Statute barred debt ?

[bsj]

I am a little confused about a debt with HFC it was for goods purchased at PC world.

 

It has passed the 6 year rule,but is it classed as H.P,if so what the is the limitation period.

 

I have been told by a friend it's a Hire purchase in this case it would be 12 years.

 

Is my friend correct.

[maroondevo52]

Hi,

 

Your friend is wrong, the time limit is usually six years for creditors to take legal action to claim money owed on unsecured debts such as, credit cards, personal loans, hire purchase agreements. While, as a general rule, there is a twelve year time limit on action to recover money owed on debts secured on land, such as mortgages or secured loans.

[Hardupnotfedup]

It is 6 years since you made a payment or acknowledged the debt, it is statued barred, 5 years in Scotland.

Mortgage debts are 12 years.I believe

Edited August 15, 2010 by Hardupnotfedup
spelling

[bsj]

Thank you both,i can put my friend right.

 

I did feel this info that was repeated to me was incorrect.

[Financial Claims Advice]

Hi there,

 

Unless HFC can prove that they have contacted you within the time limitation they cannot enforce. If however they can prove conversations or letters sent within the time frame then unfortunately they will be able to continue. It does not automatically become statute barred once the debt has passed 6 years only if no contact has been made to remedy the situation. Hope this helps you

[dx100uk]

a telephone conv does not count, only payment by you or a letter specifically stating you acknowledge the debt and signed by you can reset it.

 

dx

[sillygirl1]

The 6 year rule is when the last TRANSACTION on the account happens, NOT when a letter is sent by the original creditor or a DCA chasing the debt.

 

If it was just a letter being sent being able to reset the clock the alleged debt would NEVER expire.

[bsj]

The 6 year rule is when the last TRANSACTION on the account happens, NOT when a letter is sent by the original creditor or a DCA chasing the debt.

 

If it was just a letter being sent being able to reset the clock the alleged debt would NEVER expire.

 

Am i correct that it's 30 days after the last payment on the account that the countdown begins?

 

No wonder people get confused with when the SB starts with posters like financial adviser offering the above advice,we would all be forever in the debt of the banks and DCA's........I only take the advice of long time posters and the site team,you can't be to careful.

[postggj]

You are correct

 

the six year rule starts from the cause of action

 

that being the the last time you missed a contractual payment

[bsj]

Thanks postggj