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6 year clarification

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8 years 4 days ago #1105 by jamesus
6 year clarification was created by jamesus
Hi,

I've done a lot of searching but would just like to clarify.

Is there a difference between:

-the consumer legislation that "resets the clock" on the 6 year limitation each time a debt is acknowledged

-the business legislation, that as far as I can tell does not do the above, and the opportunity to pursue the debt vanishes after 6 years?

I can't find where the two are different, but every website seems quite clear that for commercial debts the situation is as above, which isn't the same as for personal debts.

And then, can you clarify whether it's 6 years from the date of invoice or 6 years from the date payment was due? And, if no due date was stated, is this taken as "30 days" or something else?

Thanks - really appreciate the help.

Thanks

James

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8 years 3 days ago #1110 by David J
Replied by David J on topic Re: 6 year clarification
Hello James
The six year rule (5 years in Scotland) comes from the Limitations Act 1980

www.legislation.gov.uk/ukpga/1980/58

Note 10 states:
Time limit for actions for sums recoverable by statute.
An action to recover any sum recoverable by virtue of any enactment shall not be brought after the expiration of six years from the date on which the cause of action accrued.
I would say that the 6 years commences from when the debt became overdue. if no payment date had been agreed, then the default the legislation uses is 30 days.

That's an interesting note about the consumer legislation.

Best regards

David

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8 years 3 days ago #1111 by jamesus
Replied by jamesus on topic Re: 6 year clarification
Hi David

Thanks for your reply, that is interesting.

I have since found conflicting information on this eg the following

www.addleshawgoddard.com/view.asp?content_id=4598&parent_id=4593 (section 5)

But then so many other sources, and your interpretation, don't say this.

I guess there isn't going to be a definitive answer? I'm not sure what your role/status is - do you have any specific experience that contradicts the above? I could really do with establishing this firmly.

Appreciate any help

James

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8 years 2 days ago #1112 by Safe_UK
Replied by Safe_UK on topic Re: 6 year clarification
David is correct in his interpretation of the legislation and it is worth noting consumer debt is governed by the same act.

Practically, you have six years from the date payment was due to launch legal proceedings if no payment is received.

If partial payment is received you have six years to issue proceedings for the balance, from the date the last payment was received (this payment has essentially reset the clock as it were).

You could try to launch legal action after the 6 years has elapsed, but you would need to have an extremely compelling reason to convince a judge that the action is fair and in the interests of justice.

In 30 years we have never seen a creditor take action after the statute has passed successfully.

Hope that helps :)

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8 years 1 day ago #1113 by jamesus
Replied by jamesus on topic Re: 6 year clarification
Thanks tor the reply and input.

Do you know of any case law that backs up your position?

I have had legal advice that says the opposite - any communication or acknowledgement resets the 6 years. I potentially have a lot of money at stake here so I'm trying to prove it as conclusively as I can.

Appreciate it,

James

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8 years 1 day ago #1114 by jamesus
Replied by jamesus on topic Re: 6 year clarification
By the way - worth clarifying that I'm not trying to avoid paying a true debt based on this!

Long story but there's a potential large claim against my business from almost bang on 6 years ago. Only part of an invoice was due, but we are now being pursued for the balance. The claimant is lying about details but we're finding it hard to prove. Potentially this is an easier get out.

The "debt" relates to 2006/07, and last payment was 1 Jan 08. Letter issued in March 08 which did not make it clear enough that the rest wasn't due (partly because events making it not due hadn't happened yet).

So, if it's based on invoice or last payment, we are home free, but if on that letter we are stuck. The amount is rather ruinous, and we are quite aggrieved at the lies we are having fed to us by the claimants solicitors, so I'm desperate to sort it out.

Legal advice in progress but it disagrees with both of you so intrigued as to any more info!

Thanks and really appreciate the help

James

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