The 6-year rule

[kentman2006]

Having read through a lot of posts on here, I am just after some clarification on the 6-year statute barred rule.
Is it from the "cause of action" (i.e. a default date), or does it start when the last payment is made towards the debt / or acknowledged it ?

Solicitors/claimants would obviously side towards the latter, but I have seen quoted on here the former, and has this ever been tested successfully ?

Thanks

[Amethyst]

Re: The 6-year rule

It can be complicated, but it is from the cause of action - basically the point at which, under the terms of the contract, the credit card company/loan company COULD terminate/default agreement. It is when they were entitled to do so. It isn't default date as in when its listed as D on the CRA's, it's the point at which the lender can act due to your breach. So if you bought a sofa in Jan 2000 with a deposit and credit on buy now pay in a year, and never paid any of it back ever, then stat barred date would be the month after the first payment was due, so would run from Feb 2001, NOT Jan 2000.



Example of how terms might affect cause of action...

CAPITAL ONE 2004


So that COA quite clearly would be the day you miss the first payment.

Whereas

CAPITAL ONE 2007

15. Default. If: (i) you do not pay at least the monthly payment on time, or (ii) you go over the credit limit on your
account, or (iii) you break any of the other conditions of this agreement, or (iv) you made any statement when
applying for this agreement which is false or misleading in a material respect, or (v) you die, or (vi) a bankruptcy
petition is presented against you, or (vii) you make arrangements with your. creditors for a compromise about how
much you will pay them (sometimes known as a 'voluntary arrangement' or a 'compromise with creditors'), then if
any such breach is irremediable or material or has been persistently committed by you, subject to sending you a
default notice, we may close your account and demand immediate payment of the outstanding balance. We will give
you at least one month's notice to put right any remediable breach. Where this agreement incorporates an
introductory interest rate, such rate may cease if you commit any breach referred to above or on expiry of the period
for its remedy, if later.

The COA may not be until they send you a default notice as they aren't entitled to claim the balance until they have sent you a default notice.

If you've read BMW v Hart you'll see that decision was wholly reliant on the exact terms of the contract.

Has that just confused things more or helped in the foggiest ?