statute of limitations

Hi all,im just wondering,a friend of mine was telling me,that if there was a loan outstanding with a bank,and after 5 years,when you were struggling to make payments,that they cant come after you after this time,is this true
thanks jamesy

A statue of limitations outside the dail would be a great idea! maybe a statue of the limited...

sorry, no idea about your actual query - hope somebody else can help

jamesy11 said:

Hi all,im just wondering,a friend of mine was telling me,that if there was a loan outstanding with a bank,and after 5 years,when you were struggling to make payments,that they cant come after you after this time,is this true
thanks jamesy

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No, this not true. However, if a borrower does not acknowledge a debt or make any repayments for 6 years I think the debt falls. I may be corrected on this though.

It may be different when you've already admitted the debt and tried to make payments, but the statute of limitations is six years - I'm not sure what the detailed position would be in the case you describe.

Also if there was an element of fraud involved, there might be no statute of limitations.
I'd advise you to take professional legal advice on this one.

Slim said:

No, this not true. However, if a borrower does not acknowledge a debt or make any repayments for 6 years I think the debt falls. I may be corrected on this though.

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I have to admit that my knowledge of the law in this respect is about 20 years old, but at that time to have any chance of avoiding the debt, both parties would have to have had no contact for a period of 6 years. This would mean that the bank would have stopped sending out statements and reminders etc... and the borrower would have made no repayments or communicated in any other way over the debt. Bottom line - no a very likely thing to happen!

Jim.