Tesco Credit Card - statue barred and CRA default question.

[debtor_john]

On 6th November 2012, Tesco sent me a formal default notice, also enclosed was notification that they would report a default to the CRA's if the arrears was not paid. Both notices provided a time limit of 25 days. All payments stopped earlier in the same year and none have been made since.

Am I correctly assuming the debt is now statute barred?

The default was not registered with the CRA's until 3rd October 2014, can I get this amended, without resting the statute bar clock?

Interestingly the debt was sold to Lowell in April 2018 - as an unenforceable dead duck I presume?

Thanks in advance for your help.

[debtor_john]

Although they did send me a default notice in November 2012, I have just found a scan of another one they sent me in April 2012.

I assume it is the first one that matters?

To confirm there has been no contact (from me) or payments since before the first default notice was received.

[jaguarsuk]

The Information Commissioner’s Office (ICO) says :

“As a general guide, [a default may be recorded] when you are 3 months in arrears, and normally by the time you are 6 months in arrears.

There are exceptions to this which may result in a default being recorded at a later stage, such as secured or long term loans e.g. mortgages, or if the product operates in a more flexible way e.g. current accounts, student loans, home credit."

One could argue the nature of a credit card is that it falls into the "more flexible" operation products.

It was sold to Lowell for them to try and get the money back out of you, so as it stands assuming they can come up with all the evidence documentation they'd need Lowell have until 3rd October 2020 to bring a claim.

I would send a Subject Access Request Letter to Tesco to see if they send a further letter out for the October 2014 default date. If not make a complaint to them and ask that they correct the date per the last letter they sent. If they refuse then complain to the ICO to have it changed.

Either way you want it in writing confirmed that they incorrectly logged the default date for if Lowell come trying to claim against you.

[debtor_john]

Thanks for the response,

But surly the clock for the purposes of the statute of limitations starts when you receive a default notice per S.87(1) of the Consumer Credit Act? This was first received in April 2012. April 2012 plus 6 years = April 2018.

That is my reading of Debt Camel, or have I got this wrong?


https://debtcamel.co.uk/statute-barr...ause_of_action

Edit; A letter has just popped through the post box from Lowell increasing there offer of a discount from 50% to 60%.

[jaguarsuk]

Thanks for the response,

But surly the clock for the purposes of the statute of limitations starts when you receive a default notice per S.87(1) of the Consumer Credit Act? This was first received in April 2012. April 2012 plus 6 years = April 2018.

That is my reading of Debt Camel, or have I got this wrong?


https://debtcamel.co.uk/statute-barr...ause_of_action

Edit; A letter has just popped through the post box from Lowell increasing there offer of a discount from 50% to 60%.

No because the notice specifically states a date by which action must be taken and therefore that date becomes the date for the cause of action.

A creditor might have many reasons not to register the default and attempt to resolve it amicably later, thus reissue the default notice when those avenues fail. It's more likely that their admin is horrendous, but until you SAR them you won't know.

I don't know why April 2018 would be any better for you than December 2018 as either way it's statue barred.

As currently registered though Lowell have until Oct 2020 as advised.

[debtor_john]

I don't know why April 2018 would be any better for you than December 2018 as either way it's statue barred.

As currently registered though Lowell have until Oct 2020 as advised.

Thanks again,

Just a bit confused about this bit:

So it is statute barred?

Lowell have until October 2020 to do what? You say claim against me, but if it is statute barred it dosn't matter? Obviously that is also when the default drops off as it stands.

[jaguarsuk]

Thanks again,

Just a bit confused about this bit:

So it is statute barred?

Lowell have until October 2020 to do what? You say claim against me, but if it is statute barred it dosn't matter? Obviously that is also when the default drops off as it stands.

The default registered against you unless corrected does not make it Statute Barred, so Lowell by the registered default have until Oct 2020 to file a claim. As soon as a claim form is issued the clock stops.

As I said in post #3 you need to establish whether a further default notice was issued and if not why the date has been recorded as it has, then get it corrected to make it Statute Barred. If you do not Lowell and the court will work to the registered date.