Hello & Welcome to our community. Is this your first visit? Register
View RSS Feed

forumadmin

The Limitation Act 1980 and Statute Barred Debt

Rate this Entry
Quote Originally Posted by CCA Researcher View Post
Limitation periods are laid down in the Limitation Act 1980. The expiry of a limitation period provides a defendant with a complete defence to a claim. The primary purpose of the limitation period is to protect the defendant from having to face a claim which he never expected having to deal with. Furthermore, if a claim if brought long after the events in question, it's very likely that some evidence may have been lost and memories of any witnesses will have faded. Once the limitation period has expired, a debt becomes statute barred.

5 Time limit for actions founded on simple contract.

An action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.
Actions to recover money secured by a mortgage or charge or to recover proceeds of the sale of land

20 Time limit for actions to recover money secured by a mortgage or charge or to recover proceeds of the sale of land.

(1)No action shall be brought to recoveró

(a)any principal sum of money secured by a mortgage or other charge on property (whether real or personal); or

(b)proceeds of the sale of land;

after the expiration of twelve years from the date on which the right to receive the money accrued.
Tags: None Add / Edit Tags
Categories
Consumer credit

Comments

  1. charitynjw's Avatar
    The 'cause of action accrued' seems to be a moveable feast.

    Does Swansea City Council-v-Glass trump BMW-v-Hart?
  2. forumadmin's Avatar
    Distinguishing is the name of the game. In BMW v Hart, the contractual terms stated that BMW Finance could not make a claim until they have given notice of termination. Where the contract contains explicit terms like these, the cause of action does not accrue until the conditions are met. If the contract didn't contain such a clause, then it would be up to the court to decide when the CoA started to accrue. This kind of thing is more likely to occur with loans and HP agreements rather than credit cards. Also this agreement was not regulated by the CCA, so the the terms of the contract stood all by themselves, as if you and I entered into a credit agreement, we could have any terms on the contract, as long as we both agreed to them and neither of us had any arguments of duress or undue influence.

    In Swanswa v Glass, the council tried to be a bit too clever by saying that the CoA started to run from when the time they sent payment demands. What if they'd never sent any demands for years? That's precisely what the LA tries to prevent, ancient skeletons being dug up years later when six years should be more than enough for any creditor to attempt recover of the debt, comply with pre-action protocols and, if desired, issue a claim.
All times are GMT +1. The time now is 05:47 PM.
Powered by vBulletin® Version 4.2.2
Copyright © 2020 vBulletin Solutions, Inc. All rights reserved.
Forum Modifications By Marco Mamdouh
User Alert System provided by Advanced User Tagging (Pro) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd.
Thread Forms provided by DragonByte vBForms v1.1.1 (Lite) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd.
Pre-Defined Posts provided by Post Templates v1.6.1 (Free) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd.
NavTabs provided by vBNavTabs (Pro) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd.
(c) 2016 Legal Loopholes. All Rights Reserved.