This may make it harder for you to get further credit. Even if the debt is statute-barred, it may still be on your credit reference file. In some circumstances, the creditor or a debt collection agency can still try to recover money from you. Statute-barred does not mean the debt no longer exists. If a debt is barred under statute, it means that by law (the Limitation Act), the lender has run out of time to use certain types of action to try and make you pay the debt. Limitation periods for debts are important because if the creditor has run out of time, you may not have to pay the debt back. This fact sheet outlines when you can use the Limitation Act. The Limitation Act 1980 sets out the rules on how long a creditor (who you owe money to) has to take certain action against you to recover a debt. The time limits do not apply to all types of recovery action. Also, the time limits are different depending on the type of debt that you have. What is the time limit for collecting debt? The sample letter mentioned in this fact sheet can be filled in on our website. Find out which time limits apply to which debts įind out when a time limit starts running on a debt ĭeal with creditors chasing you for old debts andĭeal with court action for debts past their limit.
0 Comments
Leave a Reply. |