Time limits

Kay

How long after you have accrued a debt can you be chased for it? I was under the impression that if the lender has not contacted you for six years, then they were out of time to reclaim it.

I have a Barclaycard debt of £1100 from 1994. They sold this debt to a collection agency and they have sent me a bill today for £1600. This is the first time I've been contacted over this debt - surely they can't chase me for a 14 year old bill can they? I haven't yet admitted it was mine - the info they have for it is wrong - they're saying the debt was from 1994 but have said it was applied for from an address I was at in 2002.

Do I hold my hands up to it or should I contest it?

GingerSte

Hi Kay.

I think the debt may be statute barred but I don't know the ins and outs, so I'm just bumping up this thread so one of the more knowledgable nerds can answer.

I hope it gets sorted out soon for you though.

GeorgeUK

If you haven't made any payment towards the debt and not acknowledged the debt IN WRITING within the past 6 years, then the debt is statute barred.

I would suggest writing a letter to the DCA stating that the letter is statute barred - but do not sign the letter. (Some have been known to use photoshop!!)

These threads should hopefully help a bit.
http://forums.moneysavingexpert.com/showthread.html?t=578486
http://forums.moneysavingexpert.com/showthread.html?t=648973

If the DCA states that the debt is not statute barred, then you can request a copy of the CCA and Deed of assignment. If they can't produce this, then you don't need to pay. A CCA is not required for an overdraft, but we can tackle that later if it becomes relevent.

fermi

Sounds like the debt is definitely "time barred" under the relevant limitation act, if you haven't acknowledged it in writing or made a payment in 14 years.

Have a read through the information in one of these two links depending on whether you are in England/Wales or Scotland.

Link: Factsheet | Liability for Debts and the Limitation Act (England/Wales)

Link: Factsheet | Liability for debts & the Prescription & Limitation (Scotland) Act 1973

You can then send them the letter at the end of the factsheet by recorded delivery.

That should be the end of it.

You may get a letter after that whining about "moral obligations to pay" and that they will "refer the matter to their legal team to consider action".

If the debt is "time barred" the only action their legal team is legally entitled to take is to file it in the cabinet marked "unrecoverable debt". The law is very firmly on your side.

Kay

Many thanks for this, has put my mind at rest. I've certainly never acknowledged them in over six years and I'm sure they've not been to court over it as I've not had problems obtaining credit. Is there any way of being sure there's no court order before I take action?

By the way, probably me being thick, but what/who is the DCA?

fermi

DCA = Debt Collection Agency

If there was a current CCJ in force then they would have threatened enforcement of this already I would have thought.

While the "statute barred" rule doesn't apply to to a CCJ, after 6 years they would have to apply to the court to re-register it in order to enforce it. The court would only allow this if they could show a very very good reason why they didn't try to act on the original.

So the debt is either properly "time barred", or they have an old CCJ they would find it almost impossible to enforce.

I would just send them the letter advised in the links and see what they have to say, if anything.