What is the Limitation Act 1980?
The Limitation Act 1980 sets out the rules on how long a alleged timeshare creditor (who you purport to owe money to) has, to take certain action against you to recover a purported debt (disputed or not). In Timeshare cases all but a few matters will be subjected to the simple contract rules and those limitations are 6 years.
The time limits do not apply to all types of recovery action and can vary dependant on the particular issues raise by the creditor. Also, the time limits are different depending on the type of debt that you have, however maintenance fees fall in contractual liability under simple contract.
Limitation periods for debts are important, because if the creditor has run out of time, you may not have to pay the debt back in any event.
What does ‘statute-barred’ mean?
Credit reference files and credit reports.
If a purported resort debt is barred under statute, it means that by law (the Limitation Act), has run out of time to use legal action (including mediation arbitration and civil proceeding) to try and make you (the timeshare consumer) pay the debt.
Statute-barred does not mean the debt no longer exists. In some circumstances, the creditor, or a debt collection agency, can still try and get money from you but it is difficult and depending of knowledge issues.
You can choose to pay if you wish. Even if the debt is statute-barred, it may still be on your credit reference file. This may make it sometimes harder for you to get further credit.
When can I use the Limitation Act?
This depends upon the type of debt you have. The TCA can assist any consumer free of charge in determining whether or not the creditor is statute barred from bring a claim and further if the consumers wishes to negotiate with the resorts to remove the negative rating them again the TCA can assist.
What is a credit reference agency?
Credit reference agencies are only permitted to provide factual information with your consent, so that a lender can make a reasoned decision about whether or not to lend you money. They do not have so called ‘blacklist’ of people who should not be given credit.
Credit reference agencies merely gather and hold information about such things as your credit agreements (including any arrears), county-court judgments (CCJs) and electoral roll information.
A lender, financer, bank, or credit card company can only pass on information about your credit agreements with your written consent. This consent is usually given by the consumer when you sign the credit agreement. Failure to obtain your consent is a breach of the Data Protection Act 1998 and will be subject to damages if the breach is significant.
County-court judgments will automatically be registered as they are public records and are kept on record for a period of six years. The information a credit reference agency retains about you is known as your credit report (or file).
Last modified: August 25, 2015