can a debt collection agency make me pay a debt more than 6years old?

Answer 1

This is a bit long winded but its the facts. England and Wales only different rules for Scotland.

The Limitation Act 1980
The Limitations Act 1980 outlines the time limit within which a creditor can chase a debtor for outstanding debts. The Limitations Act 1980 only applies when no contact has been made between the creditor and debtor within the given time limit and only applies to residents of England and Wales.

Creditors are given a fixed period of time to chase their debtors, which is outlined in the Limitations Act 1980. The time scale mainly depends on the type of debt and can be extended at the courts discretion. The time limit begins when you last admitted owing the money or made a payment.

Should the creditor fail to maintain contact with the debtor, for a period of 6 years or more, it is possible to claim that the outstanding debt is "Statute Barred" under the conditions of the Limitations Act 1980.

The Limitations Act 1980 also has additional effects, depending on the type of debt in question:

Unsecured debt
You may have assumed that your creditor has "written-off" a debt if you have not heard from them for a long period. In many cases, it could be down to your failure to inform them of a change of address, but the debt will still exist and creditors are entitled to chase the debt indefinitely (even after the debt has become Statute Barred), however they can only use the legal system to recover the monies for up to 6 years after the last payment was made to the account.

Remember, creditors are still able to pursue an unsecured debt if:

They have previously obtained a judgement against you (a CCJ);
You have made a payment to the account within the last 6 years (this includes anyone else named on the credit agreement)
You have established any contact with the creditor (this can be a phone call or letter to request a balance or change your details), except to deny that the debt exists.
If a creditor continues to contact you after accepting that a debt is Statute Barred and you have stated that you no longer intend to pay the debt, you may be able to claim harassment contrary to section 40 (1) of the Administration of Justice Act 1970.

County Court Judgement
If the creditor has previously taken you to court and you have received a County Court Judgement, you will be unable to use the Limitations Act 1980 to dispute the debt. If the judgement is over 6 years old the creditor may need the permission of the Court to enforce the debt.

Council Tax
If the Council tax was due more than 6 years ago the council can go to Court and ask for a Liability Order. The liability order allows the council to deduct the council tax debt from your wages or benefits. The council will be granted the liability order unless you defend the debt.

Mortgage shortfalls
Your mortgage lender may begin chasing you for a mortgage shortfall, which was the result of repossession. The time limit is slightly different for the mortgage lenders as they have 12 years before the debt becomes Statue Barred.

Income Tax and VAT
There is no time limit for these debts to be chased. You can always be pursued for debts owing to HM Revenue and Customs.

Benefit Overpayments
The Department of Work & Pensions (DWP) can chase debts after 6 years without going to court. They reclaim the overpayments by deducting them from current benefits.

What to do if a creditor contacts you after six years
Don't admit to owing the money

Once you agree to owing the outstanding amount then you are required to pay the debt back. If a payment is made, even after a 6-year gap, the Limitations Act 1980 won't be enforceable and the debt will have to be paid back.

If a creditor, who you haven't had any communication with for 6 years contacts you about the debt you should write to them quoting the Limitations Act 1980.

Answer 2

First of all, no one can make you pay any debt...you choose to. If you don't want to, you don't have to. As mentioned, when you take out a debt you owe it until you pay it. However, each state has a statute of limitations which means you can't be held liable for debts over a certain amount of time, like 6 years. That doesn't mean someone can't sue you for old debts; that just means you have a defense. If you were sued, it wouldn't go anywhere because most courts won't hear cases with debts over 6 years old...they are too busy with debts 1-2 years old! Who has time to hear all of those cases? Do you think they will spend time on a case for a company that took 6 years to come after you? No!I would send them a "cease and desist" letter and tell them to leave you alone.

Answer 3

Itwould be helpful if people asking legal questions would state where they live as the law is different depending where you live.

Assuming it is England then the Limitations Act 1980 could preclude a creditor from pursuing the debt but it depends on whether you have been in contact with creditor and have made any payments toward the debt during the previous 6 years. Have a look at this site to get more information:

http://www.payplan.com/debt-library/joint-and-several-liability-the-limitation-act-1980.php

Answer 4

If I borrowed $100 from you and moved house, and it took you 6 years to find me, would I still owe you the $100?

Businesses hand bad debt over to collection agencies in exchange for fees. The agency have paid whoever you owed the money to a percentage of what you owed because they have given up. The agency are not so likely to give up.

You might be wise to find a way to pay them, not to cast aspersions, but collection agencies often use "unconventional" tactics to get their money back!

Answer 5

Sure they can. Whether it can still be reported to the credit bureaus is another matter. Usually, the ding to your credit falls off after 7 years. But the collections agency can make every effort to try and collect as long as they want really. The only incentive for people to pay is if it is on their credit report. But after 7 yrs. collections will usually stop because the collection agency really has no ammunition at that point to threaten you to pay by telling you they will report it to the credit bureau.

Answer 6

if you got ccj or if it has been to court then no best thing to do is seek advise from citizens rights. If the debt is from any goverment department including council tax they can pursue you for it.

Answer 7

If you live in any state in the US except Minnesota - Yes.
ps - they should'nt have to 'make' you pay your bill. grab your check book and call them. at the end of the day you'll know you did the honest thing.

Answer 8

most people say no because of the statue of limitations. however an attorney told me you will always be held liable for any debt no matter how many years you owe it.

Answer 9

It depends on where you live and where your contract was signed. There are different rules for each state.

This link should help you out.

Answer 10

Yes they can & if you refuse they can county court you which will add to what you already owe.I would pay them.