can an overdraft ever become statute barred

[abraphanpy]

can an overdraft ever become statute barred . if the account has been inactive ( not used to pay in or out ) for 8 years . no request for repayment EVER / no default notice / no letters from bank / no change of address/ no account close .. thoughts please

[Amethyst]

Re: can an overdraft ever become statute barred

You should check the terms of you account and overdraft as many overdrafts renew annually, so if just no activity the bank could have a cause of action ( if overdraft is within overdraft limit and hasn't been defaulted) to recall the overdraft at the renewal point.

[abraphanpy]

Re: can an overdraft ever become statute barred

over draft has exceeded the limit by ALOT and hasn't be defaulted , went over agreed overdraft over 8 years ago - surely they should have closed the account or at minimum asked for payment to reduce it ? barkies hhave never even sent a letter or notice about it .

[nemesis45]

Re: can an overdraft ever become statute barred

over draft has exceeded the limit by ALOT and hasn't be defaulted , went over agreed overdraft over 8 years ago - surely they should have closed the account or at minimum asked for payment to reduce it ? barkies hhave never even sent a letter or notice about it .

Barclays and Barclaycards management of accounts is appalling the ploy seems to be to allow cards and OD's to accumulate interest an charges for considerable periods then default just prior to selling debt off.

nem

[abraphanpy]

Re: can an overdraft ever become statute barred

iv been waiting for years for them to do something.. surely at the annual review they supposed to have - they should at least write a letter to say your account is accumulating interest in arrears :-) it goes up almost £800 each year

[abraphanpy]

Re: can an overdraft ever become statute barred

As i understand it overdraft are like unsecured loans and dont come under section 5 of limitations act but section 6 .. which is below : what exactly does section 6 mean ?? 6 Special time limit for actions in respect of certain loans.
(1)Subject to subsection (3) below, section 5 of this Act shall not bar the right of action on a contract of loan to which this section applies.
(2)This section applies to any contract of loan which—
(a)does not provide for repayment of the debt on or before a fixed or determinable date; and
(b)does not effectively (whether or not it purports to do so) make the obligation to repay the debt conditional on a demand for repayment made by or on behalf of the creditor or on any other matter;
except where in connection with taking the loan the debtor enters into any collateral obligation to pay the amount of the debt or any part of it (as, for example, by delivering a promissory note as security for the debt) on terms which would exclude the application of this section to the contract of loan if they applied directly to repayment of the debt.
(3)Where a demand in writing for repayment of the debt under a contract of loan to which this section applies is made by or on behalf of the creditor (or, where there are joint creditors, by or on behalf of any one of them) section 5 of this Act shall thereupon apply as if the cause of action to recover the debt had accrued on the date on which the demand was made.
(4)In this section “promissory note” has the same meaning as in the M1Bills of Exchange Act 1882

[nemesis45]

Re: can an overdraft ever become statute barred

iv been waiting for years for them to do something.. surely at the annual review they supposed to have - they should at least write a letter to say your account is accumulating interest in arrears :-) it goes up almost £800 each year

Could be tough choices time., make contact and query the account, which will obviously alert the simpleton at Barclays.
Or continue to ignore.

When was the last proper transaction made on the account? If a default should/could have been place early it is possible
to get a default back dated.

nem

[Amethyst]

Re: can an overdraft ever become statute barred

Well, an overdraft doesn't have a specific repayment date so the cause of action isn't until they make a demand for repayment of the overdraft.

This is why terms are important in overdraft cases, if the overdraft renews annually they should get agreement from you that you wish it to else demand repayment.

8 years is excessive if the account was already over its overdraft - it could fall into a s.140 cca 1974 unfair relationships reference the charges and how they behave ( ie the bank has complete control over how long the debt can continue increasing and can apply charges indefinately, and mostly charges upon their own charges )

When you said you haven't had any letters from the bank - do you mean you have had no statements etc either? You should at least get an annual statement of interest, and notice of charges etc etc ? How do you know it is accruing about £800 a year in charges? - through your credit file ?

[abraphanpy]

Re: can an overdraft ever become statute barred

I still get statements .. but nothing else, i havent used the account since it went over the overdraft limit . I have been reading section 6 of Limitations act and it says this >> section 5 of this Act shall thereupon apply as if the cause of action to recover the debt had accrued on the date on which the demand was made.<< dos't that mean its statute barred automatically on demand of repayment as no payment or contact has been made in 6 yrs ?

[Amethyst]

Re: can an overdraft ever become statute barred

nope it means the cause of action is on the date of the demand - then add the 6 years to hit statute barred.

How much (ish) was the OD when you ditched the account and how much is it now? And is there a reason you're looking at it now (is it on your credit file etc ) ? wait for it to eventually get sold off to a DCA and deal with it then? or get in while it's still with the bank?

How much (if you know) of the £800 a year is interest vs charges ?

[abraphanpy]

Re: can an overdraft ever become statute barred

the agreed over draft was 1800 .. it is now 5800 , im looking into it now because it was an additions account ( no longer available ) and i couldnt access the additions when i wanted to use them, so i was thinking of claiming for miss sold, as i defo asked the bank how i use them but response wasnt helpful and didnt get the info about using them. aint got the foggies how much is interest/charges i would have to open a statement to look ( i tend to through in the bin as i dont use the account )

[abraphanpy]

Re: can an overdraft ever become statute barred

what is section 6 of the limitations act then? if there isnt a limitation why is it in the act ( lol ) i mean what is meant by 'accrued' doesn't it mean earned in the sentence ' if the cause of action to recover the debt had accrued on the date on which the demand was made < then section 5 applys .. thats how i read it, what else can it mean if not that .

[abraphanpy]

Re: can an overdraft ever become statute barred

6- Special time limit for actions in respect of certain loans
1)Subject to subsection (3) below
3)Where a demand in writing for repayment of the debt under a contract of loan to which this section applies is made by the creditor section 5 of this Act shall apply as if the cause of action to recover the debt had accrued on the date on which the demand was made.

It dosn't say' Occurred' it say 'Accrued' .. different meaning. I need to get this clarified by the pro's .. :-) where do i go to get an explanation of statues ??

[abraphanpy]

Re: can an overdraft ever become statute barred

For example the contract may have been entered into 10 years ago but the breach occurred two years into the existence of the contract – the claim for breach of contract must then be brought within 6 years of the date the breach occurred. or section section 5 applys

[Amethyst]

Re: can an overdraft ever become statute barred

the cause of action accrues when the demand is made ( sec 6) ( or when the demand should have been made - ie when they were entitled to make the demand - ie when you breached (is going over overdraft limit a breach that entitles them to recall whole debt ( terms) - or renewal? )

then section 5 kicks in ( ie 6 years from cause of action)

That's just my understanding.

Expert wise, and being as you have misselling and potentially unfair relationship on the charges then it might be worth speaking with [MENTION=551]pt2537[/MENTION]