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  • #1

    Statute barred?

    Am I right in thinking an account becomes statute barred 6 years since the last payment was made on the account? If so, there are two accounts I have not paid since December 2008 and February 2009 and will therefore become statute barred in December 2014 and February 2015 yes?

    The account not paid since February 2009 I get a statement for but I have not been chased for the outstanding debt for 2-3 years now. The other debt I get regular calls from AIC/Allied a DCA for the outstanding debt and was recently offered a settlement figure of 60% less than the outstanding amount. My current plan is to sit it out, i.e. not do anything, not reply to letters/offers, continue ignoring telephone calls etc. is this a wise move? In the last 4-5 years very little has been done to recover the debts. However, what's the chances of the creditors 'turning up the heat' in the time left before they become statute barred? What could they do in the next 12-18 months to recover their money?

    Thanks
    Tags: 2015, account, accounts, act, action, breached, calls, capital, con, consumer, consumer credit act, cra, credit, creditors, date, dca, debt, debts, default, defaulted, letters, money, offers, paid, pay, payments, rac, scotland, statute, statute barred, telephone
  • #2
    Re: Statute barred?

    Hi Lloydjones,
    The Statute Barred date is, technically in most cases 6 years from "accrual of cause of action" which translated means when the agreement is breached by non payment. So if you had been making regular contractual payments without default, it would start from the day after your first missed payment.
    If, however the account has already been defaulted/terminated and you make a payment (or unequivocally acknowledge the debt in writing) then it would start the day after that. There are other scenarios but that covers the main ones

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    • #3
      Re: Statute barred?

      Am I right in thinking that after the statute barred means that after this date I am no longer legally obliged to pay the outstanding debt? What happens on my credit report as the default date is after my last payment? How does this appear on my report?

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      • #4
        Re: Statute barred?

        The default date for your credit file is different to the default under the Consumer Credit Act. It has to be placed in a timely manner (usually no more than 6 months after default). It will then drop off your credit file 6 years down the line. (5 in Scotland). The Statute Barred date is usually earlier than this as it reflects the point of default not the date it was registered on your credit file.

        After that date, the debt is not extinguished but they can no longer enforce it through the courts. They can initially ask you to pay but once you inform them that it's Statute Barred they should leave you alone and not harrass you.

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        • #5
          Re: Statute barred?

          Thanks for the reply. When does my statute barred debt disappear off my credit report? Is this 6 years since the default date?

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          • #6
            Re: Statute barred?

            Yep six years from when the default is registered on the CRA file...although it can take a couple of weeks or so longer allowing for when the file is updated

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