You in Trouble with Debt?

[The Rivet]

Inspired by another thread about debt and pay day loans I wanted to spread the word about a little known set of rules.

It's called the 'Statute of Limitations act'..........If you are being hounded by agencies after old debts you really need to look up. 'The Statute of Limitations Act'. It saved my wife and I over 18K

 

[chucky1973]

in a nut shell what does it mean?

 

[Gazwag]

Isn't it only applicable if your creditors have pursuded the debt for six years or something or other - ie if they wrote you a letter 2 years ago you cannot use that route.

 

[Westdene Seagull]

in a nut shell what does it mean?

It means any debt over six years old and for which you've had no communication about for six years is unenforceable. It's becoming very common for the main lenders to sell bad debt portfolios to aggressive Debt Collection Agencies at around 12p in the pound. These DCAs often start chasing debts that have laid dormant and so SoL can be claimed on some of them.

The other thing to consider if your debt has been sold is to offer an amount in full and final settlement. So if you have a debt of £10k the DCA will have brought it for around £1200. Offer £4k ( assuming you can do so ! ) and most DCAs will accept your offer for the quick profit.

 

[chucky1973]

It means any debt over six years old and for which you've had no communication about for six years is unenforceable. It's becoming very common for the main lenders to sell bad debt portfolios to aggressive Debt Collection Agencies at around 12p in the pound. These DCAs often start chasing debts that have laid dormant and so SoL can be claimed on some of them.

The other thing to consider if your debt has been sold is to offer an amount in full and final settlement. So if you have a debt of £10k the DCA will have brought it for around £1200. Offer £4k ( assuming you can do so ! ) and most DCAs will accept your offer for the quick profit.

thanks, I didnt know that

 

[Ernest]

Isn't it only applicable if your creditors have pursuded the debt for six years or something or other - ie if they wrote you a letter 2 years ago you cannot use that route.

Wrong, only applies if you respond to the letter. If you ignore it they can send you a thousand letters and it doesn't count

 

[Gazwag]

Wrong, only applies if you respond to the letter. If you ignore it they can send you a thousand letters and it doesn't count

So what's to stop everybody just ignoring letters and not pay for anything

 

[Postman Pat]

So what's to stop everybody just ignoring letters and not pay for anything

Isn't this the Crystal Palace business model??

Sorry it was an easy set up that I couldn't miss.

 

[Ernest]

So what's to stop everybody just ignoring letters and not pay for anything

To be honest nothing, if you don't own your own property, car or anything of value that could be seized then what can they do ?

 

[Westdene Seagull]

thanks, I didnt know that

I should have added - if you're in a DMP do not do this as it breaks your DMP.

 

[chucky1973]

I should have added - if you're in a DMP do not do this as it breaks your DMP.

sorry, have thought about it, but cant work it out......DMP means what (Debt management programme?)
(if its really simple, then I apologies inadance for being stupid!!)

 

[bha100]

Because debtors are becoming savvy more than ever now about avoiding paying back debts DRC's are adopting tactics that turn your unsecured debt secured against any property you own, this is done by using a charging order.

Charging orders - The Office of Fair Trading




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

in simple contracts, 6 years
in contracts under seal, 12 years.
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.

These 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 12th edition at Chapter4.). These debts are completely extinguished and cannot be enforced. Once the prescriptive period expires the debt cannot be allowed as a deduction.

 

[Vegas Seagull]

Because debtors are becoming savvy more than ever now about avoiding paying back debts DRC's are adopting tactics that turn your unsecured debt secured against any property you own, this is done by using a charging order.

Charging orders - The Office of Fair Trading




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

in simple contracts, 6 years
in contracts under seal, 12 years.
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.

These 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 12th edition at Chapter4.). These debts are completely extinguished and cannot be enforced. Once the prescriptive period expires the debt cannot be allowed as a deduction.

Charging orders have been 1st & easy choice for decades

 

[Vegas Seagull]

Inspired by another thread about debt and pay day loans I wanted to spread the word about a little known set of rules.

It's called the 'Statute of Limitations act'..........If you are being hounded by agencies after old debts you really need to look up. 'The Statute of Limitations Act'. It saved my wife and I over 18K

Irrelevant in 99% of cases which are live and current & you should have specified this, disgraceful new post

 

[Ernest]

Irrelevant in 99% of cases which are live and current & you should have specified this, disgraceful new post

No it is not, if you don't own a house, a car or any items of value and thus decide to walk away from your debts there is very little that the banks and the leeches they sell the debt onto can do. You then wait your 6 years without credit and after that the debts fall off your credit file, the statute of limitations apply so no legal action can be taken in respect of the original debt and then you will find the banks bombarding you asking if you want a loan or credit cards again.

Takes big balls to do but many have done it , mind you the banks don't want people knowing this.

 

[sully]

Sometimes it's worth querying alleged debts if you have no recollection of them, though.

We recently got a letter from a debt collector that related to a South West Water account.

We ignored the debt collector, but challenged South West Water to provide details of the alleged debt and explain why they'd never mentioned it before.

The final result was that rather than us owing them money, they paid us £180!

 

[sully]

No it is not, if you don't own a house, a car or any items of value and thus decide to walk away from your debts there is very little that the banks and the leeches they sell the debt onto can do. You then wait your 6 years without credit and after that the debts fall off your credit file, the statute of limitations apply so no legal action can be taken in respect of the original debt and then you will find the banks bombarding you asking if you want a loan or credit cards again.

Takes big balls to do but many have done it , mind you the banks don't want people knowing this.

I think you've confirmed that Vegas was right!

Not many folk own absolutely nothing and can maintain that for 6 years.

And in any case, why should you not pay your debts? Can you lend me a few grand. I'll not be paying it back, by the way!

 

[Colossal Squid]

To be honest nothing, if you don't own your own property, car or anything of value that could be seized then what can they do ?

Is the right answer.

Too much unsecured lending in this country has lead to millions of people with nothing to lose just defaulting and forgetting about it.

It's no wonder the country's up the swanny

 

[Ernest]

I think you've confirmed that Vegas was right!

Not many folk own absolutely nothing and can maintain that for 6 years.

And in any case, why should you not pay your debts? Can you lend me a few grand. I'll not be paying it back, by the way!

Pay your debts or pay the extortionate amount of interest and fees that they put on top ?

 

[bha100]

I disagree while they may have been around for years a court would rarely granted against individuals for unsecured debts such as credit cards or personal loans over the last few years DRC's have started using them and getting them granted in courts,These stats tell the story, from wiki
In 2006 the courts approved 72 per cent of applications from lenders to secure customers' debts against their homes, up from 60 per cent in 2000." On Sunday 13 April 2008 the Sunday Mirror reported[5] "An alarming 97,017 'charging orders' were made in 2007 - up from 66,911 in 2006."


Last year the rules changed that make it even easier for them to get a charging order

http://moneyaware.co.uk/2012/09/charging-orders-are-changing/