do statute barred debts ever come off credit files

[tastyjane]

Re: do statute barred debts ever come off credit files

Thank you so much, as I say I was pretty sure I knew that but when someone who claims to be an expert says things (I am pretty sure she works for the CAB) it put the poor girl in a spin. I will PM her again and reassure her.

Jane x

[Riz]

Re: do statute barred debts ever come off credit files

Yes, they are talking complete bollux.

Section 29(5) of the Limitations Act 1980 clearly states that it is only the debtor making an acknowlement or payment that stops or restarts the 6 years from running.

The act does not allow any action of the creditor to prevent the time from running. They can write and phone every day if they so please, but it won't prevent the debt becoming statute barred.

Furthermore, section 30 of the act specifies that even when acknowledgement is made by the debtor under s29, it is only acknowledgement in writing and signed by the debtor that counts.

A phone call cannot possibly count.

[Deepie]

Re: do statute barred debts ever come off credit files

Hmm wonder if someone can answer this one too, I am a member of a parenting forum and a mum on there asked about SB debt. I of course pm'd her and pointed her in this direction but on the open thread someone who works in debt counciling just stated that if a dca can prove they have written to your last known address in the last 6 years, or infact phoned your last known number the debt will never become SB . I am 99% sure this is bollocks but thought I would check with the experts before I wade in

The lady asking the original question has £8k of debt that becomes SB in jan 2014 but is considering becoming bankrupt because she is worried about it!

Jane x

What is statute barred debt?

Statute barred debt is debt which in certain circumstances becomes unenforceable in court. The piece of legislation which sets out these circumstances is the Limitations Act 1980. So when a creditor comes chasing you for an old debt you can use the following information to access whether or not your debt is time barred.
How long can a creditor chase a debt?


This is dependent on the type of debt you have. The most common form of debt which people ask about in our forum is unsecured debts eg credit cards, personal loans, store cards, catalogues, bank loans, finance company loans etc. The Limitations Act 1980 states that when the following conditions are met then the debt cannot be pursue through the courts. The conditions are:-

• That the creditor has not taken court action against you, eg CCJ, AND
• You have not made any payments on the debt over the last 6 years,5 in Scotland AND
• During the years, you haven't written to the creditor acknowledging that owe them money.

[tastyjane]

Re: do statute barred debts ever come off credit files

Hmm wonder if someone can answer this one too, I am a member of a parenting forum and a mum on there asked about SB debt. I of course pm'd her and pointed her in this direction but on the open thread someone who works in debt counciling just stated that if a dca can prove they have written to your last known address in the last 6 years, or infact phoned your last known number the debt will never become SB . I am 99% sure this is bollocks but thought I would check with the experts before I wade in

The lady asking the original question has £8k of debt that becomes SB in jan 2014 but is considering becoming bankrupt because she is worried about it!

Jane x

[Fortman]

Re: do statute barred debts ever come off credit files

Let sleeping dogs lie!

[Spent2much]

Re: do statute barred debts ever come off credit files

It may not happen anyway.

I don't know whether you read about it, but last week I went into Metro Bank to apply for one of their incredibly poor basic accounts, just so I could build up a history with them, and would you believe they gave me a full current account!

That must mean that the last three years are clear, at least. They should be, but you never know what debt collectors have been doing behind your back. I shan't know for sure until I order credit reports early next year. I can't do it before then, because there is still a dirty great Sharklays waiting in the water to destroy everything I've worked for, and it must not be disturbed.

SH

great news that , yes best to leave things alone for now

[ScabHunter]

Re: do statute barred debts ever come off credit files

thank you, it's a long way away yet so i won't worry about it yet

It may not happen anyway.

I don't know whether you read about it, but last week I went into Metro Bank to apply for one of their incredibly poor basic accounts, just so I could build up a history with them, and would you believe they gave me a full current account!

That must mean that the last three years are clear, at least. They should be, but you never know what debt collectors have been doing behind your back. I shan't know for sure until I order credit reports early next year. I can't do it before then, because there is still a dirty great Sharklays waiting in the water to destroy everything I've worked for, and it must not be disturbed.

SH

[Spent2much]

Re: do statute barred debts ever come off credit files

It just shouldn't happen, S2m. There can only be one default per account, but of course that is the law and the law is not always followed. There is nothing you can do in that case except fight to get the unlawful default markers removed.

SH

thank you, it's a long way away yet so i won't worry about it yet

[ScabHunter]

Re: do statute barred debts ever come off credit files

so what about the dca who say they will keep updating the cra and send more than one default do these keep on for another six years each time a dca update ?

It just shouldn't happen, S2m. There can only be one default per account, but of course that is the law and the law is not always followed. There is nothing you can do in that case except fight to get the unlawful default markers removed.

SH

[Spent2much]

Re: do statute barred debts ever come off credit files

If the account has been record as a default on your credit report, then everything about it comes off 6 years after the default date. The amounts, total credit available/oustanding.... everything. A prospective lender searching your report should not see any evidence the debt existed.

so what about the dca who say they will keep updating the cra and send more than one default do these keep on for another six years each time a dca update ?

[Spent2much]

Re: do statute barred debts ever come off credit files

good news then i will look at the credit files in the last year see when the defaults went on , hopefully by then we will be up to date with our mortgage and have a good track record of paying n time so maybe we will be able to get another mortgage afterall .

[tastyjane]

Re: do statute barred debts ever come off credit files

Yeh, that's what I had hoped , plan on track then to be debt free in 18 months

Jane x

[SA Gold]

Re: do statute barred debts ever come off credit files

Can I ask a quick question, I understand your defaults drop off after 6 years but does the amount of debt stay there so effecting lending ratios?

Jane x

hiya,
Everything for that particular lender drops off after six years - good and bad!

[Riz]

Re: do statute barred debts ever come off credit files

Can I ask a quick question, I understand your defaults drop off after 6 years but does the amount of debt stay there so effecting lending ratios?

Jane x

If the account has been record as a default on your credit report, then everything about it comes off 6 years after the default date. The amounts, total credit available/oustanding.... everything. A prospective lender searching your report should not see any evidence the debt existed.

[tastyjane]

Re: do statute barred debts ever come off credit files

Can I ask a quick question, I understand your defaults drop off after 6 years but does the amount of debt stay there so effecting lending ratios?

Jane x