Statute Barred

[MarkM7]

Hi,

 

I wonder if someone could help me. My brother had a debt with a credit card provider that defaulted in 1995 and since then he has heard nothing about the debt. He recently received a letter from a debt collection agency asking for payment in full so he contacted them and arranged a settlement figure of which he paid half. After speaking to some of his friends he was informed that he should never have paid the debt as it was statute barred so he is now trying to claim the money back from the debt collection agency who are refusing.

 

Because he paid something to the debt does that reset the period of liability and the debt is no longer statute barred?

 

My feeling is that the debt is statute barred, although still his, and he has just lost a fair bit of money!!!

 

Can anyone help?

[flyingdoc]

Sadly in paying them he admitted the debt and has reset his statute clock to 0, now not only can he NOT claim back the money he has paid he is also liable for the rest of the debt which he has acknowledged by paying anything at all.

[lickthewallfatboy]

afraid you're mistaken

 

once a debt is statute barred...ie past the 6 years,NOTHING can unbar it

 

your friend can stop paying and tell them to sod off-I don't know if he can claim back what he foolishly paid out though

[pmhcfc]

Sadly in paying them he admitted the debt and has reset his statute clock to 0, now not only can he NOT claim back the money he has paid he is also liable for the rest of the debt which he has acknowledged by paying anything at all.

 

1208 posts and you're posting this??? Haven't you learnt anything?

 

Once Statute Barred, always statute barred - nothing resets it. As for the money he's already paid, that can't be reclaimed. Although debts are statute barred they can still be collected, that's if the person who owes the money chooses to pay it back - the courts can't make them.

 

**edit...Just to elaborate a little...Depsite the debt being statute barred, the money is still owing but there's nothing a DCA can do to legally enforce payment. If your brother has chosen to pay back a debt he owes, then that's up to him. Just out of interest, who is the DCA ? (one wonders if it's Ruthbridge)

Edited February 26, 2009 by pmhcfc

[dx100uk]

yep and get your moneyback else threaten court action.

they had no paperwork i bet either!

fraud springs to mind!!

 

dx

[MarkM7]

Thanks for the help guys. The DCA is response credit management.

[rory32]

Regarding getting your money back, when a debt is time barred neither party can take action through the courts. You may however be able to apply some pressure through the OFT and FOS and perhaps get the money back that way (probably doubtful unless you can prove unfair collection practices were used but still worth a try).

[flyingdoc]

The Limitations Act 1980 outlines the time limit within which a creditor can chase a debtor for outstanding debts. The Limitations Act 1980 only applies when no contact has been made between the creditor and debtor within the given time limit and only applies to residents of England and Wales.

Creditors are given a fixed period of time to chase their debtors, which is outlined in the Limitations Act 1980. The time scale mainly depends on the type of debt and can be extended at the courts discretion. The time limit begins when you last admitted owing the money or made a payment.

Should the creditor fail to maintain contact with the debtor, for a period of 6 years or more, it is possible to claim that the outstanding debt is "Statute Barred" under the conditions of the Limitations Act 1980.

The Limitations Act 1980 also has additional effects, depending on the type of debt in question:

Unsecured debt

 

You may have assumed that your creditor has "written-off" a debt if you have not heard from them for a long period. In many cases, it could be down to your failure to inform them of a change of address, but the debt will still exist and creditors are entitled to chase the debt indefinitely (even after the debt has become Statute Barred), however they can only use the legal system to recover the monies for up to 6 years after the last payment was made to the account.

Remember, creditors are still able to pursue an unsecured debt if:

• They have previously obtained a judgement against you (a CCJ);
  
• You have made a payment to the account within the last 6 years (this includes anyone else named on the credit agreement)
  
• You have established any contact with the creditor (this can be a phone call or letter to request a balance or change your details), except to deny that the debt exists.
  

If a creditor continues to contact you after accepting that a debt is Statute Barred and you have stated that you no longer intend to pay the debt, you may be able to claim harassment contrary to section 40 (1) of the Administration of Justice Act 1970.

[flyingdoc]

If a payment is made after a 6-year gap, the Limitations Act 1980 is still enforceable and the debt remains Statute Barred. However, in this instance, it is unlikely that you will be able to claim back any payments made after the 6 years from the creditor because you still owe them the money.

 

the above post is quoted from payplan website

 

live n learn

[rory32]

the above post is quoted from payplan website

As is the one below:

 

If a payment is made after a 6-year gap, the Limitations Act 1980 is still enforceable and the debt remains Statute Barred. However, in this instance, it is unlikely that you will be able to claim back any payments made after the 6 years from the creditor because you still owe them the money.

[flyingdoc]

As is the one below:

 

 

I know - I quoted it in the one above

[pmhcfc]

Thanks for the help guys. The DCA is response credit management.

 

Wow - wonder where these guys sprang from - RCM are part of a 118 strong group which includes the likes of Rangers Football Club

[rameses_qc]

It's a fact. If you pay any money on a statute barred debt, you CANNOT reclaim the payment.

[tracyab1972]

I am in the same boat. I paid them £2 to enable a DD to be set up. I have cancelled the DD and sent a letter to the DCA today via recorded delivery stating that the debt is statute barred. I am fairly confident that the will reply with something along the lines of 'yes you do still have to pay'. If this is the case is there any template letters that can be sent to tell them to b*****r off?

[sam614]

I am in the same boat. I paid them £2 to enable a DD to be set up. I have cancelled the DD and sent a letter to the DCA today via recorded delivery stating that the debt is statute barred. I am fairly confident that the will reply with something along the lines of 'yes you do still have to pay'. If this is the case is there any template letters that can be sent to tell them to b*****r off?

 

 

send this hun STATUTE BARRED F OFF:D