Statute of limitations on Debt ?

khdgsa

Hi Folks, I hope someone out there has a simple answer to this one.......

Am I right in thinking that if a debt (eg to a bank or credit card company) has not be recovered within seven years of default, it automatically becomes un-recoverable, and is written off ?

Thanks in advance for your input.

compulsivespender79

Hey,

Hope the below helps;

"Statute Barred

A debt is considered Statute Barred if a creditor has not contacted a debtor for a period of 6 years and no action has been taken on the account.
Although the debt is still legally acknowledged as being owed, the creditor is not able to take any legal action against the debtor in order to recover the debt. It is considered unfair if a creditor or debt collector misleads the debtor into believing the debt is still legally recoverable. It is also considered an unfair practice if the creditor or debt collector press for payment after the debtor has stated they will not be paying the money owed. This could amount to harassment contrary to Section 40(1) of the Administration of Justice Act 1970."

http://http://www.debtquestions.co.uk/legal_yourrights.php

Lizalu

I believe so, it's called statue barred -
http://www.hmrc.gov.uk/manuals/IHTmanual/IHTM28384.htm

If you search for statute barred within this forum, there are some letter templates you can send to get the companies to back off.

swt61

I have had many old Debts that have been sold on to Debt collection agencies But Unfortunately for me I have always been up front and tried to pay what I can currently under a D.M program I wish they could just be ignored as some are now over 4 or 5 years old and some not even on my credit file at all
Simon

RAS

Unfortunately, if you have been paying them under a DMP, then the statute barred rules does apply unless

there was a period of six years btween the time when you started paying them on the DMP and the last time that you paid or acknowledged the debt in writing prior to starting the DMP.

Also this does not apply to debts with CCJs or to mortgages, although most companies would not pursue debts after 6 years.

khdgsa

Thanks for your replies.

For part 2 of the question:
I've not paid a penny to this debt since I defaulted in 1999 (not something I'm proud of) and it is long gone from my Crdit File. But, it was sold to a debt collection agency (who gave up), who have now re-sold it to another agency (who are now beginning to chase). Does this mean the six years start again each time ???

Thanks Again.

fermi

khdgsa wrote: »

But, it was sold to a debt collection agency (who gave up), who have now re-sold it to another agency (who are now beginning to chase). Does this mean the six years start again each time ???

No the six years runs from the last time YOU acknowledged the debt in writing yourself or by making a payment.

How many times the debt has been sold on or passed from collection companies to others is completely irrelevant.

There is a factsheet on the Limitations Act in the link below. Have a good read through it. If you are in any doubt, contact National Debtline on the number provided. They are a free charitable advice organisation.

Link: Factsheet | Liability for Debts and the Limitation Act

dotstar24

hi

I got got my credit report a couple of months ago and I was very suprised at how clean it was. I owed £2500 to Hsbc for loan, £1000 hsbc overdraft, and £5000 alliance and leicester loan. I have moved around the country a lot, and was literally of no fixed address. so 3-4 yrs later i was suprised to see nothing on there about the 2 banks. a company has started sending me letters re hsbc loan. nowt serious, just please call us to arrange a payment plan for this very old debt. i haven't responded.

RAS

dotstar24 wrote: »

hi

I got got my credit report a couple of months ago and I was very suprised at how clean it was. I owed £2500 to Hsbc for loan, £1000 hsbc overdraft, and £5000 alliance and leicester loan. I have moved around the country a lot, and was literally of no fixed address. so 3-4 yrs later i was suprised to see nothing on there about the 2 banks. a company has started sending me letters re hsbc loan. nowt serious, just please call us to arrange a payment plan for this very old debt. i haven't responded.

Dotstar

Read the stuff in the links above. Unless there is a CCJ out on this, if it was 6 years since you last paid, it is almost certainly statute barred. I would not respond unless things get difficult.

Come back here for advice if needs be.

Paulneedshelp

wonder if someone can help me? i was made redundant in 2005 with a lot of debts outstanding. I got back on my feet a year later and was contacted by debt collection agencies whom i paid fpr fours untill i lost my house in 2009. Is my period of debt now renewed to 6 years having paid some money to the debt collectors or is it from the initial default date in 2005?

DarkConvict

If 6 years ha passed between payments it is statute barred, once statute barred always statute barred.

However if you made payments before the date, even be it 5 years 364 days later, you reset the clock for another 6 years.

Example for 3 single payments

If you last payment was 2005, sb date is 2011,
If you then made a payment in 2009, the sb date is 2015
If you make a payment in 2018, the sb date is 2015 as 2015 had passed.