Statute Barred Debt Lowell (Part II)

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  • sourcrates
    sourcrates Posts: 28,878 Ambassador
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    Okay, I've had a new letter from Lowell claiming that it is not statute barred. Their reasoning:

    "Section 5 Limitations Act 1980.
    An action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.
    The date the cause of action accrues, in this matter on the expiry of the fixed sum loan agreements.

    The Facts

    Date of Agreement Expiry of Agreement

    16/6/2010 10/4/2013
    14/9/2011 14/9/2012


    Is this correct?


    What type of debt was it originally ?
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • GothicStirling
    GothicStirling Posts: 1,157 Forumite
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    Provident Doorstep.
  • fatbelly
    fatbelly Posts: 20,492 Forumite
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    fatbelly wrote: »
    Let's see what nonsense they come up with when you put in a defence.
    The date the cause of action accrues, in this matter on the expiry of the fixed sum loan agreements.

    The Facts

    Date of Agreement Expiry of Agreement

    16/6/2010 10/4/2013
    14/9/2011 14/9/2012


    Is this correct?

    Of course it's not. If you had paid up to the date the agreement expired, there would be no debt!

    I thought at least they would invent a payment or find some obscure caselaw.
  • GothicStirling
    GothicStirling Posts: 1,157 Forumite
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    Thanks. So Cause Of Action started the week after my last payment/default on 1/11/11, when I moved home (which I advised Provident of). My contract clearly states "repayments of £5.25 for 50 weeks from the date the agreement was made with agent (30/9/11)." So they can't start to argue now that there is no set date for repayment?

    What !!!!es me off, is that my sister took a loan the same day, but has a letter saying that they are no longer pursuing the debt and have closed the account. Why are they then pursuing me through the courts?

    What is my next move?
  • sourcrates
    sourcrates Posts: 28,878 Ambassador
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    fatbelly wrote: »
    Let's see what nonsense they come up with when you put in a defense.


    And, as Lowell are never one to let us down, here it is................


    I see these so called reasons why a creditor believes a debt is not statute barred, and i swear most of these decisions are made by 12 year olds on a school project.


    In your case, the cause of action date, is the date of your last payment, or for arguments sake, when the last missed payment became due, stick to your defense, there entire mission now is to cast doubt in your mind..................do not let them succeed.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • GothicStirling
    GothicStirling Posts: 1,157 Forumite
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    Thanks, I won't.
  • WillGoodfellow
    WillGoodfellow Posts: 32 Forumite
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    edited 24 June 2018 at 1:12PM
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    Okay, I've had a new letter from Lowell claiming that it is not statute barred. Their reasoning:

    "Section 5 Limitations Act 1980.
    An action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.
    The date the cause of action accrues, in this matter on the expiry of the fixed sum loan agreements.

    The Facts

    Date of Agreement Expiry of Agreement

    16/6/2010 10/4/2013
    14/9/2011 14/9/2012


    Is this correct?


    Statute barring is calculated from the date of the default notice, not the end of the agreement or the date of the last payment (unless you have made a payment since the default or admitted the debt in writing). You can request the default date from Lowell or request a statutory credit report from Equifax, Experian or Callcredit which is now free since the GDPR was introduced. Your credit report will show the default date if it is within the last six years.
  • WillGoodfellow
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    What !!!!es me off, is that my sister took a loan the same day, but has a letter saying that they are no longer pursuing the debt and have closed the account.


    If your sister defaulted on the account earlier, the statute barring date would also be earlier.
  • sourcrates
    sourcrates Posts: 28,878 Ambassador
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    Statute barring is calculated from the date of the default notice, not the end of the agreement or the date of the last payment (unless you have made a payment since the default or admitted the debt in writing).


    It can depend on the type of debt, but essentially that is not normally the case.


    The time clock normally starts either from the date of last payment or written acknowledgement, or the date of your last missed payment.


    It is a myth perpetrated by companies such as Lowell that the default date constitutes the cause of action date, that can be the case with some debts, for example an overdraught where you do not make any regular payments, but for most simple contract debts the former applies.


    https://www.nationaldebtline.org/EW/factsheets/Pages/time-limits-for-recovering-debts/statute-barred-debt.aspx
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • WillGoodfellow
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    Yes, from the date of the default rather than from the date of the default notice as I stated. That default date can be written in to the contract i.e. 6 weeks from the date of due payment. It is not so quite clear cut that this debt is statute barred as suggested.
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