Statute barred or not?

[Mmmmm11]

Hi
I have debt with Cabot
after sending a data request to the original lender it turns out that although the debt is over 6 years old it is still pending sale.

my concern is that there is a default notices for small sums. Not the entire amount. Does the statute barred cause of action still start from these dates or do they need to send a default notice for the entire amount for the cause of action date to start.

thanks.

[Still Waving]

Hi

More information required. Are you still paying anything/when did you last pay? What correspondence have you been having with Cabot/Original lender? You say it is still pending sale, but it is with Cabot - have Cabot not bought the debt from the original creditor?

[Mmmmm11]

Hi
no contact with either for over 6 years. Apart from the recent Sar request
well over been getting letters off Cabot so I figured that they had bought it.
On one of internal paperwork from Sar it states sale is still pending. There is no notice of assignment in Sar bundle

[Mmmmm11]

Sorry. Will just correct that. Pending sale note was in 2013. But there is nothing relating to passing to any DCA.

There is also no statements at all so not sure how they can show payments. Not sure if they have just passed it all to Cabot and then deleted it all

[Roger]

Well it would help if you could set up a diary entry
Because frankly there are more questions than answers here.
Start a diary:-


Type of account (credit card/loan/overdraft)
Date commenced
Approx balance
Date last paid (approximate date you last made a FULL payment)
Are you on arrangement or not paying
Status (default/in arrears/up-to-date)

[Mmmmm11]

Hmmm. I seem to have confused people so I will try be a bit clearer.

my question is very specific. And it’s in regard to default notices served late and how tat affects the statute barred date

i havent been in touch with either of them or made payments in over 6 years so I know I’m in the statute barred zone but….

after serving a Sar it seems they only served a default notice only for a missed payment and not the whole amount owed.

so my question is this… does it matter that they didn’t serve a default notice for the full amount or is that a default notice is a default regardless of the amount stated on it as any default notice is the ‘ cause of action “ and so the statute barred date starts ticking as soon as one is served

[The Tech Clerk]

)Service of a notice on the debtor or hirer in accordance with section 88 (a “default notice ”) is necessary before the creditor or owner can become entitled, by reason of any breach by the debtor or hirer of a regulated agreement,—

go to that regulation and read through you will get an idea of your question
Default notices - Consumer Credit Act 1974 - Legislation.gov.uk

https://www.legislation.gov.uk › part › VII › crossheading

[Roger]

And there would have to have been a Default Notice before closing the Account and Assignment to Cabot
But also who expressly within the Cabot Group was Assigned the Debt.

Now this is where the SAR comes into the equation does the SAR anywhere show that a Default Notice was raised?

But there was I believe a Case where the Default Notice was issued late BUT the Default Notice Date was deemed the starting Date for the 6 year Statute Bar.

As I hope you can begin to appreciate more information is needed here before really giving suggestions.

Are you confusing a Default Notice which is specific for what is necessary to bring the account in order within a Statuary timescale before the whole outstanding Debt becomes payable.

There is a Notice of Arrears which may be what you are refering to.

[Mmmmm11]

Hi roger
this case is my concern.
I suppose my overarching question is when does the clock start ticking. But a little bit more technical

this case sets that date the clock starts as the cause of action… the cause of action being deemed the date the default notice is sent.

in my case I have two default notices. One for £25 and another £150. Not sure what they relate to. The loan was for 7k.
BUT I DO NOT HAVE A DEFAULT NOTICE FOR FULL AMOUNT WHICH IS WHAT WORRIES ME.

my understanding is, and please correct me if I’m wrong is that any default notice regardless of amount stated on it is a cause of action as it allows creditor to demand full amount. And so since I didn’t respond in 6 years then it’s statute barred.

as for for info. Well the Sar actually revealed very little. Just app form and cca and various debt chase letters

it did not cont any assignments to Cabot nor any statements of accounts

[The Tech Clerk]

await to see what the DSAR shows all the comments here are hearsay i.e. if/buts?

Mean time give the diary some information:-



Type of account (credit card/loan/overdraft)
Date commenced
Approx balance
Date last paid (approximate date you last made a FULL payment)
Are you on arrangement or not paying
Status (default/in arrears/up-to-date)

[Gerry Jemitus]

A default notice would specify that it is a 'default notice under s87(1) of the CCA'. This terminates the agreement, calls in the full balance and starts the statute barred clock. However, you can (and should if you are in arrears) be receiving notices of default sums or six monthly notices of sums in arrears, in which case the agreement is still active, and hence the clock does not start.

As this was a loan, the date of last payment DUE at the loan term end can also be the start of the statute clock, unless the agreement has been terminated early as above. I don't know the details of this particular loan, but, as an example, a 10 year loan, taken out in 2010, would not become statute barred before 2026, unless terminated early by the creditor.

I hope that clarifies the situation a little

[Colin G Quinn]

Hi,

Can you explain what you mean by referring to a default notice having been served late?

There is no requirement for a default notice to be served calling in an entire balance. A default notice is only required for the calling in of arrears.

The cause of action accrues the day after the date specified in a default notice for a consumer to remedy an alleged breach, by paying the arrears called in by the notice, and in the absence of any payment of the said arrears. It is not the date a default notice is sent.

However, that would only apply if the notice itself was compliant and correct.

If you want to email me the default notices you have I'd be happy to take a look and get back to you. My email address is in the legal disclaimer below.

[The Tech Clerk]

Hi roger
this case is my concern.
I suppose my overarching question is when does the clock start ticking. But a little bit more technical

this case sets that date the clock starts as the cause of action… the cause of action being deemed the date the default notice is sent.

in my case I have two default notices. One for £25 and another £150. Not sure what they relate to. The loan was for 7k.
BUT I DO NOT HAVE A DEFAULT NOTICE FOR FULL AMOUNT WHICH IS WHAT WORRIES ME.

my understanding is, and please correct me if I’m wrong is that any default notice regardless of amount stated on it is a cause of action as it allows creditor to demand full amount. And so since I didn’t respond in 6 years then it’s statute barred.

as for for info. Well the Sar actually revealed very little. Just app form and cca and various debt chase letters

it did not cont any assignments to Cabot nor any statements of accounts

Notice of defaults you got?????

[Mmmmm11]

Hi the tech clerk.
yes I have the dsar already and default notice s received in 2014 with no further contact with anyone.

thanks to the two kind people from Joanna Connolly solicitors. I sort of figured it would need someone legally trained for answer.

and from what you have stated then it is the case that I have received a default notice for arrears. All that remains is to see if it’s valid so I will take up your offer and send you a copy.

what I meant by a late default notice was that I assumed they needed to send a default notice for the full amount for the clock to start. And I had read that creditors can delay the statute barred clock by delaying sending a default notice. I was worried this might be the case with me. But I do have default notice for arrears from over six years ago with no further contact

the only other issue would be that there is no assignment to Cabot in the dsar.

thankypu for kind time.

[The Tech Clerk]

A default notice is normally sent when you've missed or paid less than the full amount for three to six months. Default notices only apply to debts regulated by the Consumer Credit Act.