Statute Barred Info.

[David Brent]

Re: Statute Barred Info.

I was doing the same thing last night and thinking of those words ''cause of action''. I feel exactly the same way......what causes them to send a DN, begging letter, etc., in the first place? The missed payment, therefore the missed payment must be the ''cause of action''. Can it be so simple though?

[Amethyst]

Re: Statute Barred Info.

A credit card, Amethyst.

Do you have the terms ?

Usually a credit card is repayable in full after one monthly payment is missed - when it is deemed as missed would usually be when the next monthly payment is due after the one missed - so check the terms as to when they are entitled to ask for the full amount back - usually when you default on your side of the bargain ( ie fail to make a monthly payment)

[David Brent]

Re: Statute Barred Info.

yes but the creditor at that point is only entitled to demand repayment of the missed payment, his claim therefore is for one payment not the full balance. He can only get the full balance if he defaults and terminates

Understood.

- - - Updated - - -

Do you have the terms ?

Usually a credit card is repayable in full after one monthly payment is missed - when it is deemed as missed would usually be when the next monthly payment is due after the one missed - so check the terms as to when they are entitled to ask for the full amount back - usually when you default on your side of the bargain ( ie fail to make a monthly payment)

I shall dig them up and take a look, thanks.

[Amethyst]

Re: Statute Barred Info.



Something along those lines. The first point they MAY take action to reclaim the full balance is one month after the breach. Therefore the 'theory' is that is when the time starts running.

If they do act or not is of no consequence ( in my opinion ).

[David Brent]

Re: Statute Barred Info.

This is it, very similar to above, thanks Amethyst.

Default.
You will be in default under this agreement if you fail to pay the minimum payment on time or any credit limit on your account is exceeded. You will also be in default under this agreement if: (1) you breach any of the other terms of this agreement, or (2) you made any false or misleading statements on your application, or (3) we receive notice of a proposed voluntary arrangement or compromise with your creditors generally, or (4) a bankruptcy petition is presented against you.
If you die or are in default, we may (subject only to giving you any notice of or right to cure the default required by law) close your account and demand payment of the entire outstanding balance in your account and demanded repayment of the whole amount owed by you. Interest will continue to be charged both before and after any judgement against you.

[basa48]

Re: Statute Barred Info.

The terms of the contract are very important too, plus you need to consider at what point the creditor is entitled to demand the full balance as that will be when limitation could be argued to run from.

On some regulated agreements, the creditor is not entitled to the full sum until he serves a compliant notice or demand, in such circumstances the case of Hart may well apply . Some Courts have found that unless and until a compliant notice is served and thus the agreement is terminated then limitation doesnt start to run.

Its a very difficult point to argue

- - - Updated - - -



yes but the creditor at that point is only entitled to demand repayment of the missed payment, his claim therefore is for one payment not the full balance. He can only get the full balance if he defaults and terminates

You are quite correct in all you say, but the main point is that most regulated CC agreements have a clause similar to the ones posted.

That is they may commence action to recover either the overdue amounts or the full amount after taking certain preliminary actions (LBA, DN, termination etc). But I would still say that the *cause* of all this subsequent (albeit required) *action* is the missed contractual payment.

The creditor has no cause to take any action until that point, but may do so once the debtor defaults.

Some creditors take months to issue default notices and even longer to terminate. As those time scales are arbitrary this cannot be right.

[pt2537]

Re: Statute Barred Info.

You are quite correct in all you say, but the main point is that most regulated CC agreements have a clause similar to the ones posted.

That is they may commence action to recover either the overdue amounts or the full amount after taking certain preliminary actions (LBA, DN, termination etc). But I would still say that the *cause* of all this subsequent (albeit required) *action* is the missed contractual payment.

The creditor has no cause to take any action until that point, but may do so once the debtor defaults.

Some creditors take months to issue default notices and even longer to terminate. As those time scales are arbitrary this cannot be right.

Only problem with that is convincing the Court, if the Claimant raises such an argument, then the Court may find its hands bound by Hart,