A good question on limitation act

[TheScrapMan]

HEY THERE EVERY ONE.

 

THE PART OF THE ACT THAT IS IN RED SAYS ABOUT STATUTE BARRED CANNOT BE STATUTE BARRED IF A CREDITOR/DCA DEMANDS MONEY IN WRITING. SECTION 5 OF THE ACT IS SIMPLE CONTRACTS WHICH I ASSUME IS LOANS/CREDIT CARDS STORE CARDS, ETC.

 

DOES THIS MEAN THAT THE STATUTE BARRED TIMER RESETS EVERTIME I RECEIVE A LETTER?

 

MY DEBT WAS A CREDIT CARD.

 

 

6 Special time limit for actions in respect of certain loans.

 

 

(1)Subject to subsection (3) below, section 5 of this Act shall not bar the right of action on a contract of loan to which this section applies.

 

(2)This section applies to any contract of loan which—

 

(a)does not provide for repayment of the debt on or before a fixed or determinable date; and

 

(b)does not effectively (whether or not it purports to do so) make the obligation to repay the debt conditional on a demand for repayment made by or on behalf of the creditor or on any other matter;

 

except where in connection with taking the loan the debtor enters into any collateral obligation to pay the amount of the debt or any part of it (as, for example, by delivering a promissory note as security for the debt) on terms which would exclude the application of this section to the contract of loan if they applied directly to repayment of the debt.

 

(3)Where a demand in writing for repayment of the debt under a contract of loan to which this section applies is made by or on behalf of the creditor (or, where there are joint creditors, by or on behalf of any one of them) section 5 of this Act shall thereupon apply as if the cause of action to recover the debt had accrued on the date on which the demand was made.

 

(4)In this section “promissory note” has the same meaning as in the Bills of Exchange Act 1882.

[cerberusalert]

DOES THIS MEAN THAT THE STATUTE BARRED TIMER RESETS EVERTIME I RECEIVE A LETTER?

 

No, only if you make a written signed admission of the debt or make a payment within a six year period (five in Scotland).

[Guest]

also,

s6 is for 'certain loans' as it specifies 2 (a) and (b).

and, even if s6 was applicable, seems time would start to run from the first written demand only.

Edited July 10, 2012 by Ford