James
I'm filling in my forms to obtain an up-to-date credit report but it is only going back six years and the address I had problems with was more than eight years. I have had no contact from creditors at all until very recently. Lloyds TSB are after nearly £2,500 – all bank charges – but I did go into branch eight years ago spoke to manager and asked her to cancel all direct debits on the account. Is there a time limit that creditors can chase you? Around that time I had my house and car repossessed after my business went belly up and I ended up in hospital. I am worried now that all sorts could come out of the woodwork and chase me for previous debts!! Please help. Many thanks,
Steve, Aberdeen
Steve
When you apply for your credit report, we only ask for addresses covering the past six years because this is how long information stays on your credit report for. As a result, a default or court judgment incurred eight years ago would no longer be registered for credit reference purposes. Six years is also the period of time that a debt becomes ‘statute barred’ under the Limitations Act. This means that if you haven’t had any contact with a lender for six years or more, any debt usually becomes legally unenforceable. So you’re right, there is a time limit. The Office of Fair Trading issues guidelines on debt collection practices which specifically covers this issue. If you feel any of your lenders are not keeping to these guidelines you should raise this with them and then, if necessary, seek advice from Consumer Direct on 08454 04 05 06 or by visiting the Consumer Direct website.
James