Welcome finance statute barred?

[Petemcc]

Im having issues with welcome finance/mkrr

I took out a loan in april 2007 and paid it for 4 months, then they recieved no more money from me, The account was "settled" on my credit record in august 2007

Now MKRR are pursuing me for over 6ooogbp for a debt they "bought"

I have refused to aknowledge the debt and surely as of august 2012 this debt was stature barred under scottish law?

or am i clutching at straws?

[Kafka]

Re: Welcome finance statute barred?

The Limitation Period for an unsecured loan in Scotland is 5 years. You are saying that you never paid anything after August 2007, so if you never paid again or formally acknowledged the debt before August 2012, then it is statute barred. Either ignore them or tell them to bog off.

[Petemcc]

Re: Welcome finance statute barred?

Kafka thanks for clarifying that. I had assumed when they pulled out of my local office and failed to contact me, and the debt was registered as settled that this was the case, but their threatening letters had my partner worried.

[Kafka]

Re: Welcome finance statute barred?

These people are bottom feeders - don't let them get to you.

[labman]

Re: Welcome finance statute barred?

This explains SB well. It may not have been SB in August 2012, but should be by now. Have a read:

[Elwinston28]

Re: Welcome finance statute barred?

Hi my husband is in a similar situation. He took out a small loan with welcome in 2004. He defaulted not long after, before we met. Last year, completely out of the blue, we received a claim form from Northampton cc stating a solicitor was pursuing the debt and applying for a ccj. We completed the claim form, the ccj was awarded regardless of the information we provided and the repayments the court stated we must pay are higher than we can afford. We are however paying as they then sought an attachment of earnings and we don't want my husbands employer informed.

I suppose my main question is should they have been able to pursue this through he Courts as it was over 6 years old and we had not received any correspondence from welcome in that time?
secondly, do I have grounds to apply to have the judgement set aside?

[ODC]

Re: Welcome finance statute barred?

The six years comes into effect usually 1 month after the last payment. If a period of 6 years elapses without you making payment or WRITTEN acknowledgement then the Debt is barred by Statute and CANNOT be enforced through the courts. If you believe this to be the case you MUST appeal immediatly

[Elwinston28]

Re: Welcome finance statute barred?

Thank you, would the appeal be through the process to have a judgement set aside?

[labman]

Re: Welcome finance statute barred?

The six years comes into effect usually 1 month after the last payment. If a period of 6 years elapses without you making payment or WRITTEN acknowledgement then the Debt is barred by Statute and CANNOT be enforced through the courts. If you believe this to be the case you MUST appeal immediatly

Therein lies the problem. The six years comes into effect from the 'cause of action.' The cause of action for a simple contract debt is usually when the contract / agreement states the creditor can take court action because of the arrears due.

[Elwinston28]

Re: Welcome finance statute barred?

Therein lies the problem. The six years comes into effect from the 'cause of action.' The cause of action for a simple contract debt is usually when the contract / agreement states the creditor can take court action because of the arrears due.

sorry, I don't understand this? Could you explain in "simple" terms please????

[labman]

Re: Welcome finance statute barred?

sorry, I don't understand this? Could you explain in "simple" terms please????

No problem. Most agreements will state when the creditor (in this case Welcome / MKKR) can take court action against you for money owing. Usually this is either one or two months after the account formally goes into arrears. This date is the 'cause of action' and the date which sets the 6 year (5 in Scotland) clock ticking.

[Elwinston28]

Re: Welcome finance statute barred?

Nothing has been paid since 2004 but we heard nothing until 2012 when a company called IND wrote to him, then the claim form from Northampton. I am surprised the Court allowed the CCJ. Sorry for all the questions but how do I go about appealing? Is it through Northampton using form N244?

[ODC]

Re: Welcome finance statute barred?

Did you advise the Company that the alleged debt was Statute Barred

[Elwinston28]

Re: Welcome finance statute barred?

No I didn't even know what that meant until today!! It all seemed to happen so quickly we were more concerned about stopping the attachment of earnings and repaying the debt, it's only recently when looking through our credit reports and sorting our finances we realised there may be a problem with this. The original loan doesn't appear on my husbands credit report.

[ODC]

Re: Welcome finance statute barred?

You could appeal this yourself and you will get plenty of help on here. However bearing in mind the seriousness of it and the implications of a CCJ I would be inclined to advise you to contact a solicitor