unchased debt....

maxmycardagain

Is there really a 6 year "no contact" limit on creditors chasing a debt? (not bankrupt)

sourcrates

Google "limitation act" its been policy since 1980.

Section 5 states - 

(5) Time limit for actions founded on simple contract.

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.

Surely you must have heard of it max ?

Limitation Act 1980 (legislation.gov.uk)

fatbelly

maxmycardagain said:

Is there really a 6 year "no contact" limit on creditors chasing a debt? (not bankrupt)

Sort of.

It's more definite under Scottish law. There if there has been a six-year period of no acknowledgement by payment or in writing then the debt is 'extinguished'

Under England/Wales law, if there has been a six-year period of no acknowledgement by payment or in writing, then the debt becomes 'statute barred'. This means that you have a complete defence if a court claim is started. The creditor is allowed to continue to ask for payment but should not start court action.

However, there is separate guidance under CONC7 that says that if you tell a creditor that you will not be paying because the debt is statute barred then they must cease collection activity.

maxmycardagain

sourcrates said:

Google "limitation act" its been policy since 1980.

Section 5 states - 

(5) Time limit for actions founded on simple contract.

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.

Surely you must have heard of it max ?

Limitation Act 1980 (legislation.gov.uk)

So its what, 6 years from last contact or 6 years from the cause of the outstanding balance?

maxmycardagain

"from the date on which the cause of action accrued"

lets suppose, for the sake of convenience...

Car finance taken out 1st Jan 2016

Payments defaulted 1st jan 2018

Car repossesed 1st April 2018

Car sold at auction May 2018

Outstanding balance advised 1st June 2018

Last communication by DCA  1st June 2019

When would the 6 year countdown start?

sourcrates

The cause of action date, as clarified by a court ruling, would be the date of default, so in the example above, it would be 6 years from the 1st Jan 2018.