Agencies calling telling you you’d a pay loan and there is now a judgement against you day

Agencies calling telling you you’d a pay loan and there is now a judgement against you day

A financial obligation can be statute banned (too old to pursue) due to the fact Limitations of Actions Act 1958 (Vic) puts a restriction regarding the time a creditor has got to just simply take action that is legal recover a financial obligation.

There are certain good reasons for having an occasion limitation for a creditor using appropriate action, including:

  • as the days slip by, appropriate proof will be lost;
  • its oppressive, also “cruel”, up to a defendant to permit an action to be brought long following the circumstances which provided increase to it have passed away.[i]
  • In case a creditor begins court action against you, therefore the financial obligation is statute banned, you should have a whole defence towards the action.

    That you believe a debt is statute barred, the creditor will be unlikely to start any court action against you if you tell a creditor.

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


    A creditor must begin court action to recover the debt within 6 years of the date for most debts

  • which you endure made a payment; or
  • you admitted written down you owed your debt.
  • The limitation duration begins through the event that is latest when you look at the above list.[iii]


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

  • a court judgment is entered, in which particular case a 15 year limitation period is applicable for new actions (such as for instance some bankruptcy proceedings);[iv]
  • your debt pertains to a home loan over home in which particular case a 15 12 months limitation duration pertains. [v]
  • They are complex problems and advice that is getting suggested.


    Until you are certain a debt that is old perhaps perhaps not statute banned:

  • try not to acknowledge which you owe your debt;
  • usually do not produce payment;
  • try not to accept a word that is creditor’s your debt your debt.
  • You ought to request information on the so-called financial obligation and look for advice straight away.

    Relate to our sample page: Asking for evidence below.

    Once you’ve gotten the details through the creditor, get advice in one regarding the contacts that are listed make certain you understand your liberties.


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

    Make reference to our factsheet I’m being hassled by a financial obligation collector for just what to accomplish if you’re being hassled by a financial obligation collector.


    In cases where a creditor represents that legal action will or might be taken each time a defence at legislation pertains, this might be deceptive and misleading or unconscionable in the event that debtor have not had the ability to acquire legal counsel.

    Look for appropriate advice to discover whether you can easily argue that due to the fact conduct regarding the creditor you ought to continue to have the main benefit of your debt being statute banned.

    Collection Home v Taylor [vi]

    Taylor had been contacted of a financial obligation that is 10-year-old a financial obligation collector performing on behalf of Collection home. Your debt collector stated that when re payment had not been made appropriate action may be a choice. Taylor didn’t understand that your debt had been statute barred.

    Taylor consented she’d spend $4,500 on her behalf charge card instantly, and therefore she’d organize a $500 upsurge in her bank card limitation so that you can pay the total amount.

    Taylor took action that is legal get her cash back. The Supreme Court discovered that Collection home had involved in unconscionable conduct.


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

    It really is your responsibility to increase the defence that your debt is statute banned it applies if you think. When you do absolutely nothing, the creditor may get a court judgment (that you need to repay your debt).

    The creditor will then have as much as 15 years – or even more – to enforce the judgment.

    In instances where your debt arises away from a credit agreement, a grievance to your Financial Ombudsman provider or even the Credit and Investments Ombudsman before judgement is entered may have the result of stopping real or threatened legal action in terms of credit debts.

    Should you choose absolutely nothing, a court judgment will likely be entered against you.

    Sample 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.

    If you’re deaf or have hearing or speech disability, you can easily phone through the National Relay provider (NRS):

  • TTY users can then phone 133677 ask for 1800 466 477
  • Talk & pay attention (speech-to-speech) users can mobile 1300 555 727 then request 1800 466 477
  • Online relay users can hook up to NRS .au then request 1800 466 477
  • Financial Ombudsman ServiceTel: 1300 78 08 08h

    Credit Ombudsman ServiceTel: 1800 138 422

    MoneyhelpTelephone: 1800 007 007

    Warning: this known reality sheet is for information just and may never be relied upon as legal counsel. These records is applicable just in Victoria and ended up being updated on 31 2015 december.

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