Question about Credit Card Statute Barred

[MrF]

Just a quick one this and it would be interesting to hear anyones opinion.

I have recently received letter from Mortimer Clarke chasing a CC debt from 2008. It's a hefty one - its over £10k. It's also likely a letter before action as it says they've been instructed to start court proceedings etc. They say that in these proceedings they will issue a claim asking the court to make a judgement order, etc, etc.

The debt is very close to SB.

A successful payment was made by DD 15th June 2008 - note that I have scans of all my bank statements going back 25 years!! Everything.

On the 15th July the CC took via DD a payment however this was returned due to insufficient funds. They then tried to take it again 10 days later on the 25th July and this too was returned for the same reason.

On the 15th August 2008 they attempted to take another payment that was the payment due in July plus the payment due for August. This too was returned. They tried this again 10 days later, again returned.

I then made a payment to them on 29th August for the amount of the payment they tried to take on the 15th July.

It is this last payment that confuses me in respect of the Stat barred rule. There was no other contact or payments after this date.

They likely had cause for action once the first payment failed. The payment made on the 29th August obviously acknowledged the debt and restarted the clock and they still have cause for action as there was still missed payments.

So does the clock start 30th August or one month after this i.e. 30th September?

And if it is 30th September then how can I stall them from taking action prior to that without acknowledging the debt??

Mr F

[Guest]

Re: Question about Credit Card Statute Barred

What were the details on the last CC statement regarding the payments you made, did you ever receive a default notice ?

[MrF]

Re: Question about Credit Card Statute Barred

Hi andy

it was an online cc so no statement received. That's a clue to who it is. There will be a default notice. I'll dig it out.

[MrF]

Re: Question about Credit Card Statute Barred

Yes, I do have the default notice. It is dated 1st December 2008. It states an arrears amount of approx 1 month payment and also how much over the credit limit the balance is - which is about 2 months of payments. Note that payments were due on 15th of the month and this means that if the default notice was issued 1st December then the payments 15th November and 15th October had also been missed.

So, to summarise.

A) Last payment made 29th August at which point the account was already in arrears and remained so after this date as no further payments were made.
B) Default notice issued 1st December.
C) No statements as is an online account
D) I have a copy of the CC agreement dated 2001.

Thanks

MrF

[Guest]

Re: Question about Credit Card Statute Barred

The SB period would commence from the point where the creditor was entitled to demand full payment of all sums under the agreement. This is usually after a couple of missed payments, when the creditor is entitled to terminate and send the default notice.

You can argue that this period would start when one payment was missed and get away with it, it would depend on the judge on the day. Personally I would not acknowledge the letter for as long as possible and try and wait them out until after Christmas, the date on the dn is the very latest that they can claim is the start of the SB period

[Kati]

Re: Question about Credit Card Statute Barred

the date on the dn is the very latest that they can claim is the start of the SB period

so it would be SB by early December this year at the latest by my reckoning (am I right??)

[Guest]

Re: Question about Credit Card Statute Barred

so it would be SB by early December this year at the latest by my reckoning (am I right??)

Yes at the latest, provided that you do not acknowledge the debt in writing, of course as soon as they commence proceedings the time limit stops.
I would try ignoring them as long as possible, if they do try and enforce you can always argue SB anyway, like I said it depends on who you get on the day. ONce you claim SB it is for them to show that it is not, the burden of proof is reversed, so this works for the debtor.

[MrF]

Re: Question about Credit Card Statute Barred

Thank you all for your replies.


The Limitations Act states "An action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued". And that's it. It says little else in respect of contracts.

The contract - the consumer credit agreement, under the section "Repayments" - states that "each month you must pay by direct debit, at least the minimum payment given in your statement.........".


Therefore, upon not making the agreed payment, there is a cause for action as you have breached the contract.

The payment due on the 15th July was unsuccessful and was not paid. Neither was the one on the 15th August. There was clearly at this point a cause for action between 15/07 and 15/08. The SB clock would have started ticking at this point.

The last payment was made 29th August and this was insufficient to cover both amounts outstanding. However, this payment would have started the SB clock again as it was a clear acknowledgement of the debt. The initial cause for action still remained as an amount to cover both payments had not been received.

For the reason in the previous paragraph, does the SB date begin the day after 29th August?

Discuss?

[Guest]

Re: Question about Credit Card Statute Barred

There is much case law, regarding this subject, but the accepted definition areas described in my previous post, it is discussed here http://www.legalbeagles.info/forums/...ion&highlight=