Loan Debt becomes null and void?

[Barobalti]

Just when I thought it was safe to go back into the water… the Cabot ogres are pursuing me once again…

I there a ruling, subject to Scots or UK Law whereby a loan debt becomes “null and void” after (as I recall) 6 years? Does the loan commencement date “refresh” when a DCA takes it over?

Thanks,

[rory32]

I believe what you are refering to is The Prescription and Limitation (Scotland) Act 1973 Part 1 Section 6 "If, after the appropriate date, an obligation to which this section applies has subsisted for a continuous period of 5 years:

(a) without any relevant claim having been made in relation to the obligation, and
(b) without the subsistence of the obligation having been relevantly acknowledged,
then as from the expiration of that period the obligation shall be extinguished:"

[Barobalti]

Originally Posted by rory32

I believe what you are refering to is The Prescription and Limitation (Scotland) Act 1973 Part 1 Section 6 "If, after the appropriate date, an obligation to which this section applies has subsisted for a continuous period of 5 years:

(a) without any relevant claim having been made in relation to the obligation, and
(b) without the subsistence of the obligation having been relevantly acknowledged,
then as from the expiration of that period the obligation shall be extinguished:"

That looks just fine, Rory, and many thanks. Is there a break-down somewhere of what this actually means in layman's terms, etc?

[rory32]

Basically what it means is if you haven't acknowledged a debt for 5 years (acknowledgement would be making an offer of payment in writing or making a payment towards the debt) and they haven't enforced the debt through the courts then no court action can now be taken and you have no obligation to pay the debt.