Groups

    help please statute barred what does this mean

    ive had a letter this morning of a company called lowell saying i owe them money as they bought an old abbey debt i had, i have been looking on the net and it seems my debt may be statute barred?
    how do i find out if it is or what this means exactley.
    thanks in advance for any help offered and sorry if i have put this in the wrong place

    12 Comments

    Taken from the HMRC site

    IHTM28384 - Law relating to debts: statute-barred debts

    If a lender allows time to pass without receiving any payment an action for recovery may become barred.

    Under the Limitations Act 1980 the time limits are
    [LIST]
    [*]in simple contracts, 6 years
    [*]in contracts under seal, 12 years.[/LIST] If the debtor acknowledges the debt in writing or makes a part payment within the original limitation period, then the time limits start to run again from the date of acknowledgement or the date of payment.

    Even though the lender may be barred from pursuing recovery, a debtor may decide to pay the debt after the expiry of the time limits. Because of this you should allow a debt which is otherwise statute-barred if the personal representatives pay the debt and you receive evidence that the payment has been made.

    The above instructions do not apply to debts in Scotland. Under Scottish law, if a lender allows time to pass without receiving any payment an action for recovery may become barred under the Prescription and Limitation (Scotland) Act 1973. (For details of this Act see Gloag and Henderson 10th edition at Chapter 15.). These debts are completely extinguished and cannot be enforced. Once the prescriptive period expires the debt cannot be allowed as a deduction.

    Statute Barred

    A debt is considered Statute Barred if a creditor has not contacted a debtor for a period of 6 years and no action has been taken on the account.

    Although the debt is still legally acknowledged as being owed, the creditor is not able to take any legal action against the debtor in order to recover the debt. It is considered unfair if a creditor or debt collector misleads the debtor into believing the debt is still legally recoverable. It is also considered an unfair practice if the creditor or debt collector press for payment after the debtor has stated they will not be paying the money owed. This could amount to harassment contrary to Section 40(1) of the Administration of Justice Act 1970.


    Taken from:
    debtquestions.co.uk/leg…php

    so basically if debt collectors chase you and you dont get in touch or make payment after a period of 6 years has elapsed theres nothing they can do???? nah that cant be right??

    Does that mean somebody is entitled to money back

    tinkerbell28;4004170

    Yes it is, believe it or not...............:)

    cripes and to think hubby paid off his bank loan:w00t: lol

    Mardyass;4004128

    so basically if debt collectors chase you and you dont get in touch or … so basically if debt collectors chase you and you dont get in touch or make payment after a period of 6 years has elapsed theres nothing they can do???? nah that cant be right??



    No, if a company doesn't chase you for a debt, after 6 years the debt becomes statute barred, so the company lose out. Even if they sell this debt on after a 6 year period there is nothing anyone can do to reclaim the debt.

    ILIKEBARGAINSME;4004157

    Does that mean somebody is entitled to money back



    By this I mean if you paid up cos of threats from a debt collecting agency - after 9 years - several house moves - no communication received until after 9 years - are you entitled to your money back?

    tinkerbell28;4004300

    No as the money was still owed, it's just the creditor could not legally … No as the money was still owed, it's just the creditor could not legally make you pay, if the debt gets paid the creditor gets their money back



    OK Thanks for that

    Banned

    doesnt it have to be where the company has not tried to make contact? so if its on record they phoned you 3 years ago, although you werent home so never recieved the call then it isnt statute barred

    Banned

    so if they contact you by phone and you don't answer or send you a letter and ignore it, does that mean that the time period starts again?

    davedave3;4004787

    so if they contact you by phone and you don't answer or send you a letter … so if they contact you by phone and you don't answer or send you a letter and ignore it, does that mean that the time period starts again?



    No the time clock will only restart if the alleged debtor makes any contact/reply/payment in reference to the debt owed.

    If the debt is now with Lowell then you can most probably assume that the debt has reached the bottom of the barrel and most probably past the 6 year limit.

    Loads of info and help here if you want it. consumeractiongroup.co.uk/forum/

    Original Poster

    wow thanks all so much for your help very appreciated xx
    Post a comment
    Avatar
    @
      Text
      Top Discussions
      1. Whoop! Next Sale VIP Slots have been released77
      2. Just heard this...2 ★★★★★★★★★★★★★★ congrats to all on 392k ★★★★★★★★★★★★★★7767121
      3. TechInTheBasket?47
      4. word association Game73844443

      See more discussions