Statute Barred Debt Chasing

[Bob Morgan]

So if I lend you £5000 and then when the time comes to repay you blow a raspberry or if you fail to deliver what I have bought then according to your logic it's my hard luck for trusting you in the first place.

My debt is statute barred but I can surely still plead for you to repay me without being called a disgusting person for doing so.

If a debtor can't pay his debts who has to suffer?

There is little a creditor can do other than plead for his money if he hasn't taken legal action within six years which provides a lot of protection for a debtor. All the debtor needs to say is sorry I don't owe the debt have a nice day but some debtors will be tricked into making a token payment or accepting the debt in which case the clock resets but that's because the debtor is not aware of the protection which the law has already provided.

There's always Big Ron and Razors in Fulham!

 

[kulture]

So if I lend you £5000 and then when the time comes to repay you blow a raspberry or if you fail to deliver what I have bought then according to your logic it's my hard luck for trusting you in the first place.

My debt is statute barred but I can surely still plead for you to repay me without being called a disgusting person for doing so.

If a debtor can't pay his debts who has to suffer?

There is little a creditor can do other than plead for his money if he hasn't taken legal action within six years which provides a lot of protection for a debtor. All the debtor needs to say is sorry I don't owe the debt have a nice day but some debtors will be tricked into making a token payment or accepting the debt in which case the clock resets but that's because the debtor is not aware of the protection which the law has already provided.

You don't get it do you. The debt is statute barred IF YOU DON'T BOTHER TO TAKE COURT ACTION FOR SIX YEARS. So if you chase a debt when it becomes due, you have six years to take them to court. If you fail to do that then I have no sympathy.

In your senario, when the time comes to repay is the START of the six year clock.

 

[nelioneil]

So if I lend you £5000 and then when the time comes to repay you blow a raspberry or if you fail to deliver what I have bought then according to your logic it's my hard luck for trusting you in the first place.

My debt is statute barred but I can surely still plead for you to repay me without being called a disgusting person for doing so.

If a debtor can't pay his debts who has to suffer?

There is little a creditor can do other than plead for his money if he hasn't taken legal action within six years which provides a lot of protection for a debtor. All the debtor needs to say is sorry I don't owe the debt have a nice day but some debtors will be tricked into making a token payment or accepting the debt in which case the clock resets but that's because the debtor is not aware of the protection which the law has already provided.

No the law is saying tough luck to the creditor who had 6 years to take formal action but chose not to. And if you try and continually to plead after a debt is statute barred it will been seen as harrasement.

 

[Gyumri]

In your senario, when the time comes to repay is the START of the six year clock.

No please read again. The period only re-starts if the debtor agrees to accept that the debt is owed. The debtor might even make some token payments or agree an installment plan and in that case the clock restarts.
The debtor is quite at liberty instead to say sorry but the debt is statute barred have a nice day ?assuming that there is no outstanding judgment or the creditor hasn't begun a claim within the six year period.

if you try and continually to plead after a debt is statute barred it will been seen as harrasement.

It can amount to harassment if more than two attempts are made to enforce the debt in which case the option is to inform the creditor of that fact and that he will be reported to the police if he doesn't call it a day.

 

[kulture]

In your scenario you said “So if I lend you £5,000 and when the time comes to repay you blow a raspberry…” , so having read it again, it remains clear that the debtor does not pay WHEN IT COMES DUE. So you have six years from then to take them to court.

 

[Gyumri]

If you read the thread the question developed as to whether it was "disgusting" to purse a debt after six years.

If somebody lends you £5,000 they're entitled to ask for it back whether it's after 6 years or 60. You will always owe it, even though in law the creditor cannot start a claim after 6 years.

So I think we're singing from the same hymn book.

 

[kulture]

Of course I have read the thread. Which is why I disagree with you. I agree with the principle of statute barred debt. I think it is wrong for companies to buy this old debt and keep chasing it and trying to trick people into acknowledging it.

 

[Porky]

@Gyumri
With respect you are totally missing the point of this thread:-

If somebody lends you £5,000 they're entitled to ask for it back whether it's after 6 years or 60. You will always owe it, even though in law the creditor cannot start a claim after 6 years.

Let me clarify further using your example:-

I lend you £5k and on the day you agreed to pay me the money back your circumstances have changed, you cant or wont pay the money back:-
I can go after you, if the loan is secured i can take your property. I can go for an attachment to earnings until its repaid, If its unsecured i can still go after you, pursue you with a County Court claim, maybe even issue bankruptcy petition these methods of recovery are open to me but i have six years from the day you defaulted to do it.

After year five and month 11, right up to the deadline i can always say to you, look pay me the money you owe me or i will issue bankruptcy proceedings, if you believe you can pay me back in another five years sign a document to have the time limitation stayed and i will accept that. So now you have a total of 11 years to pay me.

BUT in the position i outlined in my OP, the credit card division trust card DID NOT enforce collection of the debt. It might actually be a reward card or something now and the division closed down but for whatever reason it was not enforced during that entire six year window following the default. The debt became Statute Barred.

Now then and this is the point of the thread you are missing:-

So in your example, YES, your debt was never repaid and is in effect still a debt. However, i have not issued any proceedings, taken any action to recover against you and i have now written off your debt. I am now out of pocket by your debt. Further, i sold your debt on for 10p in the pound to firm A that chases old debts. So i recovered some cash by selling it but that's the end of the line for me. You are no longer my problem.

Now firm A after a few more years have no joy collecting some debts from my list and sell my debt contacts on again that they had no joy with to Firm B for 2p in the pound. Firm B does the same and now a few further years later there is a further reduced list of debts sold to Firm C for 1p in the pound. This firm use heavy intimidating tactics to try and rinse cash out of the remaining names left on the list.

This is the unsavory and what i consider to be the unethical part of this situation. IF firm C collect any money from you through extortion or similar tactics, i don't see any of that money myself as i sold it out three deals back. BUT firm C do, they profit because they brought a list of named debtors for 1p in the pound and are in the business of profiteering by doing this.

Personally, i consider these firms the absolute scourge of society, especially in the current cost of living crisis but you are obviously welcome to a different view point but i hope i at least got my point of view over to you why i disagree with you.

Take care now

Pork's

 

[JEREMY HAWKE]

The law allows the creditor ample time to take the appropriate action

These types of debt are not you and me owing each other money it is the banks and their irresponsible lending

These banks are just lazy when it comes to chasing debts and by all accounts end up selling the debt on almost at the point when it is too late.
The banks are a free for all all the profits go to foreign investors now just like the rest of our big corporations they are greedy and clearly obviously lending a lot of money to a lot of people with no means to pay it back.

 

[Gyumri]

However, i have not issued any proceedings, taken any action to recover against you and i have now written off your debt.

You haven't "written it off" - there's the mistake you're making.

This firm use heavy intimidating tactics to try and rinse cash out of the remaining names left on the list.

That's different. There are laws to protect a person in that position. Even the consumer credit Act allows a debtor to apply to the court for the debt to be written off due to unfairness in collecting it.

This is the unsavory and what i consider to be the unethical part of this situation.

I agree when it comes to banks but the law makes no distinction between a friend who lends £5000 to another "friend" and then can't get his money back and a bank.

These banks are just lazy when it comes to chasing debts

Agreed - so perhaps the law should change to the effect that if they don't take legal action within three years then the debt is written off.

You will need to write a letter to your local MP to change the law if you know who he or she is. Use a 2nd class stamp and don't expect an immediate response if you get one at all.

 

[Porky]

@Gyumri
Oh but in my specific case the bank has written the debt off. They originally sold the debt to Firm A for so much in the pound remember?, The bank today has no financial interest in that specific credit card debt. Further, even if the debt was recovered many years down the road by any following debt chasing organisation, B C D etc... NONE of the money would go back to the bank. They would NOT benefit nor are they interested.

I don’t think any change is required to the “Statue Barred” rules, we have possibly one of the best legal frameworks in the world IMO.

I would probably outlaw the practice of debts being sold on more than once, multiple times and certainly after say 12 years but that’s open for debate and an entirely different argument.

As for lending cash to friends or relations, I have personally done that and just take the view at day one it’s most likely going to be a gift, if I do get it back it’s a bonus.

Difference of opinion is good for debate but anyone reading this thread now or in the future will at least know how to deal with this kind of matter if on the receiving end of it.

Ref: early post #6 from @Newchodge and @Chris Callaghan plus @Michael Loveridge #16 and my précis of the action followed in practice #35

Too many others to thank and reference talking part in this thread. Appreciated.

 

[JEREMY HAWKE]

You will need to write a letter to your local MP to change the law if you know who he or she is. Use a 2nd class stamp and don't expect an immediate response if you get one at all.

Yeh I could not really give a f££k about it .It's not that deep!
Non of my concern

I'm just printing my observations
I'm not writing to Richard he is too busy opening farmers markets and moaning about Boris

 

[Gyumri]

They originally sold the debt to Firm A for so much in the pound remember?, The bank today has no financial interest in that specific credit card debt.

There are two ways to "assign" a debt: you can appoint a collection agent to collect it for you in which case the creditor has not assigned his legal or beneficial interest in the debt or else he has assigned it "sold it" often for a fee to an assignee.

The assignee is in no better position than the assignor and must accept the assignment subject to such equities as the debtor has against the assignor.

In this case the equity is that the debt is statute barred. Hope this assists.

 

[Lisa Thomas]

This is exactly how I've understood it for years Lisa, but apparently it's all about the debtor acknowledging the debt.

Thanks Chris.