Statute barred

zosie66

Hi
I had a letter this morning asking for £3500 with the last contact being in 2002. I didnt have a clue who the creditors were so I phoned to enquire. I discovered that yes it was my debt from a previous relationship so thought I was liable regardless. I asked what my options were and they said to either pay by monthly installments or pay a one off sum at a discount of 50%. I have since this telephone call discovered the Limitations Act and that my debt would fall within this criteria. I have a few questions that I am hoping that someone can answer for me:

1. Because I made contact by telephone and said that the debt was mine does that mean I have admitted the debt even though it is not in writing???

2. If I manage to get the statute barred status on this debt I appreciate that they can no longer chase me for this debt but does this mean that it remains as unpaid and will still show on my credit rating as unpaid - and if it does how long will it remain there???

What a pickle!!!

Thanks in advance for your help....
Zoe

RAS

The words "in writing" mean just that. A telephone call is irrelevant whatever the DCA say.

This debt will have been defaulted between 3-6 months after you stopped paying (or should have been). Unless it actually shows now on your credit record, then they cannot do anything.

If is is statute barred, it should have fallen off your credit record.

The one fly in the ointment is if this debt was joint and your ex partner paid in the last 6 years.

You will only find out if you send the statute barred letter.

fermi

Statute barred debts - Limitations Act 1980

zosie66 wrote: »

1. Because I made contact by telephone and said that the debt was mine does that mean I have admitted the debt even though it is not in writing???

No. A telephone call does not count as acknowledgement.

Plus, once a debt has become statute barred it remains that way permanently. Later acknowlegement after the 6 years are up will not prevent the debt being statute barred.

2. If I manage to get the statute barred status on this debt I appreciate that they can no longer chase me for this debt but does this mean that it remains as unpaid and will still show on my credit rating as unpaid - and if it does how long will it remain there???

No. The debt can only be reported on your credit reference for six years from the default date. If the debt is statute barred then those six years will have passed or will very soon pass.

If no default was ever registered on your files, they are not now entitled to register one after all this time.

What a pickle!!!

Thanks in advance for your help....
Zoe

Hope that helps.

Send them the letter in the post by RAS recorded delivery.

If they cause any problems after they have received that, then there is a follow up letter.

EDIT: Thanks RAS.

rog2

zosie66 wrote: »

1. Because I made contact by telephone and said that the debt was mine does that mean I have admitted the debt even though it is not in writing???

2. If I manage to get the statute barred status on this debt I appreciate that they can no longer chase me for this debt but does this mean that it remains as unpaid and will still show on my credit rating as unpaid - and if it does how long will it remain there??? Zoe

Hi Zoe - first of all the acknowledgement must be in writing, and even then within the Limitation Period, in order to 're-start the clock'. So do not worry about what you agreed to on the phone - it will make no difference to the 'status' of the debt.

I would, simply, send off the 'Statute Barred' letter, using the template letter that RAS has posted above. For an overview on liability for debts and the Limitation Act, have a look at the following NDL link:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

It will, then, be up to the creditor/dca to prove that the debt is not Statute Barred - either by proving that you made a payment towards it, or acknowledged it, in writing, during a six year period of your last payment/acknowledgement.

Equally, once you have told the creditor/dca that you will not be making any further payments towards the debt, because it is statute barred (the ONLY reason you need give) then that creditor/dca should cease all further attempts at pursuing that debt:

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

The 'debt' is not 'written off' but is unenforceable through the courts, and no 'default' can, now, be entered on your crf. Any 'defaults' originally entered should have fallen off your crf by now.

zosie66

Thank you thank you thank you thank you. I really can't say that enough. I had got myself into a bit of a pickle this morning over this and you have made me breathe again. I will be sending a letter to them this afternoon recorded delivery to await their reply.

Basically it would be that you will still owe them the money but they can't ask you for it again and it wont show up on your credit file.

You have all been so helpful. Thanks again.

Zoe

RAS

zosie66 wrote: »

Basically it would be that you will still owe them the money but they can't ask you for it again and it wont show up on your credit file.

Correct if this debt is in your sole name and there is no CCJ. But even a CCJ would need court permission to pursue after this time.

Tobyjft

Following on this thread I hope someone may be able to help.

I have been contacted by Aktiv Kapital relating to 2 alleged accounts with Halifax. After a lot of pressure last year (during a difficult time due to personal reasons) when I was told be them that I had to pay them I started making payments. This year during a "spring clean" of my finances I have got a full credit report which shows no outstanding debts / CCJs etc...

I know that I have had no contact with Halifax since approx 2001/2002.

I sent the standard letter to Aktiv on 10/03/09 and have continued to get phone calls from them - last nights informed me that I must send a different letter for each account (which I am now doing) and this mornings was from a man who told me:
"there is no time limit to us providing you with the paperwork" "if you have made any payment then that is legally binding acknowledgement of the debt" "we will continue to call you untill you settle this" "don't take the advice of the CAB as they do not know about this"

I consider this to be harassment, I have had to change my bank account as they keep trying to take money from me.

My questions are:
- Is there a time limit from me saying I don't recognise the debt to them providing proof?
- As payment was made (under duress) are they now entitled to claim the debt as being "live"?
- Is there anything that I can do (short of changing my number and moving house) to prevent them hassling me?

Thanks

RAS

Toby

We need to know the date when you last paid anything to the creditor (prior to 2008) and the date in 2008 when you started paying them again.

The stuff re no contacting CAB is really out of order, even if you have unfortunately paid within the 6 year time limit (assuming you are in England and Wales).

If the debt is still statute barred, then you might be interested to note that MH were given guidance this week on chasing statute barred debts and if they do it again they will be fined or lose their licence. So the DCa are playing with fire.

Tobyjft

Thanks - aftwer a further call from them just now I eventually spoke to Malcolm in complaints who seemed slightly concerned when I recounted the facts and indicated that he would write to me "in a few days" once they had "obtained the necessary paperwork".

I know that there was no contact with Halifax subsequent to March 2002.

AK have told me that I made a payment to them on the account in December 07 - this may be right as I have not yet checked my details fully at home. Will this have an impact - I assume this means I acknowledged a debt regardless of whether I have been pressured into it (their current tactics appear to be testament to their techniques).

rog2

Tobyjft wrote: »

"we will continue to call you untill you settle this" "don't take the advice of the CAB as they do not know about this"
- As payment was made (under duress) are they now entitled to claim the debt as being "live"?
- Is there anything that I can do (short of changing my number and moving house) to prevent them hassling me?

Thanks

Providing that a 'Limitation Period' of six years (five in Scotland) had elapsed, during which you made no payment to, or written acknowledgement of, the 'debt' then the debt is Statute Barred. If you made a payment outside of the limitation period this will not afftect the status of the debt.

For their comments (highlighted above) you should report them immediately to Trading Standards.