Statute limitations and acknowledgement --- Help needed

[PHANTOM]

Hello everyone.......

I needed some information with statue limitations and what would amount to an acknowledgement of debt when corresponding with DCA'S and creditors.

Could someone please provide some general information on this topic.

Or point me in the right direction to the appropriate forum and threads dealing with this subject.

THANX.:help:

[MIKE770]

Re: Statue limitations and acknowledgement --- Help needed

---

Creditors are given a fixed period of time to chase their debtors, which is outlined in the Limitations Act 1980. The time scale mainly depends on the type of debt and can be extended at the courts discretion. The time limit begins when you last admitted owing the money or made a payment.
Should the creditor fail to maintain contact with the debtor, for a period of 6 years or more, it is possible to claim that the outstanding debt is “Statute Barred” under the conditions of the Limitations Act 1980.
The Limitations Act 1980 also has additional effects, depending on the type of debt in question:
Unsecured debt

You may have assumed that your creditor has “written-off” a debt if you have not heard from them for a long period. In many cases, it could be down to your failure to inform them of a change of address, but the debt will still exist and creditors are entitled to chase the debt indefinitely (even after the debt has become Statute Barred), however they can only use the legal system to recover the monies for up to 6 years after the last payment was made to the account.
Remember, creditors are still able to pursue an unsecured debt if:

• They have previously obtained a judgement against you (a CCJ);
• You have made a payment to the account within the last 6 years (this includes anyone else named on the credit agreement)
• You have not written to the creditor acknowledging or admitting that you owe the debt during the previous six years.

If a creditor continues to contact you after accepting that a debt is Statute Barred and you have stated that you no longer intend to pay the debt, you may be able to claim harassment contrary to section 40 (1) of the Administration of Justice Act 1970.
County Court Judgement

If the creditor has previously taken you to court and you have received a County Court Judgement, you will be unable to use the Limitations Act 1980 to dispute the debt. If the judgement is over 6 years old the creditor may need the permission of the Court to enforce the debt.
Council Tax

If the Council Tax was due more than 6 years ago then the council are unable to ask the Court for a Liability Order (a liability order allows the council to deduct the Council Tax debt from your wages or benefits). However, it is unlikely that the council will have allowed this to happen, and they will usually have obtained a Liability Order before the 6 years are up.
Mortgage shortfalls

Your mortgage lender may begin chasing you for a mortgage shortfall, which was the result of repossession. The time limit is slightly different for the mortgage lenders as they have 12 years before the debt becomes Statue Barred.
Income Tax and VAT

There is no time limit for these debts to be chased. You can always be pursued for debts owing to HM Revenue and Customs.
Benefit Overpayments

The Department of Work & Pensions (DWP) can chase debts after 6 years without going to court. They reclaim the overpayments by deducting them from current benefits.
What to do if a creditor contacts you after six years

Don't admit to owing the money
Once you agree to owing the outstanding amount within 6 years of the debt being due, then you are required to pay the debt back and the creditor can take steps to have the collection of the debt legally enforced by a court (see above County Court Judgement).
If a payment is made after a 6-year gap, the Limitations Act 1980 is still enforceable and the debt remains Statute Barred. However, in this instance, it is unlikely that you will be able to claim back any payments made after the 6 years from the creditor because you still owe them the money.
If a creditor, who you haven't had any communication with for 6 years contacts you about the debt you should write to them quoting the Limitations Act 1980.

[PHANTOM]

Re: Statue limitations and acknowledgement --- Help needed

Thanks for that MIKE770.

[MIKE770]

Re: Statue limitations and acknowledgement --- Help needed

Thanks for that MIKE770.

You are Welcome!:tongue2:

[KenHo]

Re: Statue limitations and acknowledgement --- Help needed

There is a mistake in :-

• You have not written to the creditor acknowledging or admitting that you owe the debt during the previous six years.

which should read

• You have written to the creditor acknowledging or admitting that you owe the debt during the previous six years.

[EXC]

Re: Statue limitations and acknowledgement --- Help needed

That doesn't sound right does it?

I think what Mike posted came from Payplan and that's what it says but I think it must be a mistake http://www.payplan.com/debt-library/...n-act-1980.php

[MIKE770]

Re: Statue limitations and acknowledgement --- Help needed

Basically it should read:-
You have not written and admitted the debt within the 6 year period.? so saying you Have Not stated any admittance.

[PHANTOM]

Re: Statue limitations and acknowledgement --- Help needed

Hi everyone,

Thanx for the help so far.

However I need a bit more specific information about communicating with DCAs where the debt is close to becoming statue barred so that the SB clock is not reset.

If for example I need to issue a CCA request or SAR request or write any other letter and I head that correspondence with, I DO NOT ACKNOWLEDGE ANY DEBT, would that be enough to ensure that the SB clock is not reset.


THANX.


:noidea::noidea::noidea::noidea:

[Guest]

Re: Statue limitations and acknowledgement --- Help needed

Hi everyone,

Thanx for the help so far.

However I need a bit more specific information about communicating with DCAs where the debt is close to becoming statue barred so that the SB clock is not reset.

If for example I need to issue a CCA request or SAR request or write any other letter and I head that correspondence with, I DO NOT ACKNOWLEDGE ANY DEBT, would that be enough to ensure that the SB clock is not reset.


THANX.


:noidea::noidea::noidea::noidea:

The CCA request is for a copy of the agreement , it does not acknowledge that you owe any money under it, nevertheless it never does any harm to state that you do not acknowledge any debt. The SAR is merely a request for any data relating to yourself, it could be an agreement or anything else, so no acknowledgment there either.

Regarding the commencement of the SB, just to advise that the commencement of the period runs from when the full amount due under the contract becomes due, this is usually around about the default date, thereafter the six year clock can be re-started by payment or acknowledgment.
There are a number of people elsewhere who are being pursued for debts which they think are SB because they have not made a payment in six years, the creditors maintain that the agreement was still live so the SB period had not commenced until sometime after their last payment.

[PHANTOM]

Re: Statue limitations and acknowledgement --- Help needed

Hi everyone,

Thanx for that andy58, that was very useful.

Anybody know of any pre-existing links to threads on this issue of acknowledgement of debt then please post them. Your help will be much appreciated.

THANX.

[Guest]

Re: Statue limitations and acknowledgement --- Help needed

This enlightened forum does not mind the posting of links to another "reputable" forum so here you go.

http://www.consumeractiongroup.co.uk...ht=statute+bar

However if you post "statute bar" into the forum search you will find others.

[FlamingParrot]

Re: Statue limitations and acknowledgement --- Help needed

That doesn't sound right does it?

I think what Mike posted came from Payplan and that's what it says but I think it must be a mistake http://www.payplan.com/debt-library/...n-act-1980.php

There's also this one from ndl: http://www.nationaldebtline.co.uk/en...limitation_act

Hi everyone,

Thanx for the help so far.

However I need a bit more specific information about communicating with DCAs where the debt is close to becoming statue barred so that the SB clock is not reset.

If for example I need to issue a CCA request or SAR request or write any other letter and I head that correspondence with, I DO NOT ACKNOWLEDGE ANY DEBT, would that be enough to ensure that the SB clock is not reset.

A SAR is simply a request for information held about you, it's person-specific not account specific, and it can be sent even when the account has been closed and there's no outstanding balance. You can also send a SAR to an ex-employer, a government department, etc. It doesn't mean you acknowledge any debt. A properly worded CCA request shouldn't acknowledge the debt either.

In most cases where creditors argue that the debt is not SBd despite no payments being made in 6 years or more, they will argue about the exact time when the SBd should start ticking, because it's meant to be from the cause of action, which wouldn't be the day after the last payment, as people often see it. DCAs will also make up phantom payments or even pay the £1 CCA request fee into the account, which is why you should send a CCA letter that clearly states the funds should not be used for any other purpose. What you don't see very often is creditors arguing that the clock was reset by letters sent to them. That doesn't mean you shouldn't be careful what you write, however, if you look through the forums, you'll find this isn't an argument that crops up as often as the ones described above, perhaps because they don't keep all correspondence received.