When it comes to financial claims, one term that often causes confusion is time barring.
If you believe you’ve been mis-sold a financial product or suffered a financial loss due to negligence, knowing your rights when it comes to time barring is crucial. It can mean the difference between successfully pursuing a claim and losing your right to compensation or financial redress.
At Claim My Loss, we believe in empowering our clients with knowledge. This guide explains what time barring is, how it applies to financial claims, and what you can do to ensure you don’t miss out on your chance for redress however it is important to note that if you are engaging with a regulated solicitor like us then it’s our job to navigate this for you.
Often, particularly when complaining against active companies time barring is the first justification the provider will look to, to reject your complaint or to have a case thrown out in court.
However, you can rest assured that if we are representing you, we will do all we can to address objections relating to time barring and the statute of limitations.
If you are concerned about time barring, you can book a no-obligation chat with one of our financial services claims experts here.
What is Time Barring?
Time barring refers to the legal deadline for making a claim. Once this deadline, also known as the limitation period, has passed, you lose your right to take legal action to recover compensation, even if your claim is valid.
In the UK, time barring for financial claims is typically governed by the Limitation Act 1980, which sets strict time limits depending on the type of claim and the circumstances.
Key Time Limits for Financial Claims
1. Six Years from the Event
For most financial claims, such as those involving mis-sold financial products, the time limit is six years from the date the event occurred. This could be the date you purchased the product or entered into the financial agreement.
2. Three Years from Awareness
If you weren’t immediately aware that you were mis-sold or suffered a financial loss, the time limit may be extended to three years from the date you became aware (or should reasonably have become aware) of the issue.
3. Long Stop Limit
Even if you only recently discovered the issue, there is a maximum limit of 15 years from the date of the event. After this point, claims are usually barred, regardless of when you became aware.
Why Does Time Barring Exist?
The time barring system exists to provide certainty and finality in legal matters. It ensures that claims are brought within a reasonable timeframe, while evidence and records are still available, and memories of the events are fresh.
However, time limits can be unforgiving, especially for individuals who were unaware of their rights or the wrongdoing for many years.
How Does Time Barring Affect Your Claim?
If your claim is time-barred, the defendant (e.g., a financial institution) can use this as a legal defence to avoid paying compensation. This is why acting quickly is essential if you suspect you’ve been mis-sold or suffered financial loss.
Exceptions to Time Barring
In certain circumstances, time barring rules may not apply, or the limitation period may be extended. Examples include:
1. Ongoing Relationships
If your financial adviser or institution continues to provide advice or manage the financial product, the clock may not start until this relationship ends.
2. Fraud or Concealment
If the financial institution deliberately concealed the issue or acted fraudulently, the time limit may only begin from the date of discovery.
3. Special Circumstances
Courts may use discretion to allow claims outside the usual time limits in exceptional cases, although this is rare.
What Should You Do if You’re Worried About Time Barring?
1. Act Quickly
If you suspect you’ve been mis-sold a financial product or suffered a financial loss, don’t delay. Time is of the essence.
2. Gather Evidence
Whilst we can with your consent gather information for you, compiling any documents, statements, or correspondence that could support your claim may help us in being able to submit your claim more quickly.
3. Contact an Expert
At Claim My Loss, we specialise in financial claims and can assess your case to determine whether time barring may apply.
Other Considerations
Who your claim is submitted to can also play a part in determining whether you Financial Services Claim could be time barred.
When complaining to a company directly they will likely sight time barring as an issue. If escalated to the Financial Ombudsman Service (FOS) they may take a different view and if they don’t it is possible that your case could still be heard in court.
The Financial Services Compensation Scheme (FSCS) in our experience are more flexible in their views on time barring, treating each case on its own individual merit and focusing more on whether loss has been suffered.
How Claim My Loss Can Help
At Claim My Loss, we understand the complexities of time barring and how it applies to different claims. Our team will:
1. Review Your Case
We’ll assess your situation to identify the relevant time limits and determine whether your claim is still valid.
2. Provide Expert Guidance
We’ll explain your options and ensure your claim is pursued promptly and effectively.
3. Fight for Your Compensation
Whether through negotiation or legal action, we’ll work tirelessly to secure the financial redress you deserve.
Don’t Let Time Run Out
If you believe you’ve been mis-sold or suffered financial loss, don’t wait until it’s too late.
You can contact Claim My Loss today for a free consultation and take the first step toward recovering what’s rightfully yours.
I hope you found this article helpful and would invite you to speak to one of our financial services claims experts if you have any queries. You can book an appointment with them here we hope to speak to you soon.
