Large debt help required, over 6 years old

[wasp23]

Please can you advise of the following.

 

In 2003 I got into a quite alot of unsecured debt, I had county court judgments raised that year, I have ignored all the letters for the last 7 years i they were sent to my parents address.

 

The issue is this for the last 3 months the letters have ceased to arrive at my parents address.

 

I never acknowleged the debts or replied to any letters I have seen on this forum that after 6 years the debt gets barred (or something).

 

I was wondering if this is what's happened to me (or if it applies to me) that's why the letters have stopped.

 

Many thanks for any advise in advance.

[homespun]

hi.

they cant touch you as long as you have had no contct.

 

its an agncy trying it on,hopeing you will poop yourself into giving them some money.

 

over 6 years old,statute barred.

 

see enclosed letter.

 

Your Name:

Your Address:

Date

To:

WITHOUT PREJUDICE

Dear Sir/Madam

Account No:

You have contacted me/us regarding the account with the above reference number, which you claim is owed by myself/ourselves.

I/we would point out that under the Limitation Act 1980 Section 5 "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".

I/we would also point out that the OFT say under their Debt Collection Guidance on statute barred debt that "it is unfair to pursue the debt if the debtor has heard nothing from the creditor during the relevant limitation period".

The last correspondence/payment/acknowledgement or payment of this debt was made over six years ago and no further acknowledgement or payment has been made since that time. Unless you can provide evidence of payment or written contact from me/us in the relevant period under Section 5 of the Limitation Act, I/we suggest that you are no longer able to take any court action against me/us to recover the alleged amount claimed.

The OFT Debt Collection Guidance states further that "continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statue barred could amount to harassment contrary to section 40 (1) of the Administration of Justice Act 1970".

I/we await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.

I/we look forward to your reply.

Yours faithfully

[havinastella]

If there are CCJ's against you, it's a different matter.

 

The company chasing the CCJ's have been trying to contant you, but you have ignored them

 

They 'could' ask a court to enforce the CCJ's, if they have a good enough reason.

 

Jogs

[wasp23]

actually thinking back i think they threatend county court judgments but never actually issued one (does this make a difference)

[maroondevo52]

Hi,

 

It changes the statute barred status, as a CCJ can never be SB. However, if they tried to enforce the CCJ now they would have to give a reasonable/rational explanation to the court as to why they had not tried to before now.

 

You can search to see if you have any CCJ's..................

 

CCJs, court orders & fines - Search yourself and others - Trust Online

 

Regards.

 

Scott.

[homespun]

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Diamonds are forever, but debts can become unenforceable

 

29/02/2008

Everyone knows: when someone borrows money, they have a responsibility to make sure it is repaid. But not everyone knows that the creditor shares that responsibility.

 

The Limitation Act 1980 states that most debts can become ‘statute barred’ after 6 years (12 years for mortgages and secured loans). This means they become unenforceable – you still owe the money, but the creditor can no longer take action to recover it.

 

This can only happen if:

 

• the creditor hasn’t contacted you (at your last known address) or taken action (e.g. court action) in that time
  and
  
• you haven’t made payments or acknowledged the debt in that time.
  

The Debt Collection guidance from the Office of Fair Trading (OFT) states that it is unfair for creditors to tell you the debt is still legally recoverable if it isn’t – or to push for payment if you’ve already disputed the debt and cited the Limitation Act. If a creditor does either of these, you should complain to the local Trading Standards Department or to the OFT.

 

However, please note that the Limitation Act 1980 contains various exceptions and a great deal of complicated legal terminology. If you think it might apply to one of your debts, it’s essential you seek advice from a debt specialist, so you can be sure you’re saying the right things and staying within the law.

 

6 years for most debts

Most debts can be declared statute barred if they’re left ‘untouched’ for 6 years. You may be surprised to hear that this includes Community Charge or Council Tax debts.

 

An example:

Imagine you took out a personal loan 10 years ago, but stopped making repayments after 3 years. Since then, you’ve not contacted them and they’ve not contacted you, even though you’ve not moved house. Then, yesterday, a letter arrived on your doormat requesting payment.

 

Since they’ve left it for 7 years, the debt is probably unenforceable – but you can’t simply ignore it. It’s up to you to seek debt advice and dispute the debt on the grounds that the Limitation Act 1980 means you no longer owe the money.

 

Note that the 6-year period can ‘reset’. In this example, if you’d contacted your creditor in 2006 and admitted the debt, the Limitation Act 1980 would not apply until 2012.

 

Exceptions to the rule

If a creditor has been granted a County Court Judgment (CCJ), the debt will still be enforceable, with the court’s permission, even if it’s more than 6 years old. But if the creditor got the CCJ after the debt itself had become statute barred, you can ask the court to set it aside.

 

The Department of Work & Pensions (DWP) has just 6 years to recover benefit overpayments and social fund loans through the court. But they don’t have to go to court to deduct money from benefit payments they make to you, so they can do this even if the debt is over 6 years old.

 

Student Loans are an unusual case, as they changed in September 1998. Any Student Loan taken out before this date was a consumer credit agreement, which means the Limitation Act 1980 applies. But any Student Loan taken since then is an ‘income contingent’ loan – so repayments can be deducted from your wages without any court involvement, regardless of how old the debt is.

 

Income Tax and VAT (Value Added Tax) debts never become unenforceable, however old they are.

 

A real-life mortgage story

Mortgages and secured loans cannot become statute barred until 12 years have passed – but this can happen, as illustrated by the following real-life story.

 

A Stockport man hadn’t paid anything to his mortgage since 1993 and was later declared bankrupt. His bank had not taken any action since 1992, and in March 2007 a judge accepted that his mortgage was ‘extinguished’.

 

The Limitation Act 1980 meant that the bank’s right to enforce the mortgage was ‘barred’. The bank had allowed more than 12 years to pass without taking legal action, so the property became legally his.

[loobyloo85]

Yes, its usually when you dont hear from them, and vice versa that the debt becomes statute barred after 6 years, so it may be worth writing to them offering a token payment

[socktug]

Yes, its usually when you dont hear from them, and vice versa that the debt becomes statute barred after 6 years, so it may be worth writing to them offering a token payment

 

Surely they wouldn't want to offer a token payment as this acknowledges the debt and restarts the SB clock?

 

As long as there are no CCJ's of course..