Professional Studies Loan - Statute Barred?

[nt2014]

Dear All,

I don't know whether anyone will be able to definitively answer this question as, having made a quite few enquiries and internet searches, there seems to be a lot of conflicting information.

I took out a professional studies loan in November 2003 with a bank. Repayments were supposed to begin in December 2007. I did not make any repayments, nor did I have any further contact with the bank since about November 2004.

I would like to know whether the 6 years limitation period began in November 2003 (when the loan was taken out) and therefore the loan would have become statute-barred around November 2009, OR whether the limitation period began around December 2007 (when the first instalment was due and not paid) and therefore would not have been statute-barred until around December 2014.

Thank you in advance to anyone who might be able to offer a definitive answer to this point.

[Amethyst]

Re: Professional Studies Loan - Statute Barred?

The limitation period began around December 2007 (when the first instalment was due and not paid) and therefore would not have been statute-barred until around December 2014.

That would be the cause of action and when the contract was breached. It may even be January 2008 depending on the terms of the contract so you could be right on the edge.

Do you have the agreement and terms ? Was it repayment dependent on income or just 1 month after end of studies and thus a standard cca loan ?

Have you received letters chasing this recently ?

Does anything show on your credit file ?

[nemesis45]

Re: Professional Studies Loan - Statute Barred?

The LA 6 year period in this case starts when the contractually due payment was not made after which no further payment or unequivocal written acknowledgment of the debt has been made.
Although a debt becomes Stat Barred in England and Wales the debt still exists and be pursued for payment (short of court action) in Scotland the debt is extinguished.
Are you being chased for the debt, if so by whom?

[nt2014]

Re: Professional Studies Loan - Statute Barred?

Many thanks for getting back to me so promptly. Unfortunately a CCJ was already entered against me in default some time ago but I just wondered if there was a possibility that I may have had a defence against it.

My real problem now is that the other side have seem to have got some sort of interim third party debt order against my bank, with a final hearing set for March 2015.

[nemesis45]

Re: Professional Studies Loan - Statute Barred?

Ok when was the CC claim issued (exact date please)?
It sounds like they a seeking a garnishee in you funds.

[Amethyst]

Re: Professional Studies Loan - Statute Barred?

Ahhh bugger.

Have you done anything since receiving the CCJ in default ? Or were you unaware of the court claim until receiving the hearing notice and third party debt order ?

You will need to speak with the creditor and try and make arrangements to settle this.

[nemesis45]

Re: Professional Studies Loan - Statute Barred?

opps posts crossed Amethyst:ear:

[nt2014]

Re: Professional Studies Loan - Statute Barred?

Unfortunately I do not know when the CC claim was issued. I never received any claim form despite repeated requests.

The CCJ was made on 13 April 2012.

I can also see that there was a "last letter before legal proceedings" dated 21 February 2012.

Is this of any help?

[nt2014]

Re: Professional Studies Loan - Statute Barred?

For the avoidance of doubt, I was asked to attend court twice over the last couple of years to do a means assessment, which I did, but never heard anything back until recently.

[Amethyst]

Re: Professional Studies Loan - Statute Barred?

https://www.justice.gov.uk/courts/pr...l/rules/part72

for info on Third Party Debt Order

Odd that you did means assessments but had no action taken - did they show you couldn't afford to pay ?

[Amethyst]

Re: Professional Studies Loan - Statute Barred?

Unfortunately I do not know when the CC claim was issued. I never received any claim form despite repeated requests.

The CCJ was made on 13 April 2012.

I can also see that there was a "last letter before legal proceedings" dated 21 February 2012.

Is this of any help?

That sounds about right, claim issued in March, Judgment in April.

How much is the debt ?

[nt2014]

Re: Professional Studies Loan - Statute Barred?

The judgment is for approx £21,000.

The first assessment contained an offer of £20 per month which was ignored. The second contained an offer of £100 per month.

[Amethyst]

Re: Professional Studies Loan - Statute Barred?

Ouch.

Do you have any assets ?

[nt2014]

Re: Professional Studies Loan - Statute Barred?

No.

What I don't know is whether to try and speak to the other side before the hearing in March (they've not been very helpful previously) and try to come to some sort of arrangement, or just wait until the hearing and see what the judge says?

[Amethyst]

Re: Professional Studies Loan - Statute Barred?

Do you have much money in your banking account ?

Have a read of the CAB advice

Can you stop the final third party debt order from being made

An interim third party debt order will be made final unless you can show there are good reasons for it not to be made.

You may have good reasons to argue that that the order should not be made final. For example, you may be able to argue that:

your money is in a joint account and the other accountholder does not owe the debt
the debt is for a small amount. You can argue that a third party order is too serious a step and the debt could be paid off quickly by instalments. A judge can refuse to make a third party debt order final if they consider that the sum owed is too small to justify it
making the order will cause a lot of hardship to you or your family
your account is overdrawn
the money in your account belongs to someone else
your money is in a building society or credit union account and you'd be left with less than £1 if the debt were paid. This doesn't apply to other bank accounts.

There are other legal reasons that you might be able to use to argue against an interim order being made final. It's always a good idea to get help from an experienced adviser if your creditor applies for a third party debt order.


What happens if the third party debt order is made final

If the third party debt order is made final and the money is being taken from your bank account, the bank has to pay your creditor either:

the amount in your bank account at the date of the interim order or
enough to pay the balance owing on the county court judgment or other court order.

The third party debt order can only affect money actually in your bank account at the date when your bank received a copy of the interim order. It doesn’t freeze money paid in at a later date.

If your account is overdrawn on the day the third party order is sent to your bank, your creditor won't get their money as there won't be enough funds to pay the debt. If money is paid into your account after this date, it can't be used to pay off your debt.

http://www.adviceguide.org.uk/englan...nk_account.htm