Advice please on Statute Barred and CCJ possibilities

[Moving_on]

Hello all and thank you for taking the time to read my post.

 

I was a university student from 2005-2009. I had a student account, with £1400 overdraft, with Natwest from 2005 until September 2008 (When a notice was issued under section 76(1) and 96(1) of the CCA 1974.

 

I saw foolish enough to apply for a £5000 loan in October 2007 from Natwest, which I was approved for, despite being unemployed. I could not afford to pay this loan and a default notice was issued in October 2008 under section 87(1) of the CCA 1974.

 

The last payment I made to either of these accounts was 25th July 2008.

 

Other pertinent information:

 

• Default date for loan on Credit Expert says 12/2008 despite Default Notice saying 10/2008.
  
• Default date for overdraft on Credit Expert says 12/2008 despite Overdraft Notice saying 09/2008.
  
• Both accounts not updated on Credit Expert since 08/2010.
  

 

 

My Questions:

 

1. Should the overdraft receive a default notice like the loan?
   
2. As I have not acknowledged either account since 07/2008, will they become Statute Barred in 9 months?
   
3. Will Natwest wait until the last minute and then file for a CCJ?
   
4. How common is it for them to not update an account for over 3 years?
   

 

 

 

Thank you for reading. I hope somebody can help.

[sequenci]

1. Yes, once the bank decides to actually call the overdraft. They can, in essence, do this whenever they wish

2. They will become statute barred 6 years after the point where they could first bring action against you for the money, for loans this is typically a few months after the payments stop, for overdrafts this will be 6 years after they decide to call in the overdraft - whenever that may have been.

3. I cannot answer this, I've no idea what their policies and processes are - in effect it's up to them

4. Quite common.

 

Best wishes,

 

Seq.

[Moving_on]

Thank you sequenci for your reply.

 

I would just like to fire a couple more questions back at you. I am still not in a position to pay, but am just curious as to whether I should expect a CCJ within the next year.

 

1. For the 6 year time period to begin on loans becoming statute barred, you said it was a few months after the payments stop. Is this as soon as they issue a default notice or is there a different event which prompts the start of the 6 years?
   
2. How common is it for them to start chasing the debt again after many years of not doing so?
   

 

 

The reason I ask Question 1 above is that I have read that the time period begins from the last time the debt was acknowledged or a payment was made. Is this information wrong?

[sequenci]

1. One the default has expired they could sue you, so the cause of action would start once that has happened. Some contracts might state that they have to serve a termination notice first. This would be when they can first sue. That's when the 6 years would start for either.

 

2. It's reasonably common.

[Moving_on]

That's great information. Thanks for your time.

[JGJ]

Moving_on

 

Yes you are correct, clock starts from last payment made or the last time you acknowledged the debt.

 

"EXEMPLO DUCEMUS"

[sequenci]

No worries. One other thing that's useful to know is that when you raise a limitations argument the onus is placed on the creditor to prove that the debt ISN'T statute barred. The ball is firmly in their court

[sequenci]

Moving_on

 

Yes you are correct, clock starts from last payment made or the last time you acknowledged the debt.

 

"EXEMPLO DUCEMUS"

 

That's true - but only once the original cause of action has commenced.