HELP! - Re: The 6 year rule....

mbamick

I've only scanned through this article, but note that there are several posts that refer to a US article. Given that we are subject to English law, I thought it might be useful to point out that it is The Limitations Act 1980 that gives creditors a maximum amount of time to start legal proceedings after the last payment or written contact from the debtor.

For most debts, this is six years, or 12 years for mortgages. If you have not paid anything towards a debt or 'acknowledged the debt' in writing (for example, by writing to the creditor about the debt) for more than six years, you should get specialist advice before you speak to the creditor about an arrangement to pay what you owe.

I help a friend with a problem [which wasn't debt-related, but the same legislation applied], and the company swore blind that they had dispatched letters within the 6-year period. When I asked them to provide proof of delivery, it obviously wasn't available. The case went to Ombudsman, who found in my friend's favour.

tinalives

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Harassed_2

Pity I didn't see this thread earlier. Thames are well known for 'sharp' practice to put it politely. Their last owner ended up in court in Norway for tax evasion and fraud. I would suggest that, to put a cap on their nonsense, send the letter below together with a £1 postal order. Send it by Recorded Delivery. Ignore the rubbish about ID.

I do not acknowledge ANY debt to your company. I require you to supply the following documentation before I will correspond further on this matter.

1. You must supply me with a true copy of the alleged agreement you refer to. This is my right under your obligation to supply a copy of the agreement under the legislation contained within s.78 (1) Consumer Credit Act 1974 (s.77 (1) for fixed sum credit) - your obligation also extends to providing a statement of account. I enclose a £1 postal order in payment of the statutory fee, PO Serial Number xxxxx.

2. A signed true copy of the deed of assignment of the above referenced agreement that you allege exists.

3. You are notified that you are obliged to supply these documents, whether you are the original creditor or not under S189 of the CCA 1974.

Non-compliance with my request is a criminal offence under the above Act and will result in a report being submitted to the relevant statutory authorities.

As you are aware, a credit agreement that is not properly documented and signed by the customer is totally unenforceable under the CCA and therefore is a complete defence to any court claim that is issued.

Take note at this stage, that any legal action you may contemplate will be both vigorously defended and contested.

They have 12 days to supply the copy agreement. If they don't supply it within 30 days, they commit a criminal offence. If they don't supply by 30 days report them to both the Office of Fair Trading and your local Trading Standards office.

As to the 'default', that can be sorted when the copy agreement surfaces (or doesn't).

sportbeth

tinalives wrote:

Thanks, that's very interesting.

I didn't think it was 6 years from THEM sending you letters anyway though - how is that counted as acknowledgement of the debt by YOU (even if they could prove delivery)?

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I just re-read that one and panicked a bit too, but if you look at the term "debtor" that would be you sending the letter to them as you are the debtor, not them sending letters to you.

Otherwise all sorts of stuff could happen with dodgy collectors if it was the other way around!

tinalives

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tinalives

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mbamick

tinalives wrote:

No, I got THAT bit, it was THIS bit that got me wondering:

Sorry for any confusion, Tinalives.
I did mention in my original post that, although the Limitations Act can be applied equally to your debt-related problem, my friends was an issue over pension misselling.

I don't want to over-complicate this thread, but the Company tried to apply the Limitations Act in reverse to our circumstances. They stated that they had issued letters to my friend pointing out his pensions shortfall and his rights to redress, and that he had ignored them. More than 6 years had passed, the limitations Act applied, so they had no liability to consider his complaint or offer compensation.

I successfully argued that he hadn't received the notifications; he was unaware of the potential shortfall, and that the 6-year rule within the Limitations Act only begins from the point at which the individual becomes aware of the problem.

As I said, sorry for confusing the issue. I was only trying to steer you in the direction of some relevant legislation. In hindsight, I should have left the confusing scenario out.

tinalives

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Harassed_2

If they write to me again I'm going to try sending your version of the letter.

Yes, do. You have to enclose £1 to make it official and send it Recorded so you have a record of its receipt.

If they don't supply, it's then a criminal offence. Next step after reporting them is to contact the Information Commissioner (not Experian) who will investigate.

phatbear

Great thread by the way but one more question, it was mentioned that the company have to prove that they have written to you, alas my mother, whos address I was at one point living at, was sending all the letters back to them as "no longer at this address" because I wasnt, would this constitute contact?? and if so does the 6 years start running from the time she stopped sending them back to the companies. Oddly enough I currently have a company chasing me for a debt which no longer appears on my credit history and before I write to them to tell where to go I want to make sure my footing is solid.

All the best

The Bear