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

[The Tech Clerk]

Do you mean 4 years after 6 years SB?

[Spent2much]

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!

Sorry to quote this post , but I am trying to find information on a few debts that are SB for 4 years in June , I am getting threatograms again. I've ignored them , can they take any action after 4 years SB ? thanks .
I quoted this as I was finding it hard to find the right place to ask and my laptop is playing up .

[Joanna Connolly Solicitors]

So is there still a danger of court action after sb ?

There may be a danger of court action after a debt is Statute Barred but there shouldn't be any danger of them winning


Also the FCA Handbook CONC 7.15.7 is clear that if a firm (i.e. debt owner) knows, or ought to know, that a debt is SB then it shouldn't threaten court action and they must not continue to demand payment once the debtor has told them they're not paying because the debt is SB >

https://www.handbook.fca.org.uk/hand...ate=2015-10-26



CONC 7.15.7
01/04/2014

It is misleading for a firm to suggest or state that a customer may be the subject of court action for the sum of the statute barred debt when the firm knows, or reasonably ought to know, that the relevant limitation period has expired.

[Note: paragraph 3.15b of DCG]


CONC 7.15.8
01/04/2014

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.

[Note: paragraph 3.15b of DCG]



Di

[cymruambyth]

So is there still a danger of court action after sb ?

Unfortunately they rely on people’s ignorance. SB is its own defence.

[The Tech Clerk]

SB would be any defence his they tried it!

[Spent2much]

So is there still a danger of court action after sb ?

[DNW]

Glad I spotted this thread as I’d asked a similar question in a different forum area a few days ago and wasn’t sure when I should be checking my credit files.

[cymruambyth]

If you check your credit record it may prompt a flurry of activity from creditors, so if you want to check wait 2 or 3 months after when you are certain that they are all SB.

[Spent2much]

when should we check our credit file after SB ?

[Still Waving]

Some unscrupulous debt purchasers/lenders (no names mentioned) check your CRA file and then deliberately issue a claim at the old address knowing you won’t get it so they can obtain a Default Judgment.

Di

I had this scenario with Shoosmiths writing on behalf of Arrow Global, despite the fact the the NOA from AG was sent to the correct current address. Fortunately the Shoosmiths letter was redirected so I was aware of what they were threatening to do.

[Joanna Connolly Solicitors]

if say threats came two years after moving somewhere else and if I don't get the letters, could CCJs be issued e.g. two or more years after SB without my knowledge? Do they have a way of identifying old old debts and then realise that they aren't worth pursuing to the point of shoving them through the courts?

A debt owner can issue a claim at the “last known address”.

However they are supposed to carry out due diligence to establish if you are living at that address which is usually done by checking your CRA file to see if you’re on the electoral roll or whether there’s a linked address showing for you.

Some unscrupulous debt purchasers/lenders (no names mentioned) check your CRA file and then deliberately issue a claim at the old address knowing you won’t get it so they can obtain a Default Judgment.

Under CPR 13.2 it’s mandatory for the court to set aside the CCJ if you make an Application supported by a Witness Statement evidencing why they should have known you weren’t living there, but it’s stressful and the Judgment Creditor may successfully argue that it was your “last known” address if you didn’t give them a forwarding address.

You may not even know you have the CCJ until you get a bailiffs Warrant in the post having traced your new address. So it’s best to keep Mail redirection in place for as long as possible (Royal Mail extended their service to four years).

Di

[Joanna Connolly Solicitors]

Have a look here FCA CONC 7.15 Statute barred debts

https://www.handbook.fca.org.uk/handbook/CONC/7/15.html

Sadly FCA guidance won’t prevent a debt owner from issuing a claim if they believe the debt is not Statute Barred.

And what about the debt purchasers which aren't authorised and regulated by the FCA . . .

Di

[Roger]

That's a point which interests me too. I moved 6 years ago this month, and have managed to keep mail redirected, and will for another year. All debts should be SB at end July this year. If I don't have any redirected mail after April next year, could I conceiveably fall victim to a default CCJ later?

Have a look here FCA CONC 7.15 Statute barred debts

https://www.handbook.fca.org.uk/handbook/CONC/7/15.html

[Still Waving]

I've been fortunate enough to have been at the same address since the start of my UE journey. But are those who move house at a disadvantage? I have no plans to move (although who knows what's in the landlady's head ...) but if say threats came two years after moving somewhere else and if I don't get the letters, could CCJs be issued e.g. two or more years after SB without my knowledge? Do they have a way of identifying old old debts and then realise that they aren't worth pursuing to the point of shoving them through the courts? Or do you always have to be on your toes/on tenderhooks with this until the end of time? [snowing here right now!]

That's a point which interests me too. I moved 6 years ago this month, and have managed to keep mail redirected, and will for another year. All debts should be SB at end July this year. If I don't have any redirected mail after April next year, could I conceiveably fall victim to a default CCJ later?

[Pip]

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.

Just rekindling this thread more than a year on!
I think all my accounts are statute barred now, but from the advice already given in this whole thread, I realise it's best to just keep quiet about SB until it becomes a certainty and if DCAs/debt owners become threatening.
I've been fortunate enough to have been at the same address since the start of my UE journey. But are those who move house at a disadvantage? I have no plans to move (although who knows what's in the landlady's head ...) but if say threats came two years after moving somewhere else and if I don't get the letters, could CCJs be issued e.g. two or more years after SB without my knowledge? Do they have a way of identifying old old debts and then realise that they aren't worth pursuing to the point of shoving them through the courts? Or do you always have to be on your toes/on tenderhooks with this until the end of time? [snowing here right now!]