1st Credit letter : Limitation Act and its own Limitations

[Ragandboneman]

Hello,

 

I received a letter from 1st Credit indicating I owe a large sum of money for a Credit Card/Bank Account .

 

The account is over 8 years old, and I haven't heard from the bank / debt collection company until now.

 

I think since I haven't heard from them, in these years, I could respond with reference to the Limitation Act 1980 stating the debt in unenforceable.

 

I have a question to ask, so I can be sure of my position.

 

1) I've moved flats 7 times since the last I heard from the bank; does the Limitation still apply if I haven't had any contact from either party because of this?

 

I have found on another forum, a piece of legalese within the act,

_

 

Section 32 of the Act:

 

©

the action is for relief from the consequences of a

mistake;

the period of limitation shall not begin to run until the plaintiff has

discovered the fraud, concealment or mistake (as the case may be)

or could with reasonable diligence have discovered it.

References in this subsection to the defendant include references to the defendant’s agent and to any person through whom the defendant claims and his agent

 

_

One poster claims that moving house without telling the bank can be seen as concealment.

 

Does anyone have any hard facts on this, and any advice as to how I should tackle this?

 

Thankyou

Edited July 25, 2009 by Ragandboneman

[pompeyfaith]

IMO my immediate thought is stat bared as it is over 6 years since you have heard from them but im sure someone will correct me if im wrong.

 

PF

[cerberusalert]

Just send them the SB letter; http://www.consumerforums.com/resources/templates-library/86-debt-collectors/599-letter-sent-when-debt-is-statute-barred The onus is on them to prove otherwise.

[Huff&Puff]

It's Stat Barred if you have not paid anything, or acknowledged the debt in writing, within the last 6 years. The reasons for not paying or not corresponding with them are immaterial.

[Bazooka Boo]

No, there is no need to worry, moving address will not be deemed as concealment, after all, you can't simply put your life on hold just because of a debt and the fact they might argue you were hiding:eek:

 

As you say, it is SB and the relevant letter should be sent to whatever DCA is chasing you for it.

 

The limitation act clearly states that the OC or DCA has six years (five in Scotland) in which to bring legal action (CCJ) against the debtor to recover the debt. Once this time has passed then the OC or DCA can still legally ask for payment but is unable to take any legal enforcement action to recover the debt.

 

Once a debt becomes statute barred it remains statute barred whatever then transpires. In other words the debt can never be legally chased through the courts again and nothing the debtor or any representatives do once the statute barring date has passed can alter this situation. So categorically the re-starting of the statutory clock can never occur in any circumstances after the debt has become statute barred so a debts new buyer does not gain any new rights or options but only has those the previous or original owner had when it was sold to them. No more no less period!

 

As to debt sales creditors or a debts owner are at liberty to sell a debt at any time at their discretion without recourse or permission / consultation with any debtor. So if this has in fact occurred all that’s required is you be formally advised this has occurred in writing either by the debts seller or the new owner but its usually contained in the first debt collection communication the new owner sends. So its almost certain that any new correspondence is completely legal and that they have the right to pursue the debt which you are just as liable for now as you were when you first took it on statute barred or not and they can do everything to recover it from you save taking court action as long as they do so in a such a way which can not be misconstrued as deliberate harassment.

 

Boo;)

[Ragandboneman]

Brilliant replies - very helpful, thankyou.

 

So does the Statute Barred 'conquer all'?

 

If, in the instance, they can produce the original credit agreement (made 9 years ago at least), proof of letters they've sent to old addresses,

 

Does the Statue Barred Limitation make these 'angles' null and void?

 

Is my basic line of defense - 'too late', and no matter what they produce my position safe?

[lickthewallfatboy]

put simply

 

"yes"

[cerberusalert]

You could wander the streets ringing a bell & shouting at the top of your voice that you owe the debt & they still wouldn't be able to enforce payment.

[Bazooka Boo]

You could wander the streets ringing a bell & shouting at the top of your voice that you owe the debt & they still wouldn't be able to enforce payment.

 

I wondered who that was making all that noise!

[pompeyfaith]

Thanks Guys as i thought.

 

PF

[pt2537]

When you have moved, were you registered on the electrol roll?

 

i have to ask as they can get around limitation if you have purposely gone out of your way to avoid or hide from them

 

So if you were registered on the councils roll, you can simply blow raspberry's at them as it will be stat barred and should they allege you have tried to avoid them then you just say sorry but i was on the electrol roll and its their duty to carry out checks, its not for you to inform your creditors everytime you move

[Ragandboneman]

Well this is certainly positive news, many thanks for everyones input, I am on the electoral roll.

 

If I pursue this course, will I effectively be 'asking for trouble'.

 

I imagine I will receive continual letters, stating what they believe I owe for the rest of my life, worse still, would it affect my credit rating forever - and go down as 'defaulted' - and even worse still, be handed over to a ragtime DCA who'll have bayliffs at my door?

 

I shall try and keep this thread up to date with their responses.

[cerberusalert]

Once you have declared that the debt is SB & you will not be paying it is against OFT guidelines for them to pursue you for payment unless they can prove the debt is not SB.

[pompeyfaith]

Just send them the stat bared letter in post 3.

 

There should be nothing on you credit file as it should come off after 6 yrs you can check this by getting a credit report i think it is £2 via post or you can get a free credit report account for 30 days if you sign up with a card but with this remember to cancel within 30 days as you will be charged.

 

If they pass it onto another DCA just send the letter again in post 3

 

PF

[make them aktiv runners]

Section 32 of the Act:

 

©

the action is for relief from the consequences of a

mistake;

the period of limitation shall not begin to run until the plaintiff has

discovered the fraud, concealment or mistake (as the case may be)

or could with reasonable diligence have discovered it.

References in this subsection to the defendant include references to the defendant’s agent and to any person through whom the defendant claims and his agent

 

The part in bold is the key information. Judges rule on what is reasonable for creditors to do as opposed to what they have actually done.

 

Look at at this way, if you were chasing some-one for payment and they did not reply to say 3 letters in a row what would you do? This is where the creditor does have to show they did check the address out with reliable resources. And more importantly where they failed to check it was their own fault.

 

May be worth having a copy of your credit report to prove the number of chances they had to know where you were, ie not only do council tax update so do other creditors.

[Ragandboneman]

Thanks Makethemaktiv,

 

I'm just about to send the letter, though I have heard, if a Court Action has been started within any period, the Limitation Act is unuseable - and the DCA's are able to continue their collection.

 

Is this correct? If an action had been started and sent to the wrong address, effectively my 'Statute Barred' defense no longer applies?

[babybear39]

Subscribing...

[IdaInFife]

Thanks Makethemaktiv,

 

I'm just about to send the letter, though I have heard, if a Court Action has been started within any period, the Limitation Act is unuseable - and the DCA's are able to continue their collection.

 

Is this correct? If an action had been started and sent to the wrong address, effectively my 'Statute Barred' defense no longer applies?

 

 

if court papers were dilvered to a wrong address and judgement was granted in your absence, you would then apply for it to be set aside as you did not recieve any and this is when the balls rolls again you supply the status barred as defence.

 

Ida x

[Bazooka Boo]

I'm just about to send the letter, though I have heard, if a Court Action has been started within any period, the Limitation Act is unuseable - and the DCA's are able to continue their collection.

 

Not technically correct,

The court action or CCJ must be applied for within the first six years (5 in Scotland) of the debt occurring, the OC or DCA cannot apply or take legal action against you after this time period has elapsed, as the debt is SB.

 

If you want to check if you have a CCJ against you you can look here CCJs, court orders & fines - Search yourself and others - Trust Online

 

Boo;)

[Ragandboneman]

More excellent replies; thank you. I hope this thread becomes useful to others;

I have two further questions relating to the SB Letter.

 

I've heard of people sending a postal order for £1 along with the SB letter; yet I can't figure out what that would be for? Wouldn't a DCA attempt to skew this as acknowledgement and payment?

 

I've also heard of people sending the original creditor the same letter too; is this recommended?

 

The advice so far here didn't mention this; would this be advisable?

[babybear39]

You don't send payment and you don't need to write to the original creditor.

[cerberusalert]

You don't have to send anything with the SB other than your best wishes.

 

No you don't have to notify the OC.

[Bazooka Boo]

I've heard of people sending a postal order for £1 along with the SB letter; yet I can't figure out what that would be for? Wouldn't a DCA attempt to skew this as acknowledgement and payment?

 

Even if the DCA use the £1 toward the debt, if it is SB it wouldn't have any effect on the validity of the debt, once a debt is SB, it remains SB whatever then transpires, and nothing either they or the debtor does can ever change that:D

 

I've also heard of people sending the original creditor the same letter too; is this recommended?

No there is no need. Save the postage;)

[Ragandboneman]

Many thanks for the replies; I have now taken receipt of the DCA's first reply.

Looks like a fairly standard 'You have raised a dispute' & 'We'll contact our client letter'; of course - I'm hoping this is positive; as it would mean they have little reference to the original paperwork; which in any case, even upon production would be SB.

 

I'l keep the thread posted.