Statue Barred Time Limits and Debt Admission through Payment Plan?

superpain

Hi everyone, 

I have read some excellent advice on here and hoping someone may be able to guide me through my situation to make sure it doesn't get worse.

I accidently set up a payment plan yesterday for a debt which was defaulted on 30th September 2020. As this debt was accrued in Scotland I believe it should be stature barred. However the debtors are claiming a payment was made in July 2021 (however I believe this to be an error as it was an overdraft account and someone may have paid into it without knowing). I’ve cancelled the PP with the debtors and put the account ‘on hold’. I did this over the phone.

My questions are:

Have I admitted to the debt with the PP?

Does the Scottish limit apply if I live in England? (I moved here 3 years ago).

What are my next steps? Should I wait and send an SB letter or ask them to prove the payment.

I’m trying to get my finances in order for a potential financal check needed for work so any advice is very much appreciated.

sourcrates

The law of the land you live in applies at all times, so if you live in England, English law will apply, namely the Limitation act 1980.

You have to acknowledge a debt in writing or by payment made by yourself or your agent, to reset the limitation period, every time you mention the debt in a letter, it will reset the clock.

For this account, the limitation period runs out 30th September 2026, according to your dates.

And just for information purposes, you are the debtor, the lender is the creditor.

superpain

Okay, at least I haven't acknowledged the debt then. I did tell them (over the phone) that I needed more information and they said they would hold my account. Would this also hold the limitation period?

They also stated that a payment was made in July 2021, but I believe this to be an erroneous deposit by a family member who used my old bank details. Do you believe it would be worth sending a prove it letter? Providing that it doesn't reset the limitation period?

Thanks for your input on this.

sourcrates

You must acknowledge the debt in writing to re-set the limitation period, I would not send anything at all.

Any payment must be made by you, or your authorised agent, if you did not make the payment yourself, or authorise a 3rd party to do so on your behalf, it does not re-set the clock.

Have this argument with them after September 30th this year, until then say and do nothing.

superpain

Thank you, that seems like the best course of action.

I am most likely moving back up to Scotland by the end of July too so that will put an extra spanner in their works.

Thanks again for all the good work you are doing here :).