Victory as plans to halve civil debt duration shelved

MoJ decides changes to the limitations act will not proceed.

The government has backed down over plans to reduce the statue of limitations, after the initial announcement caused industry uproar regarding the potential consequences.

Bridget Prentice, justice minister, announced that the draft Civil Law Reform Bill would be published in December, but would not contain any provisions regarding the time civil debts could be chased – specifically reducing from six to three years as planned.

The move follows intense opposition from the credit industry itself, with concerns focused on the courts floundering under a flood of litigation should the reforms go ahead.

In a written parliamentary response, Prentice explained: "The draft Bill will not now include provisions to reform the law of limitation of actions. These provisions were based on a law commission report of 2001. But a recent consultation with key stakeholders has demonstrated that there are insufficient benefits and potentially large-scale costs associated with the reform.

"In addition, the courts have remedied some of the most significant difficulties with the law that Law Commission identified, for example, in relation to the limitation aspects of child abuse cases. The limitation reforms will therefore not now be taken forward."

Brian Havercroft, Civil Court Users Association chairman, who led the opposition against the proposals welcomed the decision: "It is pleasing to see that for once a consultation has listened to the views of the parties. It would have made so many problems for everyone, not only creditors but people in debt who would have been sued a lot earlier."

Original article courtesy of Credit Today.

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