DCA statement of account

[cupidstunt]

I seem to be getting regular statements of accounts from a couple of debt collection agents.

Even though I have never communicated with them.

Is this a new ploy, perhaps it keeps the debt active and therefore gets round the statue barred issue.

[judgemental24]

Re: DCA statement of account

The DCA being the creditor has to send by law an annual statement. Means nothing as it is computer generated. Just ignore if you have yet to make contact. It has no impact of the statute of limitations unless you acknowledge the debt in writing or make a payment

[nemesis45]

Re: DCA statement of account

I seem to be getting regular statements of accounts from a couple of debt collection agents.

Even though I have never communicated with them.

Is this a new ploy, perhaps it keeps the debt active and therefore gets round the statue barred issue.

Computer generated auto stuffed envelopes probably never seen by human eye, just the required annual statements.

nem

[cupidstunt]

Re: DCA statement of account

Thanks for the info.

Is this a new rule, as only two are doing it, are the others ( 4 of them) breaking the rules by not sending one.

[wales01man]

Re: DCA statement of account

You could contact the others and ask for statements might be a bit silly if you want to avoid paying and would restart the SB clock

[FlamingParrot]

Re: DCA statement of account

I seem to be getting regular statements of accounts from a couple of debt collection agents.

Even though I have never communicated with them.

Is this a new ploy, perhaps it keeps the debt active and therefore gets round the statue barred issue.

Absolutely not! The clock can only be reset by action taken by YOU not the creditor, i.e. if you make a payment or acknowledge the debt in writing. They can send as many letters as they want, that makes no difference whatsoever to the statute barred issue. :thumb:

It seems to be a common urban myth that there has to be six years without any contact from the creditor, that's simple not true. :nono:

[nemesis45]

Re: DCA statement of account

Absolutely not! The clock can only be reset by action taken by YOU not the creditor, i.e. if you make a payment or acknowledge the debt in writing. They can send as many letters as they want, that makes no difference whatsoever to the statute barred issue. :thumb:

It seems to be a common urban myth that there has to be six years without any contact from the creditor, that's simple not true. :nono:

Relevant contact is considered to be the issue of a court claim.
Issue of required statements, requests for information (CCA request SAR) have no effect on the limitation period nor to " normal debt collection letters or requests for payment.

Any " admission of liability " is taken to be an unequivocal written admission that the liability
subsists. Any payment made by the alleged debtor or someone authorised by the debtor will
reset the 6 year clock.

nem

[mystery1]

Re: DCA statement of account

You could contact the others and ask for statements might be a bit silly if you want to avoid paying and would restart the SB clock

http://www.legislation.gov.uk/ukpga/1974/39/section/77A

77AStatements to be provided in relation to fixed-sum credit agreements


[F2(1)The creditor under a regulated agreement for fixed-sum credit must give the debtor statements under this section.
(1A)The statements must relate to consecutive periods.
(1B)The first such period must begin with either—
(a)the day on which the agreement is made, or
(b)the day the first movement occurs on the debtor's account with the creditor relating to the agreement.
(1C)No such period may exceed a year.
(1D)For the purposes of subsection (1C), a period of a year which expires on a non-working day may be regarded as expiring on the next working day.
(1E)Each statement under this section must be given to the debtor before the end of the period of thirty days beginning with the day after the end of the period to which the statement relates.]
(2)Regulations may make provision about the form and content of statements under this section.
(3)The debtor shall have no liability to pay any sum in connection with the preparation or the giving to him of a statement under this section.
(4)The creditor is not required to give the debtor any statement under this section once the following conditions are satisfied—
(a)that there is no sum payable under the agreement by the debtor; and
(b)that there is no sum which will or may become so payable.
(5)Subsection (6) applies if at a time before the conditions mentioned in subsection (4) are satisfied the creditor fails to give the debtor—
(a)a statement under this section within the period mentioned in subsection [F3(1E)] ; [F4or]
(b)[F4such a statement within the period of one year beginning with the day after the day on which such a statement was last given to him.]
(6)Where this subsection applies in relation to a failure to give a statement under this section to the debtor—
(a)the creditor shall not be entitled to enforce the agreement during the period of non-compliance;
(b)the debtor shall have no liability to pay any sum of interest to the extent calculated by reference to the period of non-compliance or to any part of it; and
(c)the debtor shall have no liability to pay any default sum which (apart from this paragraph)—
(i)would have become payable during the period of non-compliance; or
(ii)would have become payable after the end of that period in connection with a breach of the agreement which occurs during that period (whether or not the breach continues after the end of that period).
(7)In this section ‘the period of non-compliance’ means, in relation to a failure to give a statement under this section to the debtor, the period which—
(a)begins immediately after the end of the period mentioned in F5. . . subsection (5); and
(b)ends at the end of the day on which the statement is given to the debtor or on which the conditions mentioned in subsection (4) are satisfied, whichever is earlier.
(8)This section does not apply in relation to a non-commercial agreement or to a small agreement.
[F6(9)This section does not apply where the holder of a current account overdraws on the account without a pre-arranged overdraft or exceeds a pre-arranged overdraft limit.]]

http://www.legislation.gov.uk/ukpga/1974/39/section/78


(4)Where running-account credit is provided under a regulated agreement, the creditor shall give the debtor statements in the prescribed form, and with the prescribed contents—
(a)showing according to the information to which it is practicable for him to refer, the state of the account at regular intervals of not more than twelve months, and
(b)where the agreement provides, in relation to specified periods, for the making of payments by the debtor, or the charging against him of interest or any other sum, showing according to the information to which it is practicable for him to refer the state of the account at the end of each of those periods during which there is any movement in the account.
[F2(4A)Regulations may require a statement under subsection (4) to contain also information in the prescribed terms about the consequences of the debtor—
(a)failing to make payments as required by the agreement; or
(b)only making payments of a prescribed description in prescribed circumstances.]
(5)A statement under subsection (4) shall be given within the prescribed period after the end of the period to which the statement relates.



M1

[Nibbler]

Re: DCA statement of account

It seems to be a common urban myth that there has to be six years without any contact from the creditor, that's simple not true. :nono:

Seems to have been fostered by

(a) Some debt management/DMP companies putting this misinformation on their websites. The cynical amongst us may think they did this so that people would pay their SB debts through them, thinking they were enforceable when this was not the case. Most of these have now been taken down after complaints, but it persists out there from being copied many times.

(b) Misinformation by creditors/DCAs, where motivations are obvious.

(c) Misinterpretation of the old OFT guidance and new FCA CONC where it says in guidance that

Guidance

"If the lender or owner has been in regular contact with the customer during the limitation period, the firm may continue to attempt to recover the debt."

which people may read in isolation to mean it is enforceable in court when it actually is not, and where the later rule is not mentioned.

Rule

"A firm must not continue to demand payment from a customer after the customer has stated that he will not be paying the debt because it is statute barred."


Probably more factors on top of those.......

[FlamingParrot]

Re: DCA statement of account

Seems to have been fostered by

(a) Some debt management/DMP companies putting this misinformation on their websites. The cynical amongst us may think they did this so that people would pay their SB debts through them, thinking they were enforceable when this was not the case. Most of these have now been taken down after complaints, but it persists out there from being copied many times.

I distinctly remember a few years ago, there used to be (no idea if there still is as I don't go there much these days) on MSE a number of official reps from CCCS (now Stepchange). On one occasion, one of them offered to help set up a repayment plan for a SBd debt because "it still exists and is payable". :Cry:

I believe the one exception of sorts would be in the case of mortgage shortfalls subject to a 12 year period under the LA, however, the CML says that lenders should contact debtors within six years of the property being sold for them to be able to pursue the shortfall, although this is only good practice.