Lowell statute barred

[Jayne55]

Hi

I have received court papers from Lowell relating to a loan taken out in 2014. The last payment made by me was 20 Oct 2014 so I have filed a defence stating this is statute barred however Lowell have now written to me stating this is not statute barred. Can someone advise if it is or not?

[ostell]

So were there payments made or the debt admitted ? Have you asked them why they think it is not statute barred

[Jayne55]

No payments made since then and I haven't admitted the debt. They have sent me a letter saying the following

"Please note that as this account was entered into by you on 7 July 2014 for a 36 month fixed sum loan the account the date of the cause of action was on 7 July 2017. Our client therefore had until 7 July 2023 to issue legal proceedings against you for the debt. As this was done on 4 January 2021 this was well within the limitation period and therefore is not statute barred."

My last payment was made in October 2014

[Matty B]

To be honest I think they have a point. I think the limitations clock runs from the expiration of a DN so if you last made a payment in Oct 2014, your first missed payment was Nov 2014 so Default Notice would be issued January onwards meaning the SB date would start from the remedy date. Maybe someone else can say if they need to issue a DN even once the loan had run its course. How much are they claiming?

[Jayne55]

They are claiming £3938.22.

What do I do if they are correct? Do I accept their offer? I really need it clarified before I respond to them

[Jayne55]

Anyone please?

[ploddertom]

Celestine

[pt2537]

No payments made since then and I haven't admitted the debt. They have sent me a letter saying the following

"Please note that as this account was entered into by you on 7 July 2014 for a 36 month fixed sum loan the account the date of the cause of action was on 7 July 2017. Our client therefore had until 7 July 2023 to issue legal proceedings against you for the debt. As this was done on 4 January 2021 this was well within the limitation period and therefore is not statute barred."

My last payment was made in October 2014

The question to answer here is when was a default notice served?

Secondly, if no default notice was served, when was a demand for payment made



These two points will probably guide you as to where you stand on limitation.

If it is a fixed term loan that runs for three years, then the right to sue would normally arise on expiry of the loan agreement unless the creditor serves a default notice earlier

[Jayne55]

Thank you. I will ask them for copies of any default notices and take it from there. That's really helpful!