Is it true that a creditor cannot collect a loan from you if.......?

Question

no contact has been made by them to you for 6 years? I heard it was true.

I have now found out that refer to the Limitation Act 1980

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

Answer 1

What you referring to is the statute of limitations. Once this time expires creditors can still try and collect but if they take you to court all you have to do is show that the S.O.L. has expired and the case will be dismissed.

I posted a link so you can look up your State.


http://www.bcsalliance.com/index.html

Answer 2

The Limitationions Act Of 1980 applies the the United Kingdom. The Limitations Act 1980 gives creditors a maximum amount of time to start legal proceedings after the last payment or written acknowledgement (note or letter) from the debtor. For most debts, this is six years, or 12 years for mortgages. If you have not paid anything towards a debt or 'acknowledged the debt' in writing (for example, by writing to the creditor about the debt) for more than six years, you should get specialist advice before you speak to the creditor about an arrangement to pay what you owe.


The Statute of Limitations applies to the U.S. which is a statute in a common law legal system that sets forth the maximum period of time, after certain events, that legal proceedings based on those events may be initiated.


I am not sure what country you are in, so I just wanted you to know that. I have listed both sources below for you.

Answer 3

Depending on the state, but usually around 7 years it will be "resolved".
If the creditor made attempts to collect and were unsuccessful, they will either turn it over to a collection agency which will harass you to no end, or it will eventually go away.
If they have filed suit against you with the court clerk's office, the matter will be dealt with in that manner, and if you never appeared for the suit, it will remain on your records for a longer period of time due to a judgement having been made against you.


Nad

Answer 4

Yes. There's this thing called "Statue of Limitation", which varies by state.(some state only has 5 years) If they call you, make sure not to make a promise that you sending a payment, because the years will start again! If nobody contacted with you for six years, You have a good chance for get away with it!!!!

Answer 5

Yes its six years since you last admitted to the debt or made a payment - UNLESS the debt was secured - which case it is 12 years or a County Court Judgement has been made in which case it enforceable forever.

Answer 6

I heard Seven years as the credit report cycles clear supposedly every seven years

Answer 7

I'm not sure if it is 6 or 7 years citizen's advice would be able to help

Answer 8

They just have 7 years to report you to the credit agencies .

>

Answer 9

ive also heard that but am not sure, hopefully someone will let you know.

mechelle.