So let's be clear. If before the 6 years you don't acknowledge the debt by paying something off, the loan is dead. But if you pay something back or reply to them in writing acknowledging that you owe the money say at year 5 and 11 months this means the time (statute of limitations) starts again. And then the bank have another 6 years in which to issue proceedings.
If the loan cannot be pursued after 6 years, how does it work in practice, does it automatically get taken off your ICB record etc?
It would not surprise me at all if that happened here.Does anyone recall what happened in the UK 20 or so years ago when people sent back the keys. I have a memory that the banks did nothing and waited for the stuatute of limitations to be nearly up and they then want after any debtors who had done well (bought a new home or got a good job)
They can try and proceed after 6 years but you then have to raise a statute barred defence. You could accidently acknowledge the debt after the 6 years and it would restart the clock and give a statute barred debt a new lease of life.
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