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UK Victory as plan shelved - 26-Nov-2009

UK Victory as limitations act plan shelved

Government has backtracked on plans to reduce the statute of limitations. Justice minister Bridget Prentice last week announced that the draft Civil Law Reform Bill will be published in December but will not contain provisions to reduce the time civil debts can be chased from six years to three as previously planned. The move follows uproar in the credit industry and concern that the courts would be flooded with litigation if the reforms went ahead.

In a written parliamentary answer, Prentice said: "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."

She added: "In addition, the courts have remedied some of the most significant difficulties with the law that the 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."

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