Agencies calling telling you you’d a pay time loan and there’s now a judgement against you

Agencies calling telling you you’d a pay time loan and there’s now a judgement against you

A financial obligation might be statute banned (too old to follow) since the Limitations of Actions Act 1958 (Vic) places a limitation regarding the time a creditor needs to simply simply take appropriate action to recover a financial obligation.

There are a variety of reasons behind having a period limitation on a creditor using appropriate action, including:

  • in the future, appropriate proof is going to be lost;
  • it really is oppressive, even “cruel”, to a defendant allowing an action to be brought very long following the circumstances which provided increase to it have passed.[i]
  • In case a creditor begins court action against you, as well as the debt is statute banned, you should have an entire defence towards the action.

    In the event that you tell a creditor which you think a financial obligation is statute banned, the creditor will undoubtedly be not likely to begin any court action against you.

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


    For many debts, a creditor must start court action to recuperate your debt within 6 several years of the date:

  • you last made a repayment; or
  • That you owed the debt that you admitted in writing.
  • 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 get your debt including if:

  • a court judgment happens to be entered, in which particular case a 15 12 months 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 limitation period applies year. [v]
  • They are complex dilemmas and getting advice is suggested.


    Until you are yes a vintage financial obligation is not statute banned:

  • try not to acknowledge you owe your debt;
  • try not to create a re payment;
  • try not to accept a creditor’s term that you borrowed from your debt.
  • You need to request information on the debt that is alleged look for advice instantly.

    Relate to our test page: Asking for evidence below.

    Once you’ve gotten the knowledge through the creditor, get advice from 1 of this contacts that are listed make sure you understand your liberties.


    Then send a letter to the creditor telling them this if you believe that an old debt is statute barred get advice and. Relate to our test page below: Alleging a financial obligation is statute banned

    Relate to our factsheet I’m being hassled by a financial obligation collector for just what doing if you should be being hassled with a financial obligation collector.


    If a creditor represents that legal action will or might be taken whenever a defence at legislation pertains, this might be deceptive and misleading or unconscionable in the event that debtor has not had the ability to have legal services.

    Look for appropriate advice to learn you should still have the benefit of the debt being statute barred whether you can argue that because the conduct of the creditor.

    Collection Home v Taylor [vi]

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

    Taylor consented she would spend $4,500 on the charge card straight away, and therefore she would organize a $500 boost in her bank card limitation to be able to spend the total amount.

    Taylor took appropriate action to get her money-back. The Supreme Court discovered that Collection home had involved in unconscionable conduct.


    In the event that creditor takes action that is legal get legal services instantly: see more info below. Short period of time restrictions use to do this.

    It really is your responsibility to improve the defence that your debt is statute barred it applies if you think. That you must repay the debt) if you do nothing, the creditor might get a court judgment (.

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

    A complaint to the Financial Ombudsman Service or the Credit and Investments Ombudsman before judgement is entered will have the effect of stopping actual or threatened legal action in relation to credit debts in cases where the debt arises out of a credit contract.

    Should you absolutely nothing, a court judgment is entered against you.

    Test 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 information

    Customer Action Law CentreTelephone: (03) 9629 6300, or 1800 466 477 for nation callers.

    You can call through the National Relay Service (NRS) if you are deaf or have a hearing or speech impairment,:

  • TTY users can then phone use a weblink 133677 ask for 1800 466 477
  • Talk & pay attention (speech-to-speech) users can phone 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.