Hi all sorry for the delay with this post! (For those who have registered and obtained your credit history let me know how you are getting on in the next few weeks) But here goes:

 

One of the first things you must consider is whether or not you are actually responsible for your all of your debts yes this is true! In order for you to be legally liable for a debt you would have to have signed a credit agreement, a contract for services or have acted as a guarantor.

Even if there is an agreement in place it can be affected by many things e.g: 

Is the agreement in your sole name or with another person.

At the time the agreement was signed was your ability to make an informed decision affected. 

One of the most important piece of legislation when determining whether or not a debt is enforceable is the Limitation Act 1980 This means that the right of a creditor to take court action to recover the debt expires after a certain time limit as set out in the Limitation Act 1980. All creditors are aware of this but of course it is in their best interests not to tell you about it so here is what they don’t want you to know about.

Below is a basic table which details the time in which a debt is legally enforceable. For example Mobile phone bill  your provider has 6 years from the date you receive the initial bill to enforce the debt.   

Mortgage arrears 

Finally, if your mortgage lender is a member of the Council of Mortgage Lenders or subscribed to the Mortgage Code, they have agreed not to recover a mortgage shortfall if they have not made contact within 6 years of the date of sale of a repossessed property.

Tip for the day:

Continue to monitor your credit rating this is key to identifying who your creditors are and the age of debt and remember

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