Limitation for Debt

[Bird Legs]

Fifteen years ago I had no option but to default on various loans and credit card debts. Mostly the debts were pursued at that time and repayments agreed at a very modest sum per month, but Barclays only made a half-hearted attempt and and then I heard nothing for well over six years until they then wrote saying they wanted payment. I did not reply at all because at the time it was widely reported in the newspapers that Barclays had taken this action but the debts were not legally enforceable.

Now, some three years later, I have been informed by another company (Lowells Ltd/ RED Debt Collection) that they have taken over collection.

In view of what is said in answer below, should I simply ignore this demand as I am in no position to take on any more payments? - Or if I advise this firm of the Barclay situation, is that acknowledging the debt and making it active?

[innocenti]

If it has been more than 6 years since you last made a payment or made a writen statement admiting the debt then it is statute barred under the 6 year limitations act. You can write to the new DCA and tell them the that the debt is statute barred.

Once a debt is statute barred nothing will ever reverse this. You could take out a full page ad in The Daily Mirror admitting you owe the money but the DCA cannot legally collect on the debt and they cannot take you to court.

However, if Barclaycard have got a CCJ against you (and they have to apply for this prior to the 6 years is up) then the debt is enforceable and you will have to pay.

[Bird Legs]

Thank you for a clear concise reply

[themas]

I understand Lowells have recently bought a lot of debts from Barclays, & that they admit many of them are statute barred.

This does not mean that the debt ceases to exist; only that they cannot take Court action to get payment (unless, as already said, there was a CCJ before the 6 years were up).

You can tell them you can't or won't pay & that may be the end of the matter; or they could be difficult & go on chasing you. If they do it might be worth agreeing to pay a very small sum in full & final settlement of the debt. But if you do this, their agreement must be in writing before you make the payment, & it is safest if the payment is made to them by a third party - not direct by you.