Statute Barred Info.

[David Brent]

Please could someone tell me the definitive moment when SB starts as I have seen different answers for this.
For example if my last monthly payment on a credit card was, say, the 9th of May 2009, when would it be SB?

Also, is SB a 100% defence, or are there any instances when a judge has decided against the defendant?

Thanks

David.

[nemesis45]

Re: Statute Barred Info.

The Limitations Act 1980 ( England & Wales)

Debts arising from "simple contract" (CC's unsecured loans etc.)
No action shall be started one six years have elapsed from the date of the cause of action.

For a CC debt.:
The date a contractual payment was due and not made, after which no payment and/or unequivocal written admission of liability was ever made.

If a creditor/debt purchaser/debt collection agency can produce evidence that there was a payment or a letter admitting liability within the relevant 6 year period then the judge will find for the claimant.
Payment can be to any one who at any time in the 6 year period had the right to collect the debt.

nem

[David Brent]

Re: Statute Barred Info.

The Limitations Act 1980 ( England & Wales)

Debts arising from "simple contract" (CC's unsecured loans etc.)
No action shall be started one six years have elapsed from the date of the cause of action.

For a CC debt.:
The date a contractual payment was due and not made, after which no payment and/or unequivocal written admission of liability was ever made.

If a creditor/debt purchaser/debt collection agency can produce evidence that there was a payment or a letter admitting liability within the relevant 6 year period then the judge will find for the claimant.
Payment can be to any one who at any time in the 6 year period had the right to collect the debt.

nem

Thankyou Nemesis, very clear but the only query I have is the date a contractual payment is due. I presume this isn't necessarily exactly one month after last payment b but could be any time in the month after that? Where could I find that date?

David.

[nemesis45]

Re: Statute Barred Info.

Safe bet is one month after the last payment.
e.g. date last payment 01/01 next payment due 01/02 not made clock starts ticking.

nem

[David Brent]

Re: Statute Barred Info.

Safe bet is one month after the last payment.
e.g. date last payment 01/01 next payment due 01/02 not made clock starts ticking.

nem

Thankyou sir, exactly what I wanted to know.

David.

[nemesis45]

Re: Statute Barred Info.

Happy to help!!

nem

[David Brent]

Re: Statute Barred Info.

Been doing some further reading on this and there are many that believe BMW Finance v Hart changes the ''cause of action'', meaning the 6 year period starts not from the missed payment but from the date the DN is issued. Any views please?

David

[stevemLS]

Re: Statute Barred Info.

Safe bet is one month after the last payment.
e.g. date last payment 01/01 next payment due 01/02 not made clock starts ticking.

nem

Wouldn't it be safer to assume two months?

ie, debtor makes payment on receipt of statement 1, statement 2 arrives 1 month after statement 2, payment then falls due 30 days (or whatever) after date of statement 2.

Agreed unlikely that a person in financial difficulty would be so prompt in their payment of statement 1, but nonetheless possible.

[nemesis45]

Re: Statute Barred Info.

Possible steve, but I've not seen it so far.

nem

[Amethyst]

Re: Statute Barred Info.

Been doing some further reading on this and there are many that believe BMW Finance v Hart changes the ''cause of action'', meaning the 6 year period starts not from the missed payment but from the date the DN is issued. Any views please?

David

This might assist http://www.legalbeagles.info/forums/...e-Barred-Debts

[David Brent]

Re: Statute Barred Info.

Thanks Amethyst, very good thread and I notice that there are opposing views on the subject so I'm not really sure which one to take. I did notice, however, that the 2nd post stated that no DCA or Creditor has relied on it in court let alone won on the back of it with any non-HP agreements. This post is nearly 2 years old now, so does anyone know if this still stands? This information is quite critical to me as I have a case where I made the last payment exactly 6 years and 1 month ago, May 2009 and I've had the usual threatening letters, so it's quite possible they may go for court soon.

Thanks
David

[Amethyst]

Re: Statute Barred Info.

As with many things there will be opposing views until a further case clarifies the points of dispute further. I'm not sure if BMW v Hart has been used anywhere

What kind of credit was it that you are 6 years and 1 month from last payment/acknowledgement on?

[David Brent]

Re: Statute Barred Info.

A credit card, Amethyst.

[basa48]

Re: Statute Barred Info.

Thinking about this (because it may affect my own position) the Act specifies 6 years from the *cause* of action.

To my mind, what is the cause of possible action is missing contractual payments. Thus the first opportunity for a creditor to take action is when the debtor misses a payment.

Following on then the *action* is writing a LBA, issuing DNs and terminating the agreement. These are all *actions*, only possible following the *cause* of action.

[pt2537]

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 - - -

Thinking about this (because it may affect my own position) the Act specifies 6 years from the *cause* of action.

To my mind, what is the cause of possible action is missing contractual payments. Thus the first opportunity for a creditor to take action is when the debtor misses a payment.

Following on then the *action* is writing a LBA, issuing DNs and terminating the agreement. These are all *actions*, only possible following the *cause* of action.

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