can a company chase you for a debt after 10 years, and have added at least 100% interest to that debt? grateful for any advice...thank you.
2007-11-03 01:21:28 · 8 answers · asked by deejay 1 in Business & Finance ➔ Personal Finance
Yes, they can chase you, but here are the facts you need to know:
First, after 6 years, a debt drops off your credit file, so its no longer recorded there and having a negative effect on your credit record.
Second, if there is no contact between a debtor and a lender for a period of 6 years, the debt becomes "statuate barred". This means that although the debt still exists, you can't be taken to court by the lender to get it back. This effectively means if you refuse to pay, there is nothing you can do. If you tell the lender that you are aware the debt is statuate barrred, and you will not be paying, they are not allowed to keep hassling you to try and get you to pay.
No contact means that there is no dialogue between the debtor and the lender. The lender can send you a letter, but it doesn't count if you don't require. There should have been no contact on the telephone, and no letters from you that acknowledge the debt in any way.
If this applies to you, then inform the company that you are aware the debt is statuate barred, and you will not be paying. The burden of proof is on the lender to prove the debt is not statuate barred.
2007-11-03 11:15:10 · answer #1 · answered by Anonymous · 0⤊ 0⤋
In the UK, a debt becomes "Statute barred" after 6 years. This means that the creditor cannot use the Courts to enforce any credit agreement or other debt if no enforcement action, payments to the account or admission by the debtor of the debt has taken place in the preceeding 6 years.
As long as you have made no payments or had contact with the creditor for at least 6 years, the debt cannot be enforced.
The exception tot his is mortgage debt or debt remaining on a mortgage after a property has been reposseed. The period in this case is 12 years.
best of luck
2007-11-03 01:27:15 · answer #2 · answered by Anonymous · 0⤊ 0⤋
That depends upon the Statute of Limitations on the debt. In the US, the SOL is determined by the state where the debt was incurred AND the state where the debtor lives. It varies from as little as 3 years to over 20 years depending upon the state and the type of debt involved.
Don't confuse the SOL with how long a debt will remain on your credit record. A debt may be old enough to fall off of your credit record but still remain legally collectible. And if there is any activity on the old account such as making a payment or agreeing that the debt is legitimate it can be re-aged and pop right back on your credit record! Merely making an attempt to collect the debt or selling it to a collection agency will NOT put it back on your credit record, at least not legally though many will attempt to do so.
2007-11-03 01:42:10 · answer #3 · answered by Bostonian In MO 7 · 2⤊ 2⤋
Yes they can chase for it and yes they can add interest
If the debtor has not made any contact with them in 6 years and one day then they can not use the courts to enforce the debt.....but they can still chase for it
2007-11-03 02:28:05 · answer #4 · answered by stormydays 5 · 0⤊ 0⤋
hi there..i had the same trouble after 7 yrs...seems another company bought the debt of original company and i think they were just trying it on,,i got several letters from them...various phone calls..threats of baliffs etc etc...i basically have used the old ignore them and they might go away and so far they seem to have done so !!!
you could try this but i actually think they have stopped because , so im led to beleive , after 6 yrs , the debt is spent , hence why it,s taken 7 yrs for me to hear about it again !!!
2007-11-03 01:30:33 · answer #5 · answered by chrisbertrand2006 1 · 0⤊ 0⤋
Are you saying that you think a debt no longer applies if you avoid it for a long enough period of time. You are crazy to think that. Check out my profile for a low interest loan website that is similar to ebay.
2007-11-05 04:56:52 · answer #6 · answered by Anonymous · 0⤊ 0⤋
If I borrowed money from you under given terms, and then reneged on those terms, how long do you think I should be obliged to "still owe you the money"? Until I paid you back as agreed, right?
Why would it be any different for a company?
2007-11-03 02:26:14 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Yes, a debt is a debt if you owe someone then you are not absolved of this responsibility just by the passage of time. Otherwise we would all do that.
2007-11-03 01:26:45 · answer #8 · answered by Empeedee 3 · 0⤊ 1⤋