Author Topic: advice needed on small debt  (Read 6207 times)

theassociate

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  • Posts: 4
Re: advice needed on small debt
« Reply #15 on: Mar 11, 2011, 03:53:43 PM »
Has the debt been acknowledged within the 6 years.. by acknowledgement I mean have you made any payment to the debt within 6 years.. if they have just simply writing to you then this does NOT count as acknowledgement if you have not replied in writing to their corispondance.   What type of debt is it?  as not all debts can be statue bard after 6 years e.g TAX and Benefit Overpayments.


If its a credit debt and you have not made any payment in the past 6 years to the account (regardless if they have writing to you)  send them this letter.  Plus after 6 years of non payment of the account it can be lifted off your credit file you can apply to get it taken off.


Dear Sir/Madam
Account No:
Without prejudice
You have contacted us regarding the account with the above reference number, which you claim is owed by ourselves.
We would point out that under the Limitation Act 1980 Section 5: 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. We would also point out that the OFT say under their Debt Collection Guidance on statute barred debt that:
“It is unfair to pursue the debt if the debtor has heard nothing from the creditor during the relevant limitation period”.
The last payment of this debt was made over six years ago and no further acknowledgement or payment has been made since that time. Unless you can provide evidence of payment or written contact from us in the relevant period under Section 5 of the Limitation Act, we suggest that you are no longer able to take any court action against us to recover the alleged amount claimed.
The OFT Debt Collection Guidance states further that:
“Continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statute barred could amount to harassment contrary to section 40 (1) of the Administration of Justice Act 1970”.
We await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.
We look forward to your reply. Yours faithfully




Hope this helps




theassociate

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  • Posts: 4
Debt over 6 years
« Reply #16 on: Mar 11, 2011, 03:54:22 PM »
Has the debt been acknowledged within the 6 years.. by acknowledgement I mean have you made any payment to the debt within 6 years.. if they have just simply writing to you then this does NOT count as acknowledgement if you have not replied in writing to their corispondance.   What type of debt is it?  as not all debts can be statue bard after 6 years e.g TAX and Benefit Overpayments.


If its a credit debt and you have not made any payment in the past 6 years to the account (regardless if they have writing to you)  send them this letter.  Plus after 6 years of non payment of the account it can be lifted off your credit file you can apply to get it taken off.


Dear Sir/Madam
Account No:
Without prejudice
You have contacted us regarding the account with the above reference number, which you claim is owed by ourselves.
We would point out that under the Limitation Act 1980 Section 5: 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. We would also point out that the OFT say under their Debt Collection Guidance on statute barred debt that:
“It is unfair to pursue the debt if the debtor has heard nothing from the creditor during the relevant limitation period”.
The last payment of this debt was made over six years ago and no further acknowledgement or payment has been made since that time. Unless you can provide evidence of payment or written contact from us in the relevant period under Section 5 of the Limitation Act, we suggest that you are no longer able to take any court action against us to recover the alleged amount claimed.
The OFT Debt Collection Guidance states further that:
“Continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statute barred could amount to harassment contrary to section 40 (1) of the Administration of Justice Act 1970”.
We await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.
We look forward to your reply. Yours faithfully




Hope this helps

shocksoc335

  • Sr. Member
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  • Posts: 86
Re: advice needed on small debt
« Reply #17 on: Mar 12, 2011, 06:30:07 AM »
The onus is still on the lender to prove they have made contact and this is unlikely as they don't send correspondence recorded delivery. So yes the debt will become statute barred after 6 years. The debt should also be removed 6 years form when it was first entered as a missed payment or default or CCJ.

If it is on the file for longer than that you should request its removed. If the debt is subject to a CCJ then it can be recovered by ways of enforcement eg bailiffs etc however again the onus is on the lender who has to request leave from the court to continue to collect.

So in effect the debt more than likely will become statute barred after 6 years unless the creditor provides YOU with proof that they can legally collect it.

Finally 6 years have not passed yet so if you are offered an opportunity to settle in full and final you may want to take it but be careful if you request a F&F you are acknowledging the debt which means the time period will start again and the lender can collect for a further 6 years
Supporting 'Practical Debt Advice' by Elizabeth Mc