Could someone explain statute barred

simonb101

Hi all i am looking for someone to explain statute barred to me in plain English, with regard to a loan. I have read S. 56 and 65 of the Statute of Limitations Act 1957 but am still none the wiser. When does the clock on the six years start ticking and what are the exact circumstances on it being extended or reset. I have asked a solicitor who was a good friend about this before but he unfortunately is no longer with us. I do recall him mentioning a 21 day notice period for when the time starts but there is no paperwork to retrace that date.

Thank you all in advance

Cody Pomeray

Interesting question.

The clock starts ticking as soon as a cause of  action  accrues. So the real question is...

When does a cause of an action accrue in a debt case?

Well, a cause of action accrues as soon all the circumstances arise that enable you to commence an action. Typically, one party will have failed to pay a sum of money by a certain date. If I promise to repay you the princely sum of €500 by Thursday, and I don't pay you by Thursday, a cause of action has accrued, I have breached our contract.

It is important to remember that the courts do not care whether or not damage has been suffered at that time (lets say you only do up your accounts on the first week in December), the courts don't care - the clock will still have been ticking from the date a cause of action arose.

The courts are equally un-sympathetic to people who claim they exercised 'discretion' in not demanding a payment - you can't 'choose' your way out of a statute bar.

There are various other off-shoots to this discussion but these are some of the foundations.

simonb101

The bank in question has been demanding payment on and of for the past few years. Plus there was a renegotiation of the terms in 2009 from the original loan which was taken out in 2007 so how does that fair out. The scheduled date for the removal from the credit report is 2016 is that when it would become statute barred?

Cody Pomeray

This is not legal advice, but as a general observation, any renegotiation of a contract would start the clock again.

A credit report has no real bearing on the statute of limitations. The ICB's record of a loan will almost always expire before the loan is eventually statute barred, i.e. a lender can pursue a debt even when there is no ICB record.

simonb101

Cody Pomeray wrote: »

This is not legal advice, but as a general observation, any renegotiation of a contract would start the clock again.

And what about the bank in question actively seeking payment. How does that effect the statute. I was going to do and FOI request but am afraid of stirring up trouble for the person in question

Cody Pomeray

No, a letter demanding payment on behalf of a lender does not re-start the clock.

The debt has to be acknowledged by the debtor before the clock restarts.

Victor

simonb101 wrote: »

I was going to do and FOI request

I presume you mean the Data Protection Acts.