Limitation Act and cause of action.

[Ian-veg-plot]

A creditor is taking me to Court even though there was no contact from me nor acknowledgement of the debt for more than six years. I intend to use the Limitation Act defence and say the claim is statute barred.

 

The other side say that the six year period starts when the default notice is issued (which I did not receive) and I say the period starts when a required payment is missed. Does anyone have any thoughts/knowledge/hints or tips on such a matter please? All advice gratefully received. Thank you.

[Michael Browne]

AFAIK The 6 years go from when you last acknowledged the debt in writing or made a payment ie if you have not acknowledged the debt or made a payment since February 2002 the Limitation Act applies

[Filthy Monkey]

The other side say that the six year period starts when the default notice is issued (which I did not receive) and I say the period starts when a required payment is missed.

 

That's nonsense. It starts from when you last serviced the debt or contacted the creditor in a manner that would suggest that you acknowledge the debt. If it were down to the date the default was issued, a DCA could simply buy a debt, issue a default one day inside the limitation period and restart it. Obviously, all of this is irrelevant if they have already obtained a judgement, but if not, you have nothing to worry about. I'd be surprised if it even makes it to court, but you should have no problem stating a defence based on the Limitation Act 1980, paragraph 5, I believe.

[Filthy Monkey]

Just a thought - If they continue to chase this debt after you have stated that it is statute barred and that you have no intention to pay it, you should advise them that you may be able to claim harassment contrary to section 40 (1) of the Administration of Justice Act 1970.