Limitations Law

[Janner]

Nigel,

I'm hoping you can clear this one up for me as I've heard conflicting information. Is the legislation actually in force now? I've heard that there is a transition period and it does not come into force until 1st July 2013. I'm not sure at what date we all count back 6 years. Does this mean that if you loan was before 1st July 2006 you're out of time or from before the 1st of July 2007?

My loan was taken out in June 2007 so am I out of time anyway?

Nigel (or someone else) please clarify.

[Nigel Howarth]

Hi Janner - I updated the article I published on the Limitations Law on legal opinion:

The law does not seek to prevent claims being made in actions which had not been started before the law was passed. For this reason the limitation period will not expire before July 2013 in any case. Effectively, a one year grace period was given when the law came into effect last year.

Furthermore, the time period runs from the date the cause of action arose, which is not necessarily the date the contract was entered in many cases.

Regards,