Restons threat of further legal action

[Daveindebt]

Hi, I have a debt with Lloyds credit card from almost 20 years ago which was taken on by Restons and threatened court action, (This was over a year ago)Not knowing that the debt was Statute Barred or even what this meant i contacted them and via the court settled on a payment of 50 pounds a month, i realize there is nothing i can do now as in replying i have admitted the debt 14k. Retons have contacted me again asking for a new financial statement probably with the view to increasing my payments? Restons state if i do not respond with my new financial statement they will cancel my payment agreement with them and commence further action to recover the debt ie Bailiff removal of goods etc. I have been paying Restons for over a year and have never missed a payment or been late with a payment. What can i do? is there any way out of the debt (too late probably) do i have to do a new financial statement? can they take further action as there has been no default on the agreement? I would be very grateful of any advice someone could give me on this issue.
Thank you
Dave.

[james_law]

Generally speaking a creditor can not make you pay more than you can afford. You cant pay what you dont have. However there are exceptions to this and sometimes a creditor can dictate how much you should pay.

Are you financially able to pay more than £50?
Would your statement confirm you are able to pay more than £50?

[Daveindebt]

Hi James_Law, and thanks for taking the time to read my post, I struggle every month just to pay my household bills and always have to borrow to get through the month and then payback when my wages hit the bank, so i am constantly short of funds. The issue with Restons is i don't want the hassle of doing a new financial statement and then the wrangling with them as they are so awkward.

[james_law]

I fully appreciate the difficult situation you are in.

As much as they are under an obligation to not take from you what you cant afford, they obviously do what the money owed back as quick as possible. Obviously I dont need to point out to you paying £50 a month is going to take a long long time to clear £14k.

I don't suppose they said anything along the lines of we will review your payment plan in say 6 months or a year?

If you can only pay £50 back then I personally would co operate with them, fill in the form and discuss with them. Its in their interest to negotiate out of court and assess what you can realistically can pay. Again if £50 is all you can pay then it would be in their interest to accept that because at least you would be paying something. From what you have said going to court would result in the same amount being paid.

Hope that helps.

[Amethyst]

How long was there between you defaulting on the debt and next making a payment / acknowledging the debt ?

Had you made any payments at all between default ( over 10 years ago?) and last year when you started the £50 payments ?


Limitation Act

29

(7)Subject to subsection (6) above, a current period of limitation may be repeatedly extended under this section by further acknowledgments or payments, but a right of action, once barred by this Act, shall not be revived by any subsequent acknowledgment or payment.

[james_law]

Sorry yes as amethyst has rightly pointed out the limitation act. I believed if payment was made it would recommence the debt but it does not, so i apologise for my error.

After a small bit of research, aslong as you did not write to them acknowledging the debt, there is no court action that has been processed or you did not make payment between the cause of action and 6 years after. Then the debt will very likely be statute barred.

[Daveindebt]

Thank you both for your time and help i really appreciate it,sadly thinking back for a long time i used a debt management company who made payments on my behalf and charged me accordingly! (Kensington Finance) i used this company for a few years to bury my head in the sand so it seems i will have to bite the bullet and just carry on as i am.
Thank you.