defaulted loans

[bananie]

I defaulted on a loan 5 1/2 years ago. A company has reecently been in touch with me to arrange for me to repay the loan. They have bought the debt off another company. I am not in a position to repay it at this time. I thought there was a Statutory time limit on reclaiming debt? Am I right?

[Ethel]

Six years since you last acknowledgefd the debt - for example made a payment, informed them you couldn't pay or notified them of your change of address.

After six years you will still owe the money but it can't be pursued in court.

[bananie]

Thanks Ethel.It's not 6 years but 5 1/2 half, they phoned me last night and i said i couldn't pay the debt and disputed that it was in my name only. i said i wasn't able to pay the debt. I thought there was a section in The Consumer Credit Act 1974 that specified time limits. but i have checked the legislation and I can't find it.

[kempie]

The 6 year time limit (England and Wales) is set in the Limitation Act 1980;

6 years for Northern Ireland - Limitation (Northern Ireland) Order 1989;

5 years for Scotland - Prescriptions and Limitations (Scotland) Act 1973.

[bananie]

ooooooooo thank you kempie, but I cannot find it on Westlaw

[Ethel]

That's what I said - the time limit is six years.

Is this for your law exam or a real situation?

http://www.payplan.com/debt-library/joint-and- several-liability-the-limitation-act-1980.php