Debt

challnas

I know this might not be a good place for debt advice but I need help with this. I defaulted with a credit card after I started to suffer with disability and had to lessen my working hours which impacted my income. Now I've been told that the account has been handed over to a solicitor to issue a letter to claim. I've been in contact with the solicitors on monthly basis and spoken to step change. My question is if the card was defaulted in December 2018 will it be statutory barred after 6 years?

Jimm_Scope

I found a site with some information about statute barred debt here Statute Barred Debt & Debt Recovery. StepChange.

It isn't measured from the date you took the debt, it's measured from when they last contacted you informing you still owe the debt. The debt can also remain on your credit file, it just cannot be enforced through the courts. 

Since we're talking about debt recovery I'll link this Citizen's Advice page about disability and debt problems incase it proves useful Disability discrimination and debt problems - Citizens Advice.

I can see you posted about PIP in the past, how did that go? Just checking you're getting what you're entitled to

2oldcodgers

Normally yes - 6 years plus the current year.
BUT if there has been any action on your part or that of the creditor then the 6 + 1 starts from the date of the last communication.
Say it was 5 years without any action and in year 6 you telephoned/wrote to the creditor or they did to you the clock is reset.

MW123

@challnas

The six-year limitation period for most debts in the UK, as outlined in the Limitation Act 1980, generally starts from the date of the last payment or acknowledgment of the debt. If you defaulted on your credit card in December 2018 and have not made any payments or acknowledged the debt in writing since then, the six-year period may indeed start from the date of the default.

 

Jimm_Scope

They do say they've been in contact with the solicitor who now owns the debt. If the solicitor has ever stated they still owe the debt that would reset the clock.

MW123

@Jimm_Scope

We are talking about my profession and I can assure you, solicitors typically do not "buy" debts in the same way that debt buyers or debt collection agencies might. Solicitors are legal professionals who provide legal advice and services, and they are generally not in the business of purchasing debts. 

However, there are situations where a solicitor may be involved in the collection of a debt on behalf of a creditor. In such cases, the solicitor is acting as an agent for the creditor, and they may send letters or take legal action to recover the debt. The creditor may hire a solicitor to handle the legal aspects of the debt collection process. 

It's important to note that the involvement of a solicitor in debt collection doesn't change the debtor's rights or the rules governing debt collection practices. Debt collection in the UK is regulated by laws such as the Consumer Credit Act and the Financial Conduct Authority (FCA) guidelines, which provide protections for consumers.

Jimm_Scope

MW123 said:

@Jimm_Scope

We are talking about my profession and I can assure you, solicitors typically do not "buy" debts in the same way that debt buyers or debt collection agencies might. Solicitors are legal professionals who provide legal advice and services, and they are generally not in the business of purchasing debts. 

However, there are situations where a solicitor may be involved in the collection of a debt on behalf of a creditor. In such cases, the solicitor is acting as an agent for the creditor, and they may send letters or take legal action to recover the debt. The creditor may hire a solicitor to handle the legal aspects of the debt collection process. 

It's important to note that the involvement of a solicitor in debt collection doesn't change the debtor's rights or the rules governing debt collection practices. Debt collection in the UK is regulated by laws such as the Consumer Credit Act and the Financial Conduct Authority (FCA) guidelines, which provide protections for consumers.

Oop, I've put my foot in it haven't I? I think I got confused by "they've handed to account over to the solicitor". For some reason my brain processed that has ownership, not simply handing the case of dealing with it legally.

I assume then the creditor has finally sent the case to their solicitor.

MW123

@Jimm_Scope  No you haven’t put your foot in it, it's a common misconception. The creditor has involved a solicitor to handle the case from a legal perspective. It's more about dealing with the matter through legal channels rather than transferring ownership. 

Generally, the intention behind a solicitor's letter is not to frighten the debtor but to convey a serious intent to pursue legal remedies if an amicable resolution cannot be reached. However, taking legal action is less common than people think and is usually considered a last resort. 

@challnas I strongly encourage you to reach out to National Debtline for expert guidance tailored to your unique circumstances. Their team of professionals is committed to offering free and impartial advice, ensuring that you receive the support needed to navigate your financial challenges effectively. Remember, you're not alone in this journey, and seeking assistance can make a significant difference. I sincerely wish you the best of luck and a brighter financial future ahead.

2oldcodgers

MW123 said:

Generally, the intention behind a solicitor's letter is not to frighten the debtor but to convey a serious intent to pursue legal remedies if an amicable resolution cannot be reached. However, taking legal action is less common than people think and is usually considered a last resort. 

Maybe but over the years I have been told that the solicitors letter is to put pressure on to pay up.

MW123

@2oldcodgers
While it's understandable that individuals might perceive solicitors letters as a means to pressure individuals into settling or making payments,  I cannot offer any judgement on the practices of other professionals.