When does an o/d account become SB?

[Loopyloo]

When does the SB clock start ticking with an overdraft? Is it from when the last credit that was paid into the account or from when the bank start demanding payment? I presumed it would have been from when the last credit was paid in, but now think it might be the latter which could add several months to the clock and no real way of roughly knowing when it would be barred as I don't have all the paperwork. Although I have requested a SAR from the bank so that would give me some insight as to when they started chasing me for it I guess.

Thanks

[Deepie]

Re: When does an o/d account become SB?

from when the last credit that was paid into the account ..........


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 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.

[Loopyloo]

Re: When does an o/d account become SB?

Thanks Deepie, that clears it up. Just had a niggling doubt that o/d might be different somehow.

Cheers

[Undercover Elsa]

Re: When does an o/d account become SB?

I may be wrong but I understood it was from accrual of cause of action, (the point where they are entitled to demand full repayment) which in the case of an overdraft is rather muddy as usually there's no set repayment plan. It may be safest to assume that the clock starts ticking the day after you fail to pay the amount demanded in the default notice by the due date. The T&C's may also be taken into consideration if they specifically state at what point they will take action for non payment.

[Loopyloo]

Re: When does an o/d account become SB?

Well I think to be on safe side I will need to account for that just incase My last credit into the account was roughly April 2009 but account was not defaulted until Feb 2010.

[helmsman]

Re: When does an o/d account become SB?

Well I think to be on safe side I will need to account for that just incase My last credit into the account was roughly April 2009 but account was not defaulted until Feb 2010.

Hi,
I also have an O/D not paid or acknowledged since 2009 in my case I have not been defaulted either, I was waiting for the 6 year limit to come around, as an O/D is repaid on demand I hope the 6 year SB will be OK. ps have had no letter from the bank or statement showing this O/D but did show up on SAR.

[Undercover Elsa]

Re: When does an o/d account become SB?

Have they written and demanded full payment Helmsman? (Even without a DN?)

[helmsman]

Re: When does an o/d account become SB?

Have they written and demanded full payment Helmsman? (Even without a DN?)

Hi,
No contact whatsoever showed on SAR which was for something else I was checking on.

[Never-In-Doubt]

Re: When does an o/d account become SB?

It'll still be 6 years from the date you last acknowledged and/or paid into it. Yea the bank may demand full repayment, and then again they may not.

You ought to go by the date YOU last used/credited the account. Argue it after but usually you'd plan it like that.

[Never-In-Doubt]

Re: When does an o/d account become SB?

I may be wrong but I understood it was from accrual of cause of action, (the point where they are entitled to demand full repayment) which in the case of an overdraft is rather muddy as usually there's no set repayment plan. It may be safest to assume that the clock starts ticking the day after you fail to pay the amount demanded in the default notice by the due date. The T&C's may also be taken into consideration if they specifically state at what point they will take action for non payment.

you're quite right it is from the cause of action but as an OD is repayable on demand technically you class it as the date you last credited/used the account as the actual cause of action date could be a year or so later.

As i say it's easier to plan it as 6 years from last payment but argue the cause of action later if they deny / refuse your claim of SB.

[helmsman]

Re: When does an o/d account become SB?

It'll still be 6 years from the date you last acknowledged and/or paid into it. Yea the bank may demand full repayment, and then again they may not.

You ought to go by the date YOU last used/credited the account. Argue it after but usually you'd plan it like that.

HI Niddy,
I noticed this O/D showing on the Sar they are adding % each month so it is continually rising but have not contacted me or sent any statement so hope that will go against them if they try to recoup hopefully in 2016.

[Never-In-Doubt]

Re: When does an o/d account become SB?

They can and will charge mate but they're in breach of s.74 if not sending statements so they'd fail in any attempt to secure the debt regardless.

Just plan on the norm. +6 years from date last acknowledged.

[Batman]

Re: When does an o/d account become SB?

Why is SB land just 5 years in Scotland but 6 in England? Is there any logical reason for this or is it just some form of widely-accepted discrimination?

There must be a viable argument against an additional one year of stress and misery for English folks...yes/no??

Just a thought!

[Never-In-Doubt]

Re: When does an o/d account become SB?

Scottish law mate. Totally different in so many ways.

We get free Uni/Hospital Parking and stuff too. They look after us properly up north and it's not discrimination at all - it's just better in so many ways

[Batman]

Re: When does an o/d account become SB?

Ah fair dos ...yep, free parking is a controversial issue too in many places including where we live...it gets lots of backs up here..;-)