Credit file default

[fletch70]

I think the issue may be the definition of when the debt arose. Maybe some legal advice before that course of action is taken.

[fletch70]

CCJ s if not been paid over a period of 6 years would be difficult for a company to enforce without good reason to a court, is probably what is meant.

 

That maybe what is meant but it is not what was said and in particular the poster is talking about paying the debt until the default comes off then stopping.

[BRIGADIER2JCS]

What has been said is if the creditor has not taken enforcement action on an account for 6 years or more since the debt arose court action should not be taken, so if the op continues to pay til the deafult is removed then stops no court action will be taken.

 

Research it.

[fletch70]

Out of Date Debt

If you have a debt that's 6 years old or more, and it's

one you haven't had any contact regarding, or

acknowledged it in any way, then you may not have to

pay it.

Debts like these are covered by a law called the

Limitations Act 1980 and called "Statute Barred". In

plain English, this means you might not have to pay it.

This is a short guide which explains your rights in this

situation and also provides a sample letter which you

can use to respond to anyone chasing you for debts in

this circumstance.

Please note that when we refer to creditor, we mean

the company or person/s you have borrowed money/

credit from, and when referring to debtor, we mean

you.

Limitation Act and Unsecured Debts - Free Advice and

Help

The Limitation Act 1980 states how long a creditor can

chase you for an unpaid debt. This article explains how

the limitation act applies to unsecured lending in

England and Wales.

The Limitation Act 1980 applies only when no

acknowledgement of a debt has been made between

the creditor and debtor (you) within a certain time

limit, and applies to residents of England and Wales

only.

The time limit depends on the type of debt it is. For

unsecured loans it's 6 years. If the debtor

acknowledges the debt in writing or pays an instalment

within the original limitation period, then the time

limit begins again from the date of acknowledgement

or the date of payment.

If the creditor does not contact you (the debtor) for 6

years or more, you (the debtor) may be able to claim

that the outstanding debt is Statute Barred under the

conditions of the Limitations Act. Statute Barred means

the creditor cannot use the legal system to enforce

payment.

When can a creditor pursue an unsecured debt?

You (a debtor) may think (or hope) a creditor has

written-off your debt if you haven't heard from them

for a long time. However, the debt still exists and

creditors are entitled to chase payment.

Creditors can pursue an unsecured debt if:

Payment to the account or County Court Judgement

(CCJ) has been made within the past 6 years. This

includes payments from any people named on the

credit agreement, not just you.

Acknowledgement of the debt has been made in

writing and signed by the person making it.^

 

Just one of many articles on Google that say the same. Your assessment is wrong.

[BRIGADIER2JCS]

Not talking about SB which has nothing to do with this what so ever.

[fletch70]

I know it doesn't but you have quoted the limitations act.

[BRIGADIER2JCS]

READ LIMITATIONS ACT 1980 Limitaion -actions founded on TORT. and (5) Time Limits for actions founded on simple contracts.

 

As previously clearly stated ''An action founded onsimple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.

[fletch70]

Have a read of BMW financial services (GB) v Hart.

 

Your words are at best misguided and at worst reckless nonsense and i believe that you and this forum could be liable.

[BRIGADIER2JCS]

I do not have time for petty queries that help no one.

 

The information in post 33# is a direct qoute from the limitations act 1980 I am and so are others here aware that in exceptional circumstances a judge may allow a claim to be restarted of a claim to be initiated after 6 years.

 

For this case it does not apply.

[Peterbard]

READ LIMITATIONS ACT 1980 Limitaion -actions founded on TORT. and (5) Time Limits for actions founded on simple contracts.

 

As previously clearly stated ''An action founded onsimple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.

 

So just for clarity, when is "the cause of action", is it when the DN record is put on the file ?(if no payment or acknowledgement is made after)

[fletch70]

Well this is far from petty and you missed out relevant parts.

 

The right shall be treated as having accrued on an not before the date of acknowledgement or payment.

 

As the poster is currently paying and the default was placed 4 1/2 years ago it clearly does apply.

 

It is about time you admitted that you made a mistake.

 

As far as i can see you are referring to a situation when a ccj has already been awarded.

[BRIGADIER2JCS]

The cause of action is the date a payment was due and not paid an further payment was made.

 

The op is proposing waiting 18 months and then stopping payments.

[fletch70]

Exactly so if the poster is making the payments as agreed the cause of action would be 6 years from the date of first missed payment. So if he was paying on the first of the month it would be 1/3/2019 before the six years were up.

[Peterbard]

The cause of action is the date a payment was due and not paid an further payment was made.

 

Hmm

 

http://www.squiresanders.com/files/Publication/3b54fa41-fa7d-4613-a79e-f8f907f1a1bd/Presentation/PublicationAttachment/fae9b1b3-599c-4d31-867f-fd9ff1367f9c/Timing-is-Everything-Court-of-Appeal-Hands-Down-Decision-on-when-Claims-Under-Hire-Purchase-Agreements-are-T.pdf

 

Seems to indicate that it is the termination of the agreement

[Peterbard]

It seems to indicate that the COA is when the creditor accepts the repudiation of contract and the DN period ends(when the agreement is terminated) this can be some time after the first payment is missed of course.

[Old Cogger]

A CCJ would be most unlikely as action through the courts should not be taken after 6 years , the 6 year limit is clearly reached once the defaulted account has been removed from credit file, the courts very, very rarely agree to actions being started or restarted after 6 years from the cause of action.

[Peterbard]

A CCJ would be most unlikely as action through the courts should not be taken after 6 years , the 6 year limit is clearly reached once the defaulted account has been removed from credit file, the courts very, very rarely agree to actions being started or restarted after 6 years from the cause of action.

 

I don't think you can assume that the six year period commenced at the point where the dn was registered. The agreement may have been terminated after this date, so the SOL would commence to run after the CRA date.

 

So the record could have fallen off before the SOL period expired

[Jimmy99]

The cause of action is the date a payment was due and not paid an further payment was made.

 

The op is proposing waiting 18 months and then stopping payments.

#

If I understand all this, the poster is going to wait 18 months until his default falls off his CRA and stop payments. So it would be 6 years from then that he could no longer be taken to court because that would be when he first broke the arrangement?

 

I think I need a lawyer

 

I have to assume that Brigadier2jcs is not a lawyer really!!

[Old Cogger]

upto 6 months before DN in some cases would be the last acknowledgment I payment etc, so in most cases the Limitation barred would start before a DN at least 3 months as the system kicks in after 3 missed payment in most cases.

[BRIGADIER2JCS]

The original CoA is the default date IMO.

[dx100uk]

Hey guys,

 

I had a default on my credit file about 6 months ago. I called them and cleared the debt. They have marked my credit file as satisfied which is fine but now every month for the last five months they have been updating my credit file each month as default but with a £0 balance.

 

Are they able to do this and why are they doing this?

 

One other thing! When are defaults removed from the CRA? Is it the default date or the satisfied date?

 

anyway back to the op question...

 

what made you think paying the debt would make any diif?

hope this wasn't a DCA you paid?

 

dx

[Peterbard]

The original CoA is the default date IMO.

 

Appeal court judge here seems to disagree BMW Financial Services (GB) Limited v Hart (2012)

[IdaInFife]

The cause of action would be if the op stops making payments not the default.

[BRIGADIER2JCS]

Thanks Ida, not going to argue, the point here that differs is that ''payments'' had already ceased hence the original default.

[Peterbard]

Read the judgment