Paying old Credit Card DebtPayment of old credit card debts
If so, it could be that confiscation is no longer permitted. On the other hand, the old debt rule is quite complex.
Limitation ActThe Limitation Act of 1980 lays down the regulations governing how long it takes to recover claims from lenders. When the guilt is old enough, it is "barred" - and that means that the believer has run out of credit to use the judgments to confiscate it. Yet, although you are no longer required henceforth to repay the debt off, that does not mean that you are free of the consequences of the debt.
"Limitation does not mean that the debt no longer exist," said Paul Crayston, spokesman for the National Debtline in a declaration. "If the debt is statute-barred, it can still be in your credit report," says Crayston. "Might make it more difficult for you to get more credit. "When does a debt become too old to be collected?
Exactly when a debt is subject to the limitation period will depend on the nature of the debt it is. According to the law, such debt is subject to limitation after six years of non-activity by you and the lender. Once the lender is able to initiate legal proceedings against you - generally after two failed repayments, Crayston says.
Unless the debtor is able to take proceedings against you within six years and you have not made any payment on the debt during this period, the debt will become statute-barred and you will be immunised against prosecution. When doing neighborFirst, make sure that the debt is really statute-barred. Enquire at the credit bureaus to ensure that you do not have any judgements from the district courts against you regarding this debt.
Make sure that you have not made any payment to the bank over the last six years and that no co-owner in the bank has done so. No matter what you do, don't make any payment, and don't mail any mail that admits to the collectors that you owed the debt, says Crayston.
Maybe you still have to tell the collectors, but Crayston says. You declare, without acknowledging the guilt, that you believe it is covered by the Limitation Law. "As soon as you tell the debtor or the debt collecting agent that you are denying the debt because you think it is statute-barred, it is up to you to show them otherwise," says Crayston.
Please also ask for your written statement confirming that the debt collecting agency will no longer contact you about the claim. When a debt is statute-barred and you have made a settlement on it before you realize that it was, the debt is probably not enforceable. However, this can be a complex area of law, and so it is best to obtain debt counseling from professionals, such as National Debtline.
When you keep being prosecuted by debt collectors after you have asked them to stop paying back debt statute-barred, keep in mind that they are entitled to do this -- they just can't compel you to foot the bill via court cases. Nevertheless, the Office of Fair Trading (OFT) is frowning on such practice in accordance with its debt recovery policy.
OFT does not tolerate individual grievances, but you can make a grievance to the Financial Ombudsman after first trying to clarify the matter with the collection agency.