Liability for Debts and the Limitation Act

What the Limitation Act is:
The Limitation Act 1980 established the rules on the length of time a creditor has to take action (such as a lawsuit) against an individual for a debt the creditor is owed. Depending upon the type of debt the individual has, the time limits are different. In this article we want to explain when you can use the Limitation Act for unsecured credit debts.
Unsecured credit debt are debts that include bank loans, building society personal loans, catalogues, finance company loans, store cards, credit cards and other debt along these lines. In some situations people have a debt with a typical unsecured creditor and they have not heard from the creditor in quite some time. Perhaps they have even moved address or even assumed the debt had been written off.
If a letter arrives completely unexpectedly from that creditor or a debt collection agency who is telling you to make a payment you can sometimes argue that the creditor has run out of time or is ’statute barred’ from taking you to court for the debt.
This can sometimes work of if:
- The creditor has not yet obtained a judgement against you in court
and
- You or another person who owes money, if it is a debt taken out in joint names, have failed to make payments on the debt during the last six years
and
- The creditor has no written statement from you in the last six years, such as a letter, which states you owe on that debt

What the Limitation Act is:

The Limitation Act 1980 established the rules on the length of time a creditor has to take action (such as a lawsuit) against an individual for a debt the creditor is owed. Depending upon the type of debt the individual has, the time limits are different. In this article we want to explain when you can use the Limitation Act for unsecured credit debts.

Unsecured credit debt are debts that include bank loans, building society personal loans, catalogues, finance company loans, store cards, credit cards and other debt along these lines. In some situations people have a debt with a typical unsecured creditor and they have not heard from the creditor in quite some time. Perhaps they have even moved address or even assumed the debt had been written off.

If a letter arrives completely unexpectedly from that creditor or a debt collection agency who is telling you to make a payment you can sometimes argue that the creditor has run out of time or is ’statute barred’ from taking you to court for the debt.

This can sometimes work of if:

- The creditor has not yet obtained a judgement against you in court

and

- You or another person who owes money, if it is a debt taken out in joint names, have failed to make payments on the debt during the last six years

and

- The creditor has no written statement from you in the last six years, such as a letter, which states you owe on that debt

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