When is a debt Statute Barred in Scotland?

[pu_mpk_in]

Hello,

 

I'm looking for a bit of help or guidance please.

 

my brother got a letter today from cabot telling him that his cc debt has been passed on to Optima collections. He's at his wits end as he thought all this had 'gone away'.

He lost his job a few years ago (2008), through depression and marital break up, and asked the CC company to take reduced payments as he did not have much money coming in, they said no. Then he wrote and asked them to confirm they had a CCA and said the account was in dispute - they never replied and he assumed the lack of response meant they did not have one. He wrote to them again in Dec 2008 asking if they would take reduced payments as he did not want to 'shirk' the debt but still no answer.

They passed the debt on to cabot as they wrote to him last year but he simply ignored the letter. Anyhow he has received another today telling him it's been passed on to Optima and they will be in touch but he's worried sick that they will come to his door!

Can anyone tell me if there is anything he can do? is the debt statute barred now? he's made no payments since Aug 2008 and no contact since Dec 2008? Should he write and tell them the account is in dispute?

[maroondevo52]

Hi,

 

I very much doubt anyone will come to brothers door, if they did he could tell them where to go. In Scotland The Prescription and Limitation (Scotland) Act 1973 sets out the rules on how long a creditor has to take action against you for a debt.

 

If no payment or written acknowledgement has been made on the debt during a five year period, the debt is ‘extinguished, this means that it no longer exists and there is no debt for the creditor to pursue.

 

As you point out your brother has written to the Credit Card company trying to sort out some sort of payment plan, I would take this as the starting point for any Statute Barring timelines.

 

More than likely best to ignore them for now and see what they send next, by the end of the year I'd think you could then argue that the debts Statute Barred.

 

Let us know if your brother gets anymore letters.

 

Have you any idea how old the card is and if there was any PPI or charges.

[pu_mpk_in]

Thanks Maroondevo52 I'll let him see your comments and try and reassure him.

I've no idea how long he had the card but I'll try and find out although I suspect he won't want to do anything about PPI or charges or anything as I think he really did think it had 'gone away'.

He's decided not going to answer the door, or the phone too keep his stress levels down so all they could do is write to him

I'll keep you all posted!

[Crocdoc]

Optima Legal are merely mouthpieces for Cabot, (nothing to worry about) doorstep collectors are extremely rare these days. In the HIGHLY unlikely event that anyone does appear the second word is off.