them.
I ignored this based on previous advice, but this week I have now had county court claim forms issued.

Can anyone please advise where I stand with this?
Can the judgment be issued for a debt that is 12 years old?

BoGoF

The debt charity was wrong - the debt was not statute barred as you had been making payments towards it up to 2017.

So yes, you can end up with a CCJ

rosebud84

The advice the debt charity gave me was that in from 2007 (when the default was issued) unti 2013 I didn’t a payment, make when I made my first payment, the debt was already statute barred and therefore I shouldn’t have paid anything.

Karonher

Was it at least 6 years? The month of the default and the month you agreed to repay could mean that it is technically less then 6 full years.

rosebud84

The month of the default was 12th July 2007.
The first payment of £1 I agreed to make was on 9th August 2013.

fatbelly

rosebud84 wrote: »

In 2007, I was issued with a default for a mobile phone bill I didn’t pay. The total amount was £360

It was referred to debt collection, but stupidly I ignored this and didn’t pay it off.

In 2013, I was contacted by a debt recovery chasing me for the outstanding amount.
At the time I was out of work due to health reasons, and couldn’t afford to pay,
I was told if I didn’t offer something I would be given a CCJ.
I agreed to make payments of £1 per month!!

In 2017, the recovery agency contacted me and asked me to provide my income and expenditure.
I did this and they told me I had to pay more than £2 a month.

At this time I got advice from a debt charity who advised me to stop paying the debt as it was more than 6 years old and I didn’t have to pay.

At the time, the debt charity would have been pretty confident they were correct as the 'cause of action' was held to be a missed contractual payment and the Limitation Act gives 6 years to start a court claim. After that the right of action is barred and 'a right of action, once barred, cannot be reinstated'

rosebud84 wrote: »

The month of the default was 12th July 2007.
The first payment of £1 I agreed to make was on 9th August 2013.

If the contract was terminated on 12th July 2007, and if you did not acknowledge the debt by payment or in writing till 9th August 2013 then they are out of time to start a court claim.

The relevant paragraphs are

Limitation Act 1980 s5:

An action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.

Limitation Act 1980 s29(7):

a current period of limitation may be repeatedly extended under this section by further acknowledgments or payments, but a right of action, once barred by this Act, shall not be revived by any subsequent acknowledgment or payment.

Quoting that, and giving the relevant dates, should be a complete defence.