Statute barred ..... Still 6 years?

[willtheywontthey]

Been dwelling. I recall some discussion on another forum over a year ago and it seemed that there was a possibility of the statute barred time period being reduced. Does anybody know anything about this? Was there some body looking into this and what happened?

Am I right to assume that the existing 6 years start from when payments cease?? What happens when the six years are over? Can they still send letters for payment as debt still 'exists'? Do the credit reference agencies automatically cancel all negative details and default is cancelled? Can my credit history be cleared after 6 years? (long time still to go.) Why 6 years anyhow?

Do dcas or ocs start some sort of different strategy closer to 'the end'?

[Pinky69]

Re: Statute barred ..... Still 6 years?

It's still 6 years. There was discussion in Europe about reducing it to 3 years but so far it hasn't happened. It is 5 years if you live in Scotland and in Scotland the debt is completely extinguished under the Prescriptions and Limitations Act 1973. They can ask for it in England but once you have informed them it is Statute Barred and no payment will be made they have to go away.

The period for Statute Barring commences from the date on which you made the last payment as long as you haven't acknowledged the debt since then. Any acknowledgement or payment before the 6 years is up resets the clock and the countdown to 6 years starts again. Once it is Statute Barred it is Statute Barred for all time.

The credit report is different. The 6 years starts from when the default is entered and that may be later than when the Statute Barring commences - you may be defaulted after you have made the last payment eg the period during which they send letters saying you are in arrears and asking for payment then finally send you a Default Notice then Termination. That can be several months after you made the last payment.

There is nothing about the period of 6 years on credit reports in law. It is simply an agreement between the banks and the credit reference agencies which is recognised and accepted by the Information Commissioners Office.

[Caspar]

Re: Statute barred ..... Still 6 years?

Pinky - you may be right, but I thought the 6 years started from the date of the first missed payment, rather than the date of the last payment. I know it only makes one months difference in most cases, but I'd like to know. I'll have a look at the S of L and post back!
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"An action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued." (Limitations Act 1980)

I've always taken the cause of action to be the first missed payment as that is the action that shows the debtor has stopped paying.

Can anyone confirm which of us is right, purely for accuracy's sake please?

[TUTTSI]

Re: Statute barred ..... Still 6 years?

Statute barred debts are still 6 years and the six year starts from the time of the last comunication. http://www.google.co.uk/#sclient=psy...w=1010&bih=535

[Caspar]

Re: Statute barred ..... Still 6 years?

You were right Pinky - we live and learn. Beautifully explained by Payplan at the top of the link Tutts gave - thank you! The date of the last payment or the date of the last communication acknowledging the debt. It is thus very important if pursuing this route to head letters "I do not acknowledge this debt."