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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 50174
Experience:  Qualified Solicitor
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We are a building contractor and a subcontractor has issued

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We are a building contractor and a subcontractor has issued a spreadsheet requesting retentions be paid which are dated 2004 - 2008. Are we legally obliged to pay this or is there a 6 years and we are entitled to write this money off?
Hello, my name is***** am a solicitor on this site and it is my pleasure to assist you with your question today. Have you acknowledged this debt at any time since it became due or have you paid anything towards it?
Customer: replied 2 years ago.
We have not paid any of the retention amount that they are requesting at this moment. It is 2.5% retention amount from old jobs finished 11 years ago.
Have you admitted to them that this debt is owed?
Customer: replied 2 years ago.
You are correct that there is a 6 year limitation period for pursuing debts. There are certain exceptions which serve to extend this period if any payments have been made towards the debt in the last 6 years or there has been some acknowledgement of this debt in that time and if these apply then the limitation period would start from the time either of these happened. However, if this is a stale debt which has not had any payments made towards it or been acknowledged in the past 6 years, then the other party would not be able to bring in legal proceedings to pursue it as they would be out of time. So you can advise the subcontractor that due to the statute of limitations this debt is no longer something which can be pursued and try not to acknowledge that you owe it to them in the first place. I trust this has answered your query. I would be grateful if you could please take a second to leave a positive rating (selecting 3, 4 or 5 starts at the top of the page). If for any reason you are unhappy with my response or if you need me to clarify anything before you go - please get back to me on here and I will assist further as best as I can. Thank you
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