Statute Barred - Contact

[indebtnow]

With regards to the notes on Statute Barred debts in this thread: 

where it states:

"If the lender or owner has been in regular contact with the customer during the limitation period, the firm may continue to attempt to recover the debt."

 

am I correct in presuming that the contact has to be "both ways" and not just the lender/owner firing a load of letters that go unanswered?

[BankFodder]

Good question but frankly I don't think there is anything in the wording to say that the contact must have been both ways or even that the contact must have been successful.

I think it simply suggests that the lender or owner can't have neglected the alleged debt for the entire period of six years and then suddenly decide to get going.

[indebtnow]

Many thanks,

 

To add to that though, further down in the notes is:

 

"A firm must not continue to demand payment from a customer after the customer has stated that he will not be paying the debt because it is statute barred."

 

Presumably they can't use the line "If the lender or owner has been in regular contact with the customer during the limitation period, the firm may continue to attempt to recover the debt." to continue to contact/harass the customer once they have been made clear the debt is statute barred?

[AndyOrch]

" am I correct in presuming that the contact has to be "both ways" and not just the lender/owner firing a load of letters that go unanswered? "

 

Correct and not just contact from the debtor...payment or written acknowledgment of the debt from the debtor.

 

Andy

[BankFodder]

What I gather from it is that if there has been no contact during the limitation period, then the creditor should not attempt to begin any kind of enforcement at all. If there has been contact then the creditor can continue to try and recover the debt but if the debt is statute barred and if the debtor has appreciated that fact and has informed the lender that they are now relying on the fact that the limitation period has expired, then the lender is not entitled to take any further action in respect of the alleged.

Quite frankly it's all a bit of a stupid game. It would be far easier simply to say that once the debt is statute barred that it is not recoverable. In fact what it is saying is that if the debtor is unaware of his rights then the creditor can continue exploiting that ignorance.

Anyway, why are you asking these questions,? Do you have a story to tell us?

Just now, Andyorch said:

" am I correct in presuming that the contact has to be "both ways" and not just the lender/owner firing a load of letters that go unanswered? "

 

Correct and not just contact from the debtor...payment or written acknowledgment of the debt from the debtor.

 

Andy

 

Hmmm it seems our advice conflicts.

[indebtnow]

6 minutes ago, BankFodder said:

Quite frankly it's all a bit of a stupid game. It would be far easier simply to say that once the debt is statute barred that it is not recoverable. In fact what it is saying is that if the debtor is unaware of his rights then the creditor can continue exploiting that ignorance.

 

Sadly, as well know, most of the DCA's tactics rely on the debtor not knowing the rules of the law.

Thanks for your help everyone!

[AndyOrch]

Unsecured debts, including most loans, credit cards, catalogues and overdrafts will normally be statute-barred in England and Wales if you can say YES to all the following four points:

1. It has been more than six years since you last made a payment; and
2. the creditor has a cause of action more than six years ago; and 
3. you haven’t acknowledged the debt in writing during this time; and
4. the creditor hasn’t already gone to court for a CCJ.    

They can continue to chase for payment if the debt is statute barred.....but cant legally enforce it or issue court claim or make you make payment.....Scotland is different after 5 years its completely dead and wiped from the face of the earth

 

[indebtnow]

Scotland looks quite attractive now 

 

I can certainly answer yes to all of those. Presumably, firing off a statute barred letter which I am doing today, stops them from keep writing to me and contacting me?

[AndyOrch]

CONC 7.15

 

" A firm must not continue to demand payment from a customer after the customer has stated that he will not be paying the debt because it is statute barred." 

 

How you intepret statute bareed and how a DCA does are worlds apart

but your welcome to try...I personally wouldn't advise sending anything if the debt is statute barred...it simply starts letter tennis and you are opening up a line of communication

[indebtnow]

The 2 debts are statute barred and one of them has sent a letter to my new address and want them to go away, hence why I want to fire off statute barred letters.

 

My fiancee panicked when one of them wrote to me at our new address (which is the scare tactics they rely on)!

[AndyOrch]

So what..... file it away for the future if required....if you are 100% correct the debts are statute barred.Believe me its far easier to file the letter away than get into letter tennis you stating it is they stating its not.........seen it 100s of times and the poster wished they had never sent it...but its your call.

[indebtnow]

Fair enough, you're advice has always been spot on so will hang fire! Many thanks!

[dx100uk]

as long as its not a mortgage shortfall and letters from the original lender....