Statute Barred -- is there a section that goes into detail about this?

[Pip]

Hello all,

It's still a little bit of time until any of mine are Statute Barred but it's a lot nearer than when I started! In fact, I've just looked and it's just over a year until all of mine are SB!

I've been looking around the site but I haven't found anywhere that describes what Statute Barred exactly means and what the practicalities are, e.g. do you still have to keep writing to any creditors who come on a fishing expedition, or could something like a CCJ happen if you let your guard down and ignore letters etc.?

There may well be such a section on here but I can't find it. I'd like to clue myself up on the topic a little bit ahead of time ..!

Many thanks for any pointers,
Pip

[Pixie]

Re: Statute Barred -- is there a section that goes into detail about this?

Hi Pip

SB is generally 6 years (5 years in Scotland) from the last cause of action on the debt. This is usually the date of the first missed payment but there was a case earlier this year where the judge agreed with the creditor's assertion that it was 6 years from the date of the default notice. Therefore, to be certain a debt is SB, count the time from whichever is the latest date.

Creditors often ramp up their efforts in the last year or so before SB even if they've been quiet for two or three years prior to that. Just let us know if you get any letters. It is possible to get a CCJ just before SB but the creditor would have to explain why they'd left it so late if they knew your address etc.

After a debt is SB the creditor can still chase you for the debt, except in Scotland where the debt is extinguished, but they cannot take you to court. If the creditor sends fishing letters you can safely ignore them.

Good luck, getting to SB is a good feeling!

[BuzzyBee]

Re: Statute Barred -- is there a section that goes into detail about this?

The Limitation Act 1980 refers to six years from the cause of action (excludes mortgage shortfalls and secured loans), but gives no indication as to what the cause of action may be. Missing a payment could be considered a cause of action, hence the idea that the clock starts to run from when you first miss a payment, however, there have been times where the courts haven't agreed with this. For example, it has been argued that, since the Consumer Credit Act requires a default notice to be issued before the creditor can terminate the agreement, the cause of action would only start after a DN has been issued and the period to remedy the breach expired. It is often at the discretion of the court to establish when the cause of action occurred.

It's a good idea to allow some extra time to be on the safe side, and this means not rushing to tell the creditor that the debt is statute barred, in case they try a last ditch attempt at getting a claim in to stop the clock. It's a common myth that a claim cannot be issued for a SBd debt, this isn't true, SBd is a procedural defence, a claim can still be issued and should be defended in the usual way. SBd is an absolute defence, provided you've got your dates right. Many people forget having made token payments after defaulting and some creditors, notably Lowell, have been known to make up random phantom payments.

If a claim is issued and not acknowledged or defended, the creditor can request a default judgment in the usual way, this is an administrative procedure where the court does not look at the merits of the case. If that happens, you would have to apply to have the CCJ set aside. It's wise to keep an eye on the post and make sure it's not going to an old address even if your debts are SBd for that reason.

It's a good idea to string your creditors along (without acknowledging the debt!) for a while, before dropping the bombshell that the debt is SB. For example, Cabot bought my Egg card in January this year and my statements show last payment made Dec 2009. Rather than rushing to tell them it's SBd, I sent a CCA request which took them till April to respond to, then they sent just some database entries with my personal details but not a single term, arguing it was an internet application, but it was from 2002. As they didn't chase me, I didn't reply saying there were missing terms or anything. They unleashed Fidelite who have only threatened home visits and no legal action, so they've been duly ignored. In fact, they left a card saying they'd paid me a visit, shame I was away for a while. As it's now coming up to seven years since last payment, if and when they write again, I'll finally give them the news that it's SBd, the argument should be much more watertight now than it was back in January.

[BuzzyBee]

Re: Statute Barred -- is there a section that goes into detail about this?

Creditors often ramp up their efforts in the last year or so before SB even if they've been quiet for two or three years prior to that. Just let us know if you get any letters. It is possible to get a CCJ just before SB but the creditor would have to explain why they'd left it so late if they knew your address etc.

The creditor does not have to explain why it left it so late, you must be referring to enforcing CCJs when no attempt was made to enforce during the first six years. A creditor can issue a claim at any time, before or after the debt is SBd. If the debt is not yet SBd, you'd need an alternative defence, arguing that they shouldn't have left it so let isn't a defence. If you have told the creditor that the debt is SB and they still issue a claim, it could be seen as an abuse of process and definitely against FCA principles. If the claim is issued before the debt is SBd, they don't have to explain why they didn't issue earlier.

[Pip]

Re: Statute Barred -- is there a section that goes into detail about this?

Food for thought. Thanks to you both!
I'll probably give it say six years and six months since my final payment(s) before considering them SB. There's a while yet though, as I say.

[MrsD]

Re: Statute Barred -- is there a section that goes into detail about this?

good plan Pip,

[helmsman]

Re: Statute Barred -- is there a section that goes into detail about this?

The Limitation Act 1980 refers to six years from the cause of action (excludes mortgage shortfalls and secured loans), but gives no indication as to what the cause of action may be. Missing a payment could be considered a cause of action, hence the idea that the clock starts to run from when you first miss a payment, however, there have been times where the courts haven't agreed with this. For example, it has been argued that, since the Consumer Credit Act requires a default notice to be issued before the creditor can terminate the agreement, the cause of action would only start after a DN has been issued and the period to remedy the breach expired. It is often at the discretion of the court to establish when the cause of action occurred.

It's a good idea to allow some extra time to be on the safe side, and this means not rushing to tell the creditor that the debt is statute barred, in case they try a last ditch attempt at getting a claim in to stop the clock. It's a common myth that a claim cannot be issued for a SBd debt, this isn't true, SBd is a procedural defence, a claim can still be issued and should be defended in the usual way. SBd is an absolute defence, provided you've got your dates right. Many people forget having made token payments after defaulting and some creditors, notably Lowell, have been known to make up random phantom payments.

If a claim is issued and not acknowledged or defended, the creditor can request a default judgment in the usual way, this is an administrative procedure where the court does not look at the merits of the case. If that happens, you would have to apply to have the CCJ set aside. It's wise to keep an eye on the post and make sure it's not going to an old address even if your debts are SBd for that reason.

It's a good idea to string your creditors along (without acknowledging the debt!) for a while, before dropping the bombshell that the debt is SB. For example, Cabot bought my Egg card in January this year and my statements show last payment made Dec 2009. Rather than rushing to tell them it's SBd, I sent a CCA request which took them till April to respond to, then they sent just some database entries with my personal details but not a single term, arguing it was an internet application, but it was from 2002. As they didn't chase me, I didn't reply saying there were missing terms or anything. They unleashed Fidelite who have only threatened home visits and no legal action, so they've been duly ignored. In fact, they left a card saying they'd paid me a visit, shame I was away for a while. As it's now coming up to seven years since last payment, if and when they write again, I'll finally give them the news that it's SBd, the argument should be much more watertight now than it was back in January.

Hi,
Have been reading a lot about COA, would a
DCA chasing before a default is issued be a COA?.
Helmsman.

[Pixie]

Re: Statute Barred -- is there a section that goes into detail about this?

Hi,
Have been reading a lot about COA, would a
DCA chasing before a default is issued be a COA?.
Helmsman.

Not in my opinion Helmsman though I'm sure I'll be told if I've got it wrong

For a DCA to chase you would already have missed payments so that would be the COA. There was just the one case where the judge decided that the DN was the COA and, as far as I'm aware, that is being challenged.

[nightwatch]

Re: Statute Barred -- is there a section that goes into detail about this?

one DCA asked me for payment I sent a SWID, they very kindly wrote back apologising for their letter, saying that on looking at their file they noticed it was SB, would be closing the account and not bothering me again. this account was defaulted in 2002 but I had made payments till 2011.
I did not write to correct them

[alfie]

Re: Statute Barred -- is there a section that goes into detail about this?

one DCA asked me for payment I sent a SWID, they very kindly wrote back apologising for their letter, saying that on looking at their file they noticed it was SB, would be closing the account and not bothering me again.

what does SWID mean. thanks.

[The Tech Clerk]

Re: Statute Barred -- is there a section that goes into detail about this?

what does SWID mean. thanks.

Sold Whilst In Dispute

[lookingforward]

Re: Statute Barred -- is there a section that goes into detail about this?

one DCA asked me for payment I sent a SWID, they very kindly wrote back apologising for their letter, saying that on looking at their file they noticed it was SB, would be closing the account and not bothering me again. this account was defaulted in 2002 but I had made payments till 2011.
I did not write to correct them

Nice one :-0

[lookingforward]

Re: Statute Barred -- is there a section that goes into detail about this?

I've just from robway regarding an old Cahoot account that states:-

We have prev tried to contact you but have not heard from you. We want to find the right solution to help you clear the debt but if you don’t contact we cant set up a payment plan for you.
Typically when a customer doesn’t contact we may consider the following options:-
Send an agent to home,
Refer to clients solicitors and ask them to issue a CCJ claim,
Tell the CRA’s (if it is less then 6 yrs since the default date),
Try to contact by phone.

These are last options and before we do take legal action or send a field agent to your home we will tell you what we intend to do. We would prefer to find the right solution so please get in touch by the 28.1.17.

Now this was defaulted back in 2005 however I then made payments via a DMP until my last payment in April 2010 so nearly 7 years now and no further DN has been rec'd.

Should I just ignore or write and tell them it's SB as I don't want the hassle of replying to any possible CCJ paperwork

[Spent2much]

Re: Statute Barred -- is there a section that goes into detail about this?

I think some of my creditors issues default notices a few years back i would need to check my credit file to find out because i can't find any of the default letters - before i joined her i was lazy and didn't file anything .

I won't check my credit file yet as don't want to wake up the creditors .

[Pixie]

Re: Statute Barred -- is there a section that goes into detail about this?

I've just from robway regarding an old Cahoot account that states:-

We have prev tried to contact you but have not heard from you. We want to find the right solution to help you clear the debt but if you don’t contact we cant set up a payment plan for you.
Typically when a customer doesn’t contact we may consider the following options:-
Send an agent to home,
Refer to clients solicitors and ask them to issue a CCJ claim,
Tell the CRA’s (if it is less then 6 yrs since the default date),
Try to contact by phone.

These are last options and before we do take legal action or send a field agent to your home we will tell you what we intend to do. We would prefer to find the right solution so please get in touch by the 28.1.17.

Now this was defaulted back in 2005 however I then made payments via a DMP until my last payment in April 2010 so nearly 7 years now and no further DN has been rec'd.

Should I just ignore or write and tell them it's SB as I don't want the hassle of replying to any possible CCJ paperwork

Its up to you but I would wait and see what they send next. If they decide to refer to a solicitor then you could send the SB letter which you can access by clicking on the "Templates" box at the top of the page. However they may just threaten to send someone to visit you, though it's unlikely that anyone would actually turn up on your doorstep.