A debt can be statute banned (too old to pursue) considering that the Limitations of Actions Act 1958 (Vic) puts a restriction in the time a creditor needs to simply simply take appropriate action to recover a financial obligation.

There are numerous of reasons behind having a period limitation for a creditor using action that is legal including:

If your creditor begins court action against you, as well as the financial obligation is statute banned, you should have a whole defence to your action.

In the event that you tell a creditor which you think a financial obligation is statute banned, the creditor is not likely to begin any court action against you.

The Privacy (credit scoring) Code 2014 a credit scoring body must, upon demand, eliminate default information that pertains to a statute-barred financial obligation.[ii]

6 YEAR LIMITATION PERIOD

For the majority of debts, a creditor must start court action to recuperate your debt within 6 several years of the date:

The limitation duration begins through the latest occasion when you look at the above list.[iii]

15 LIMITATION PERIOD year

The creditor has a lot more than 6 years to gather your debt including if:

They are complex problems and getting advice is suggested.

REQUESTING EVIDENCE

Unless you’re yes a debt that is old perhaps not statute barred:

You ought to request information on the debt that is alleged look for advice straight away.

Relate to our sample page: Asking for evidence below.

Once you’ve gotten the info through the creditor, get advice from a single for the contacts that are listed make certain you understand your legal rights.

TAKING ACTION

If you think that a classic financial obligation is statute banned get advice then deliver a page towards the creditor telling them this. Relate to our test page below: Alleging a financial obligation is statute banned

Relate to our factsheet I’m being hassled by way of a financial obligation collector for just what to complete if you should be being hassled with a financial obligation collector.

AN OLD DEBT IF YOU HAVE PAID OR ACKNOWLEDGED

If your creditor represents that legal action will or could be taken whenever a defence at legislation relates, this can be misleading and misleading or unconscionable in the event that debtor have not had the ability to acquire legal services.

Look for appropriate advice to learn you should still have the benefit of the debt being statute barred whether you can argue that because the conduct of the creditor.

Collection Home v Taylor [vi]

Taylor ended up being contacted of a 10-year-old financial obligation by a financial obligation collector performing on behalf of Collection home. Your debt collector said that when re re payment had not been made action that is legal be an alternative. Taylor didn’t understand that your debt ended up being statute barred.

Taylor consented she’d pay $4,500 on her behalf bank card instantly, and therefore she’d organize a $500 rise in her bank card restriction so that you can spend the balance.

Taylor took appropriate action to get her cash back. The Supreme Court discovered that Collection House had involved with unconscionable conduct.

IN THE EVENT THAT CREDITOR TAKES LEGAL ACTION

In the event that creditor takes action that is legal get legal counsel straight away: see more information below. Small amount of time restrictions use to do this.

It really is your responsibility to raise the defence that your debt is statute barred if you were to think it applies. When you do absolutely nothing, the creditor could easily get a court judgment (that you need to repay your debt).

The creditor will have up to then fifteen years – or even more – to enforce the judgment.

A complaint to the Financial Ombudsman Service or the Credit and Investments Ombudsman before judgement is entered will have the effect of stopping actual or threatened legal action in relation to credit debts in cases where the debt arises out of a credit contract.

A court judgment will be entered against you if you do nothing.

Test Letters

paragraph 20.6, Privacy (Credit Reporting) Code 2014 (Version 1.2)

Limitation of Action Act 1958 (Vic) s 5(1) and 24 – 26

Limitation of Action Act 1958 (Vic) s 5(4), see Dennehy v Reasonable Endeavours Pty Ltd [2003] FCAFC 158

Limitation of Action Act 1958 (Vic) s 20

More info

Customer Action Law CentreTelephone: (03) 9629 6300, or 1800 466 477 for nation callers.

You can call through the National Relay Service (NRS) if you are deaf or have a hearing or speech impairment,:

Financial Ombudsman ServiceTel: 1300 78 08 08h

Credit Ombudsman ServiceTel: 1800 138 422

MoneyhelpTelephone: 1800 007 007

Warning: This fact sheet is actually for information only and should never be relied upon as legal counsel. These details is applicable just in Victoria and had been updated on 31 December 2015.