If you have an old debt, you may wonder if you still have to pay it? Can your creditors really take you to court after this long?
English law says a creditor only has a limited amount of time – typically six years – to take you to court. The term for a debt that is so old that it can’t be enforced in court is “statute barred”.
(You may have heard the phrase being time-barred, that means the same thing. Sometimes it is called status barred because the term statute-barred has been misheard.)
This article answers the most common questions people have about statute-barred debt, including when the six-year period begins.
If you are making payments the debt will never become statute barred no matter how old it gets. For you this article isn’t relevant, instead read Can I stop paying this old debt?
Contents
New rules for some debts – January 2019
In January 2019 there was a decision in the Court of Appeal (Doyle v PRA) that has changed the point at which the six-year period starts for some debts including credit cards and loans.
I have updated this article to reflect this.
This may lead to a lot of confusion for a while, with articles and comments on the internet describing the old position. If you are not sure what to believe or whether this affects you, talk to National Debtline on 0808 808 4000.
What is “statute barred” – an overview
Creditors have to take legal action about debts within certain times which are set out in the Limitations Act 1980. For most sorts of debts and bills in England and Wales this time is six years.
If the creditor doesn’t start court action within this time, the debt is not enforceable because it is “statute-barred”. When a debt is statute-barred it still exists legally, but because you cannot be taken to court for it, you do not have to make any payments to it.
This six-year period begins when the creditor has a cause of action – this is the point at which the creditor could go to court for the debt.
If you are making the normal monthly payments to a debt, you can’t be taken to court for it. It is only when you have missed payments and the creditor can go to court that the 6-year period starts.
Think of a timer that runs for 6 years – which can be reset
A good way to think of statute barring is that there is a 6 year timer. This is set running when the creditor has a cause of action. The sand takes 6 years to drain slowly through… at the end, your debt is statute barred.
But if you make a payment to the debt or acknowledge it in writing during the six years, the clock is reset back to start at 6 years again. So if you are making monthly payments, even tiny ones, a debt will never become statute barred as the clock resets back to 6 years every month.
What is a cause of action?
I try to avoid using legal jargon, but this point is so important that I have to talk about it.
Someone can’t sue you for a debt unless they have a good reason to – this is their cause of action. What that good reason is depends on the type of debt, how it is regulated and, sometimes, what the contract for the debt says.
This has always be complicated for some debts such as overdrafts which don’t have regular payments. You may have stopped using your overdraft 8 years ago, but your bank may not have realised this for a long while – so when would they have the right to sue you?
The January 2019 court judgment decided that a creditor’s cause of action does not start for some credit debts (including some loans and credit cards) until the creditor has sent you a Default Notice. The problem here is that you may not remember when you got that or if one was ever sent. Also the creditor can just delay sending you this so your debt may never become statute barred.
How can I tell if my debt is statute-barred?
Unsecured debts, including most loans, credit cards, catalogues and overdrafts will normally be statute-barred in England and Wales if you can say YES to all the following four points:
- it had been more than six years since you last made a payment; and
- the creditor has a cause of action more than six years ago; and
- you haven’t acknowledged the debt in writing during this time; and
- the creditor hasn’t already gone to court for a CCJ.
With a joint loan, it matters if either of you makes a payment. If you have split-up, you may think a debt is statute-barred but it isn’t because your ex has made a payment to it in the last 6 years.
Acknowledging the debt has to be in writing. If you haven’t done this, it doesn’t matter if the creditor has written to you, or you have discussed the debt on the phone – this won’t stop the debt being statute barred. If you have reclaimed PPI, this is likely to have acknowledged the debt.
The cause of action is the most difficult point to determine here. See this National Debtline factsheet which has a section on When Does the Limitation Period Start Running?
If you can say Yes to points (1), (3) and (4) but are unsure about point (2) on the cause of action, I suggest you call National Debtline on 0808 808 4000 and talk through your situation with them.
Sometimes the exact date a debt becomes statute barred matters:
- if you write saying that a debt is statute-barred and you are wrong because the debt isn’t, then your letter is likely to have “reset the clock” by acknowledging the debt;
- if you have received a court form about a debt, you need to know whether you can defend the case on the grounds the debt is statute barred.
Questions about different sorts of debt
Statute barring for secured debt – mortgage shortfalls
If your debt is still secured – you are still living in the house there is a mortgage or a secured loan on – then statute barring isn’t relevant. What matters is if you get too far into arrears the lender can go to court to repossess your house.
But what about when the house has been sold so the security no longer exists but you still owe money on the debts?
For a debt resulting from a mortgage shortfall, the time allowed in the Limitations Act is twelve years. But many lenders follow the old Council for Mortgage Lenders code, now part of the MCOB Rules (Mortgage Conduct of Business), that says:
anyone whose property was taken into possession and sold more than six years ago, and who has not been contacted by their lender for recovery of the outstanding debt, will not now be asked to pay the shortfall.
See National Debtline’s Factsheet on Mortgage Shortfalls for more details, such as what does “contact” mean? And phone National Debtline if you are contacted about a mortgage shortfall debt which is between 6 and 12 years old.
Do tax debts or benefit overpayments become statute barred?
Tax debts such as Income tax and VAT do not become statute barred. If you are wondering if your debt is a “tax debt”, HMRC has a list of “not tax debts”, which do become statute barred.
The situation regarding benefit overpayments is more complicated – although they can become statute-barred, there are other ways the debt could still be recovered. You should take advice about these sorts of debts – contact National Debtline or your local Citizens Advice are very good with benefit issues.
What about old council tax arrears?
A council should not go to court and ask for a liability order for council tax arrears more than six years after the council tax became due. But if the council already has a Liability Order, this will never become time-barred.
If you get a letter out of the blue about a Liability Order for council tax arrears from ten years ago, this may feel very unreasonable. One of the main reasons time limits exist is that people don’t keep paperwork forever, so you may have no way of proving that you paid the debt at the time. This is one of the rare occasions when it may be worth asking the creditor to Write-off the Debt. It may also be worth getting a local councillor involved for council tax arrears.
What about utilities?
Gas, electricity and water bills become statute barred 6 years after the date on the bill. There are also rules regulating when a supplier can “back bill” – send a new bill for charges more than 12 months old. If you think you have a problem with back billing, go to your local Citizens Advice and ask for their help.
Getting letters and court forms about a debt you think is statute barred
Can I ignore a letter about a statute barred debt?
Are you 100% sure that it is statute barred? If you aren’t certain talk to National Debtline.
If you are do not recognise the debt you should probably write a “Prove It” letter to your creditor. This is worded so that it doesn’t acknowledge the debt.
If you do recognise the debt but you are certain it is statute-barred, you could ignore a letter. But it might be less stressful to reply pointing out that it is statute-barred rather than get more letters and possibly court forms. National Debtline has a template letter you can use here.
Can I ignore a Letter Before Action/Claim about a statute barred debt?
This is a bad idea. It is much easier to challenge a creditor by saying the debt is statute barred using the Reply Form than it is to defend a court case.
See How to reply to a Letter before Action which looks at what you should do when you think the debt is statute barred.
I have been sent a Claim Form for a statute barred debt – what should I do?
Do NOT ignore the Claim Form. If you do, a judgment will be made against you in default because you haven’t replied, even if your debt is statute barred.
So if the creditor takes you to court, you must defend the claim on the grounds that it is statute-barred. And also look at whether you have any other defences eg can the creditor produce the CCA agreement.
If you are unsure what to write on the defence form, phone National Debtline and talk to them.
Other FAQs about statute barred debt
I live in Scotland
This article isn’t relevant if you live in Scotland where the laws and time limits are very different. I suggest you phone National Debtline who have Scottish experts.
My debt is statute barred, do I still owe the money?
Yes. Your debt still exists, it hasn’t been written off, it can still get sold on and you may still receive letters about it.
The Financial Conduct Authority’s rules about statute-barred consumer credit debt (loans, credit cards etc) are here. They say that if you state you will not pay a statute barred debt, the creditor cannot continue to ask you to pay it.
If you want to get rid of the debt completely and you are absolutely sure a debt is statute-barred, you could consider making a very low Full and Final Settlement offer, perhaps under 10% – see Full & Final Settlements for more details. Your letter should point out that the debt is statute barred and hence unenforceable.
A debt has dropped off my credit record – is it statute barred?
Possibly not! Obviously your debt is old but it may not be statute barred.
The six-year period for the Statute of Limitations is NOT the same as the six-year period that a debt stays on your credit file after a default. If a debt isn’t showing on your credit file it may be statute barred but it may not be.
A debt will stop showing on your credit record six years after any default was recorded. But if you have made some payments to it in the last 6 years, perhaps just a token £1 a month, then it isn’t going to be statute barred.
My debt has been sold, does this effect becoming statute barred?
No, it doesn’t matter if your debt is sold. The six-year period still runs from the date of your last payment or written acknowledgement of the debt.
The sale doesn’t “reset the clock”. If it was already statute-barred at the time it was sold, it remains statute barred.
When does a CCJ become statute barred?
It never does. But if the creditor hasn’t taken any enforcement action in six years, they will need to apply to the court for permission if they want to enforce the debt by using bailiffs. This is unusual but if it happens to you, contact National Debtline.
My debt is statute-barred – if I reclaim PPI will this re-open the debt?
Once a debt is statute barred this is permanent, it can never become “unbarred” so applying for a PPI reclaim won’t change this. So it’s safe to reclaim PPI on a statute barred debt.
But if the reclaim is successful, the lender will sometimes not send you the money but set it off against the remaining debt – even though it is statute barred the debt still exists. In this situation don’t use a claims company, or you could end up owing them money.
Any other questions?
I can’t give you advice on whether your debt is likely to be statute barred, so if you are concerned about a specific debt, then phone National Debtline on 0808 808 4000. Or you could use their good web chat.
But if you have a general question about statute barred debt, ask it in the comments below.
Updated 2019 for the new court judgment
why pay a debt that isn’t on your credit record
What to do if you receive a court form
Is this default date for a debt wrong?
Colin says
I had an overdraft with RBS – which was within their approved limit – for £4500. In 2014 I lost my job and was notified by RBS that’s they were cancelling my overdraft and wanted immediate payment of it. They have since passed the debt to a number of collection agencies, each of whom I have not contacted and have made no payments to. Can they now enforce this or is it statute barred ?
Sara (Debt Camel) says
what date did RBS tell you they wanted immediate payments? Did they ever issue you with a Default Notice, if so, what date? Is there a default on your credit record, if soo what date?
Jake says
Hi Sara,
I had to leave the Uk unexpectedly as my student visa ran out. I had an overdraft of £200 with Barclays and also a mobile contract.
Upon return to the Uk 2 years later, I went to the bank to reinstate my old account and I was told it was closed and that they didn’t have any information. A few months later I saw on my Transunion credit file that a default had been registered in 2015. I have not contacted them about this till date.
The phone company sold the debt which would be the remaining term of my contract to a debt collection agency – to be honest I was really confused as I was unaware of any debt, so I used the prove it letter, they sent me the phone records but I have refused to engage them ever since then. The default was registered late 2014.
I just really need advice as I believe these two defaults are affecting my credit score. Barclays never chased up the money and in most cases when I tried to remind them of my account details can’t see much details apart from the fact that it is a closed account.
The debt agency the phone company sold this to keep sending me offers but I believe I haven’t received anything for the past 6 months.
Should this come off my credit file anytime soon ?
Sara (Debt Camel) says
Defaults drop off your credit record 6 years after the default date on the credit record.
But of course the debt collector may decide to go to court for a CCJ, which would then be on your credit record for another 6 years. If they make you a good offer to settle, accepting it might be a good idea.
Jake says
Thank you Sara,
I don’t agree that I owe the bill stated from the phone company and when I did reach out to them, they couldn’t give any further information because they had closed the account and sold it to a debt agency.
If I settle to get them off my case, would this still not remain for another 6 years ?
Sara (Debt Camel) says
have you taken the complaint to the relevant Ombudsman?
James says
I have a student loan debt from 1997 that was sold to a DCA around 2015. I haven’t made a payment or acknowledged the debt since the early ’00s, but the DCA slapped a default on in 2017 and say that the cause of action’ began then. Does a debt have to be in default before a cause of action begins?
Sara (Debt Camel) says
An old-style student loan debt – I suggest you talk to National Debtline on 0808 808 4000 about this.
Joel says
I am from Venezuela. Back in 2014 I enrolled in a post graduate program in England. In 7 june 2014 I made the first and only payment to my tuition fees.
To pay the rest I was waiting for the goverment to approve my request to exchnage venezuelan currency into pounds (in Venezuela you need goverment permission to do this kind of Transaction.)
[edited]
Sara (Debt Camel) says
Hi Joeal, your two comments were very long and complicated. You need someone to talk to you about the details of your cases, that person is not me.
I suggest you phone National Debtline – they can be phoned from outside the UK https://www.nationaldebtline.org/EW/information/abroad/Pages/living-outside-the-uk.aspx
Joel says
Hey! Thanks anyway.
I think I might just tell the university about my current situation, with my employer putting my contract on hold and everything, and see if they can wait until lockdown is lift here to resume discussion.
Thanks again.
George says
Hi Sara,
I have an old debt from 2010-2011 that I did not realise was outstanding to virgin media. As I am looking to buy a house I recently signed up to credit references agency’s and this is where I realised this debt was outstanding.
The amount is small, however although payments could not be taken in mid 2010 this debt seems to have never been defaulted. Therefore it has remained on my credit report as an account in arrears and missing payments which date every month until June 2020 (current).
My question is what recourse do I have for this, as surely almost 10years later this should not still be being reported on my credit file and adversely affecting it?
I can pay this amount, however I would like removal of this from my credit rating as it is something I was unaware of, and being almost 10 years old now surely should not still be recorded on my credit file, thought these issues usually only stay on the file for up to 6years.
Any information you can provide would really be appreciated.
Thanks
Sara (Debt Camel) says
Have you carried on using the Virgin account? If not, when did you stop?
George says
Please could you delete my surname and sorry for multiple posts.
George says
Hi Sara,
I have an outstanding debt from 2010 that I was unaware of until I recently looked at my credit file because we are looking to get a mortgage.
The account in arrears is not for a lot of money and I am able to repay this at any time, however the last contact I had regarding this debt was in 2011 and I’ve had nothing
since (I have moved house etc but email has never changed)
It appears this debt was never defaulted and has remained as an account in arrears and missed payments every month since 2010, but I was completely unaware.
Do I have any recourse for dealing with this, it’s almost 10 years old but is still on my credit account as missing a payment every month.
Can you please advise, thanks ever so much
Sara (Debt Camel) says
what sort of debt was this and who was the lender?
George says
Hi Sara,
It was for broadband with virgin media.
Apparently I didn’t finish the contract and payments were not completed in 2010
Sara (Debt Camel) says
so what happened? Did you move house? Did you ever get letters from them?
George says
I actually moved out of the apartment that this account was connected with. The last correspondence I can find relating to this is an email dated 05/06/2011 requesting the payment. Other than this, which I must have missed at the time I have received no phone call, letters, or notifications of default. I was completely unaware that this outstanding debt still existed until yesterday when I got hold of a credit report from a specific agency.
Is the any legal requirement for a lender to go through the default process by a certain point, or is this date up to them? After doing some reading I’m under the impression most outstanding debts are defaulted after a period of 3-6months. This is not the case with mine and these missed payments have just remained in arrears
Marie says
I bought a TV of Bennet’s 2007 it broke after nine months they took t back for repairs gave me a second hand courtesy TV I rang after two weeks the shop had ceased trading heard nothing for 10yrs untill now they sold the debt and asking me for 2.996now s this debt statuer bard they say the new company have had a ccj against me and a charging order how can this happen after 10yrs ineed advice what to do they say if I pay 2396 in90days it will be ok why pay for a TV that I don’t have my name
Sara (Debt Camel) says
I have deleted all your personal information – I cannot look into this for you.
You can phone National Debtline on 0808 808 4000 – they are open on Saturday morning.
Or you can contact your local Citizens Advice and ask for their help to look into this.
Joseph says
I received a ccj in September 2017 in my absence for a credit card debt from 2011. My last payment was around May 2011.
This would mean that the ccj was given against me over 6 years of the limitation periodit would be 6 years and four months after my last payment.
Would this be a defence to have it set aside?
I have had no contact with anyone during this period.
Sara (Debt Camel) says
I suggest you talk to National Debtline on 0808 808 4000 about this.
Francis Smith says
A UK company has debt, which has been contractually secured on real estate owned by the UK company.
The creditor/lender has never chased for the debt and no payment has been made.
There is no correspondence with the lender.
Would disclosing the debt as a liability in the financial statements (publicly available on the UK company register) be considered to be an acknowledgement it in writing, which could be used by the creditor to avoid the debt becoming statute barred?
Another way of asking the question is whether including the debt has a liability in the financial statements of the debtor company means that the debt can never be time-barred?
Sara (Debt Camel) says
Sorry but I cover personal debt here. I suggest you ask your solicitor.
Tom Roy says
Hello Sara,
I was living in UK in 2014 and had a a credit card of I think 1200£ but left the UK back to Slovakia.
Its been almost 6 yeard since last payment. Not some company after almost 6 years sent me email about this matter, that they will try to help me to work it out…etc… I didnt reply…is there any chance they can ho after me in my home country or should I leave it like that?
Thank you
Sara (Debt Camel) says
I suggest you talk to National Debtline – they can be phoned from abroad https://www.nationaldebtline.org/EW/Pages/contactus/debtadvice.aspx
Tom Roy says
Ok Sara thank you, but if I speak to them isnt it reseting a clocks of being statued barred?
What is your opinion on this case?
Sara (Debt Camel) says
National Debtline are a debt advise agency. Talking to them is not the same as talking to your creditors, it can’t rest the clock on statute barred debt.
Phil says
I had a CCJ registered in 2014 for a debt way back from 2003. The company sent the court papers to one of my old addresses, otherwise I would have contested it. Doing this meant they won by default. The CCJ was removed from my credit file this year. Throughout the 6 years I had the CCJ they made no attempt to collect or enforce the debt. Now I believe they sold the debt on to a different company who have sent me letters shortly after the CCJ was removed from my file. What advice would you give me in this situation?
Sara (Debt Camel) says
A creditor has to go to court to enforce a CCJ which is over 6 years old – this permission is very rarely given. I suggest you talk to National Debtline on 0808 808 4000 about what you should do.
Achantele says
I had a multiple loans with moneyshop in 2011. My last payment was 2012 with them chasing for payment onwards. In 2013 there records show i made some payments via a debt collection firm equidebt so they took the account back then my payments ceased again end of 2012. They applied a default (exact date uknown i have asked for this info yet to received to but thet confirm has come off credit file as passed 6 years since applied this). In 2016 i advised on phone i was liaising with step change and will be in touch which i didnt.
2017 phone call made by me to the company wanting to raise a complaint under affordability remit they refused. No contact made with me by the company following this between 2017 and 2019 Debt and default removed from my credit file as time passed. Then april 2020 passed debt to CRS legal threatning me with legal action. i have attempted to challenge this over email, june 20 not acknowledging debt but acknowledging past loans requesting affordability claim to be considered again and asking for details of said debt they say i owe.They have refused my claim. Is this debt statute barred? Ive worked really hard to satisfy all my olds debts, with defaults. im worried about them applying a ccj when its already been on my file and when dropped off they are attempting to apply again?
Sara (Debt Camel) says
2017 phone call made by me to the company wanting to raise a complaint under affordability remit they refused.
They refused on the phone? did you have any correspondence by email with them about this?
Achantele says
No email and i cant recall if they sent a letter i dont think they did?
Sara (Debt Camel) says
if you made an affordability complaint that would have reset the statute barred claock. I can’t tell if there is anything in writing to confiirm this or not.
Did you ever make any payments through StepChange?
Achantele says
No i never made payments via step change .. last record of payment is 2013 via equidebt … ive challenged current debt collection threats citing statute barred .. their reply was simply that although the debt is no longer on credit file havong passed 6 year mark it is still enforceable.. if there is doubt about 2017 affordability complaint reseting clock .. am i best making a plan with the debt collection company to repay . This will mean its not on my credit report ratger than risk a new ccj being placed against me ..
Sarah J says
Hi. Hope you can help. I have applied to the courts to set aside a CCJ ive recently noticed on my credit file. It wasnt there in April 2020 but for some reason it showed up in May 2020 dating back to 2017. The CCJ was served at the wrong address. The claimant has accepted the CCJ was served at the incorrect address and therefore they will be asking the courts to set it aside.
The last payment I made was Feb 2011. The CCJ according to my credit file was put on my file June 2017. Based on last payment its over 6 yrs. They state they served a default notice Sept 2011. However this too was sent to the wrong address. I was not living at that address at that time. I moved out before 2010. So where do I stand with Statute Barred and from when would they start the time limitation. Last payment date or date of default notice issued/applied/sent to wrong address?
The claimant is asking for me to sign a consent form in which they agree to set aside the CCJ but are asking for a settlement figure of 500. The full balance owed according to them is 947.
Sara (Debt Camel) says
The simplest argument is that the 6 years starts from the default notice. Which would mean that it was not statute barred in June 2017 and will not be statute barred when the CCJ is removed, as the clock stops when the CCJ was applied for. On that basis you may want to settle (or make a payment arrangement) for as little as you can get as you don’t want them immediately starting a new court case.
If you want to try to argue that the 6 years runs from an earlier point so it was already statute barred in June 2017 talk to National Debtline on 0808 808 4000 and/or post on the Legal Beagles forum: https://legalbeagles.info/forums/forum/legal-forums/court-claims-and-issues.
There is another reason why the debt might be unenforceable – if the creditors cannot produce the CCA agreement for the debt. But that only works with some types of debt – again National Debtline can talk to you about this.
Sarah Jones says
Thank you so much for a prompt response even on a weekend. The court at this point has requested further evidence from the claimant. Copy of original contract. Copy of the deed assignment from original creditor. A copy of the notice of assignment. The default notice. A certified statement of accounts between claiment and defendent. If the above is not supplied. The court said they will strike it out without further order.
If they dont have the original contract its possible they cant enforce it or may back off.
I didnt understand this point from the courts.
Any party by this order made without notice to them and / or of the courts own motion may apply within 7 days of its service upon them, for the order to be set aside or varied.
I dont know what the above means. Do I need to do something within 7 days to have it set aside as part of the set aside process.
Should I await the courts to receive the info from claimant and see what the court orders after the due date. Which is about 2 weeks.
The claimant has already accepted its been served at incorrect address. They really want to set it aside and settle out of court.
Sara (Debt Camel) says
I don’t give advice on court cases, I am not a solicitor. And I don’t know the details of your case. I don’t know if there is anything you have to do or it would be helpful to do.
Please phone National Debtline on Monday. And/or post on the Legal Beagles board.
Sarah Jones says
Thank you. Ive put up a post on LeagleBeagles. A lot of interesting reading both here and your suggested forum.
Sarah says
Hi Sara
My son has received a letter/statement from Lowell’s regarding an old debt that they have purchased he has not paid anything since Feb 2015 but on his credit file it gives default date as Aug 2016. We are thinking of sending a CCA letter would this reset the clock? The debt was for Tesco Bank loan they have put the original agreement ref number on the letter so would that mean they have the CCA details?
Sara (Debt Camel) says
Can I ask what the rest of his financial situation is like? Does he have other debts ha hasn’t been paying?
Sarah says
Hi Sara
Yes he seems to have a few debts defaulted all at the same time August 2016 you have helped us with this site with guarantor loans & have had so far Amigo and Bamboo agree loans were unaffordable ( Amigo still waiting for figures) but had confirmation from FOS last week! Still waiting on outcome for three more!
Last week Lowell sent 2 statements 1 for Tesco Loan and 1 for 02
Sara (Debt Camel) says
yes asking for the CCA agreement will reset the clock. But realistically there is litle chance of lowell fogetting this debt and not doing anything about it until it is statute barred. …
Sarah says
Thanks Sara it’s worth a try & then if not perhaps offer a final settlement?
Thanks again for all your help
Christopher Folarin says
Hello,
I have two defaults the first one is SANTANDER UNSECURED PERSONAL LOAN with a balance of £3,988.00 with Account Settled date
25/07/2014. Although I have been paying £1 since the beginning of the Year due to Job loss. Tomorrow is 6 years since default. My questions, If it drops off my Credit file, Can i still be pursued for the loan? Will it still have adverse effect on my Credit Score for not settling? Can the money still be enforced by Wescott?
Second one; LINK FINANCIAL (LBG) with a balance of £6,233.00, Account Settled 24/06/2015, although, I haven’t been making payment recently and it has been put on hold due to the Pandemic. I recently offered a settlement figure of £2,500 but this was rejected by Link Financial, They demanded about £4K and also sent me Income expenditure form in post. Please advice, Is there any point of paying a large sum to clear the money because I have already got a default and it just about a year away before it drops of my Credit file?
Unfortunately, I just realised there 2 Instances of this on my record, Original Creditor was Halifax, I have since contacted both parties to remove one Instance and made Experian aware of the duplicate.
Regards
Chris
Sara (Debt Camel) says
Santander loan – you have been making payments to this so it will never become stature barred. if you stop paying when it drops off your credit record they can go to court for a CCJ.
When it drops off your credit record it will no longer affect your credit score.
Halifax – if they have sold this to Link, it is correct that the Halifax debt will still show but it should show a balance of zero. What sort of debt was this – loan, credit card overdraft?
Abc says
Hi sara
I’ve had a letter from Tesco bank which is a yearly statement of a personal loan taken out in 2010. I wrote back to tesco with your stat barred template and they confirmed that the last payment to the account was in June 2012 and that they have sent statements every 6 months and as such they believe the account is still enforceable, I wrote back clearly saying that the account is stat barred as no payment or contact made since June 2012 but they are insisting that because they sent statements every 6 months they say that its not stat barred, I asked for a final response letter as I said im going to escalate to fos and they say their final response remains the same and not changing it, any advice would be great.
Sara (Debt Camel) says
Have they ever sent you a Default Notice?
Abc says
Hi sara
Thanks for getting back.
As far as I’m aware I never had any communication from them at all up to this point. The account was in default on my credit report for 6 years but dropped off nearly 2 years ago.
Abc says
Hi Sara,
This is the final response from Tesco:
In light of the communication we’ve periodically issued to the information held on record, we wouldn’t view the debt as
unenforceable and would continue to recover the monies owed, in line with the agreement signed by you.
There has been no payment or contact since January 2012 from me or as I’m aware from them, but as above they are saying as they sent statements periodically so they don’t view the debt as unenforceable, is this them just totally ignoring the the limitation act?
Sara (Debt Camel) says
it sounds like it to me. I suggest you talk to National Debtline on 0-808 808 4000 about what to do next.
Tommy says
Hi Sara
I’ve had a debt for over 6 year now the original company was shop direct a catalogue company. My account was defaulted with missed payments due to a mental illness and I set up a payment plan paying £1 a month after a while I received letters informing me my debt was in the hands of a debt company and to keep the payment plan going I had to switch payment to them I was bombarded with letters and phone calls which I ignored and kept the £1 per month payment going after a while I received a letter saying Lowell group had taken over and I changed the £1 payment plan to them. And again I was bombarded with letters and phone calls which I ignored then they stopped contacting me years went by with no contact my credit score was marked red now six year has passed and the debt has been cleared from my credit score. Now the phone calls have started again and a pre legal assessment letter offering a 40% discount has arrived. I don’t know what to do can they take me to court or do I contact them and try to make a counter offer to settle the debt.
Any advice would be a great help.
Sara (Debt Camel) says
When did you last make a payment to this?
Do you remember if Shop Direct ever sent you a Default Notice?
Mark says
My son has just received a letter from a dca, acting for a company that bought the debt from his bank, for a loan that was taken out in 2010….he’s since move home a couple of times….and had no correspondence from anybody saying the debt has been sold etc.
Would he need to pay /acknowledge the new company etc…..there is nothing showing on his credit file about it
Thank you
Sara (Debt Camel) says
It may be statute barred. I suggest he talks to National Debtline about his options – 0808 808 4000. If he ignores it, it is possible he may have to defend a court case.
John Page says
I have an 8 year old debt that I haven’t made a payment on for 7 years. I’m not being actively pursued for it, but it sits on my credit file as ‘6 months late’ and looks to have never been defaulted. I’m not in a position to make a payment…Is there any way of getting it off my file other than paying it in full? Ethically I’d much rather pay it but I have to explore all options open to me.
Thanks.
Sara (Debt Camel) says
What sort of debt is this? Is it still with the original lender or has it been sold to a debt collector? when were you last contacted about this debt?
And is this your only debt problem?
John Page says
Sorry, bit more detail – It’s a Halifax student account overdraft. I entered a repayment plan with them in 2012 but unfortunately lost my job, so the last payment was 2013. I had updated them with my new address as originally I signed up with my University address, but on my credit file it has the original address on. I haven’t heard from them since 2013 and yes, it is my only debt.
Sara (Debt Camel) says
when was the first 6 months late marker applied?
John Page says
September 2014, and then ever since it shows for every month up to now.
Sara (Debt Camel) says
So you can ask Halifax to add a default back in Saptember 2014. the debt would then drop off your credit record immediately as the deafult would be more than 6 years ago.
The problem with doing this is they are likely to ask you to start make repayments to it. You may be happy to start paying them an affordable amount every month?
It can be hard to argue that an overdraft is statute barred. If you want to do this, it may be better to live with the current credit record problam for at least a nother year before contacting them. If you want to talk about the statute barred issue you can try national Debtline on 0808 808 4000.
John Page says
Thanks for replying. I’ve actually managed to get a job which starts at the end of the month, so making payments will be possible by end of October. If they haven’t actioned anything in the last 6/7 years, do you think it’s likely they will in another year? If they retroactively default it, and I pay it off in say the next year or so, I guess that’s the best case scenario credit file wise? When I write to them are there particular laws/acts I should quote?
Thanks again for your help.
Sara (Debt Camel) says
See https://debtcamel.co.uk/debt-default-date/ which looks at what to say about the default date.
do you think it’s likely they will in another year?
I can’t really guess, sorry.
John Page says
Thanks for your help again. The part about overdrafts often being defaulted later adds ambiguity into the mix. Is there of obtaining the ts and Cs of an old account?
Sara (Debt Camel) says
it does indeed. You can ask for the t&Cs but I am not sure that they are likely to help you.
Dave Winter says
My wife had unpaid loans and store cards 14 years ago. We moved 13 years ago to a new address.
Several debt recovery companies have attempted to contact her but she has never responded.
Is is correct that this has now dropped off her credit record, and a search by a new credit card company
would not locate these debts?
Thank you in advance
Sara (Debt Camel) says
Is is correct that this has now dropped off her credit record, and a search by a new credit card company would not locate these debts?
2 things could have gone wrong. A lender may not have defaulted her but could have left the account sitting at 6 months in arrears… this I’ll never drop off. Or a debt collector may have got a CCJ in the last 6 years.
Has she looked at her credit records? With all three credit reference agencies? See https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to do this.
She should check on Trust Online to send if any debt collector has taken out a CCJ using her old address as this may not have been linked to her current record yet… see https://debtcamel.co.uk/do-you-have-ccjs/
Jay says
How long do missed/late payments remain on your credit file? (Would it be from the date that it is settled?)
Sara (Debt Camel) says
If the creditor has added a default, then the debt drop off 6 years after that.
Otherwise this drops off 6 years from the date the account is settled.
James says
Hi Sara,
I have been reading through this today, I know a file will drop of the credit file in 6 years from the default date, and i read that if you acknowledge a debt this will restart the status bared 6 years, does this mean that the file will no longer drop of your credit file as it also restarts the default date or does this mean the company can only take court action within the 6 year period but the default will still drop of your account?
I am hoping i have explained that correctly :)
Sara (Debt Camel) says
if you acknowledge a debt this will restart the status bared 6 years, does this mean that the file will no longer drop of your credit file as it also restarts the default date
no, the default date can never be changed whatever you do. So the record will still drop off after 6 years.
or does this mean the company can only take court action within the 6 year period but the default will still drop of your account?
That is confusingly worded. As I have just said, the default will still drop off your credit record. but that has NOTHING to do with whether the debt is statute barred or not. A debt may not be on your credit record but may not be statute barred, in which case it can still be enforced in court.
It may be simpler if you actually talk about the specific debt you are concerned about, rather than generalities.
Alex says
I recently asked my creditors for CCA. Thanks to your advise Sarah. It’s been 6 days now and still waiting.
One of the creditor sent me a letter Stating that because of COVID-19 they cannot provide me hard copy they can only provide me an electric version but I need to send them my email and all other details like my date of birth and address. What shall I do?
Shall I insist for a hard copy?
Can they get away with that excuse if I will stop payment? Would they have rights to take me to court?
Sara (Debt Camel) says
why not just give them the details?
Aleksandra says
1. I understand that it’s ok for debtors to provide me an electronic version of CCA.
2. I should just provide them with necessary details.
Philip says
Hi Sara, Having looked at your advice to many other people I hope you can perhaps help me. Back in 2013 I left England to live and work in Thailand which I am still doing and will be for the foreseable future. However when I left England I did leave a credit card debt. I did speak to someone at the credit card company by telephone to tell them that i would continue payments after i started work here but i have not been able to pay anything since i left the UK. I have not had any contact from them or any other and I have not made any contact with them.
I still have a house in England but it is a shared ownership property that was bought with my friend after my marriage break down and i do not have any income from this. Please could you advise me as to how i stand with this. Thanks for your help. Philip.
Sara (Debt Camel) says
is the house the address the credit card company would have had for you?
would you have know if letters have arrived for you from creditors or the court?
Philip says
No I don’t unfortunately because I have not been back to England since 2013, and my Co owner of the house wont open my mail and he has never mentioned any problems on the occasional times that we speak on e. mail.
Sara (Debt Camel) says
So if a creditor hasn’t taken you to court the debt by now the debt may be statute barred, but this isn’t certain as you don’t know if you have been sent a default notice. And you don’t know if you have a CCJ, which would never become statute barred. It’s unlikely you have a CCJ and the creditor has gone to court for a charge over the house as the co-owner would have heard.
Philip says
Hi again Sara, thank you so much for the information that you have given me. I realise from what you have said that I really need to get more info from my co owner .and I will contact you again if that is ok. Thanks again.
Sara (Debt Camel) says
When you get the extra information, I suggest you talk to National Debtline. they can be called from abroad on 0044 121 410 6200.
Ricki says
Hi Sara
I got a CCJ from a water utility company in 2010. The delinquency fell away after 6 years, but I have not been able to pay anything since 2010 due to long term illness. I moved in with elderly parents in 2017, so the account has not been used until now. I am much better now and looking to get my financial situation in shape again. I don’t owe any other creditor. Please advise if the utility company can issue me with another CCJ or the debt is statute barred? I have not written or spoken to the company since 2010. There is no payment history or default from the water company on my credit file.
Ricki
Sara (Debt Camel) says
It isn’t possible to get a second CCJ for the same debt.
CCJs never become statute-barred. BUT after 6 years a creditor has to go back to court to get permission to try to enforce the CCJ and this is VERY rarely given.
So for a 2010 CCJ you are probably pretty safe!
If you want, you can contact them and offer to pay it in full, or offer a partial settlement.
But equally you could just wait and see if you are ever contacted by them – because this may never happen.
If you are contacted again, I suggest you talk to National Debtline on 0808 808 4000 about your options.
National Debtline can help you with what to say to the creditor, challenging if this CCJ is too old to be collected.
Ricki says
Hi Sara
Thank you so much for the excellent help.
Jus a quick ask. Can they put a default on my file for the debt that accumulated on the account after the 2010 CCJ? Currently there is no record of this debt on all credit reference agencies.
Also, if I arrange a partial payment as settlement, could they not turn around and put a marker on my credit file to reflect this? I am worried they may decide to take the amount that accrued after the 2010 CCJ as separate, then pursue me.
Having recovered from illness, I really want to give myself another chance of normal life, but I am not financially very strong.
Ricki
Sara (Debt Camel) says
yes you still owe the money from after the CCJ. Although some of the earlier bills may be statute barred… Are you still in the same house?
Ricki says
Thanks for clarifying.
I have moved to my parents’. But I was in the same house from 2010 to 2017.
Sara (Debt Camel) says
So are you staying in your parents house? Or getting a new address which will mean opening a new account with them?
Ricki says
I am staying at my parents’ house since 2017. I got a final bill when I moved – I have mail redirect for my old address that has the debt. The bill does not include the old debt for which I got the CCJ.
Sara (Debt Camel) says
Ok so you have 2 debts to them – the CCJ – which is now probably too old to enforce. And the new debt from 2010-2017. You may be able to argue that this final bill contains various years that had already been billed so some of them are already statute barred. I suggest you talk to National Debtline on 0808 808 4000 about this.
Martin says
I have not voluntarily made a payment in over 6 years but about 4 years ago my bank who I had a credit card and account with went into my account and took a payment towards my credit card. I did not ask for this and complained and the payment was returned to me. Would this be classed as making a payment. If so the clock would be reset and I will be furious as it was not authorised by me. Thanks
Sara (Debt Camel) says
Is there a default date on your credit record?
Were you ever sent a Notice of Default?
Has the debt been sold to a debt collector?
Are you being asked for payment?
Martin says
Thanks, a default was raised in October 2015 by TSB and now the debt has been sold to arrow and they have now contacted me in writing. The6 have now started contacting me but I don’t want to tell them the amount is barred and inadvertently acknowledge the the debt if this is not the case. I am aware the guidance on statute barred says a payment has not been made but I would argue taking money from my account is not making a payment. For information I live in Scotland and I know statute barred here is 5 years.
Sara (Debt Camel) says
The problem may be that although clearly you did not make a payment, you may have “acknowledged the debt” at that time.
There is also the problem of when/if you were ever sent a Notice of Default, as the above article suggests.
I suggest you start by telling Arrow that you consider the alleged debt it is statute barred, point out you live in Scotland and see what they say. Also ask them to supply the CCA agreement for the card. See https://debtcamel.co.uk/ask-cca-agreement-for-debt/
Martin says
Thanks, I believed that you had to acknowledge the debt in writing which I havent. I will tell them when they contract me and see what they say. I will also ask for copies of the statements for those months too which will show the payment if they dispute it. Thanks again.
Frank says
Hi I have a debt dating back to Feb 2016 which emanates from a road traffic fine from Rome, Italy where they alleged I rode down a one way street the wrong way. I have over the last couple of weeks been chased aggressively by a English solicitor to pay the fine and wondered whether this fine is still valid. This is the first time the debt has come to my attention and I have not engaged with the solicitor.
Sara (Debt Camel) says
I suggest you talk to National Debtline about your options and how this alleged debt might be enforced in England.
Richard Murray says
Hi, hope you can help?
I have an old credit card debt where the last payment was made into the account in October 2014. So it has now been over 6 years. There has been no communication or payments in all of this time. On my credit record, it states that this account is delinquent and has been marked as missed payment every month since then. So a couple of questions on this:
1. As per the new court ruling in 2019, can this account stay open with missed payment marked every month forever, or until the company mark it as defaulted?
2. As it has been over 6 years, is there anything I can do to get this cleared off my credit file without starting any new process?
3. As it has been over 6 years, but not officially been declared defaulted, can the debt still be chased?
Thank you advance for your help.
Richard
Sara (Debt Camel) says
1. As per the new court ruling in 2019, can this account stay open with missed payment marked every month forever, or until the company mark it as defaulted?
yes, but that has nothing to do with the new court ruling, it’s just the way credit card reporting works.
2. is there anything I can do to get this cleared off my credit file without starting any new process?
You can ask the lender to add a default in late 2014/early 2015. But this is likely to “reswet the clock” and prevent the debt from being statute barred. Talk to National Debtline on 0808 808 4000 about this.
3. As it has been over 6 years, but not officially been declared defaulted, can the debt still be chased?
Yes, but this has nothing to do with whether it is defaulted or not. You are getting statute barred confused with defaulted. Please phone National Debtline who will explain.
G Smith says
With regards to AMEX credit card defaulted in 2012,sold by AMEX to solicitors 2013.Letters sent to me, with reference to a ‘JUDGEMENT’ that the solicitors claim was obtained on 7th Jan 2014. I never received this Judgement, had no CCJ, either sent/recorded on file.
In AUG 2016 GENERAL FORM OF JUDGEMENT or ORDER from AMEX taking me to court for total debt (£4000) to obtain ATTACHMENT of EARNINGS ORDER. I had spoken to the court just days before and informed them that at the time I had no salary or earnings – and proved this with bank statements, etc – and as a result the AMEX application was dismissed.
AMEX were given 14 days to prove I had a salary…which they chose not to try and do.
The letters continued to arrive from the SOLICITORS, claiming that the mystery 2014 JUDGEMENT (of which I know nothing about and has never been recorded on any credit file, etc) would be enforced if I didn’t pay the outstanding balance.
On the 8th Jan this year, which was 6 Years and 1 day after the date of this mystery JUDGEMENT (7th Jan 2014) I got another letter offering a 70% reduction in the amount due…but with no further threat of ANY legal action.
Can I assume that following the court decision in 2016 when AMEX failed to get an attachment of earnings…no other legal action was taken…..and the first JUDGEMENT from Jan 2014…whatever it was… has now either expired..or was made up by the Solicitors to scare me?
There has been no threat of legal action this year either.
Sara (Debt Camel) says
did you ask the solicitors to produce a copy of the judgment?
G S says
Good morning and thank you Sara for your reply.
I have not contacted them yet. I am still a little unclear as to how to contact them with regards to ‘admitting liability for the debt’ etc.
Pleas could you advise me how which method I should use to contact them and also how to word it?
Much appreciated.
Sara (Debt Camel) says
I can’t imagine why you did not ask for a copy of the judgment back in 2016.
If there is a judgement it will never become statute barred so there is no worry about acknowledging it, it isn’t relevant. After 6 years a creditor has to go to court to get permission to enfoce the CCJ and this is rarely given.
If there isn’t a CCJ, then the question becomes whether the debt is statute barred. See the article above. I don’t suppose you know if you were ever sent a Default Notice by AMEX? This has nothing to do whether they added a default to your credit record.
Who are the solicitors acting for?
Gs says
Thank you again.
The solicitors are acting on behalf of American Express
I only noticed the detail about the 2014 judgement when going through old post. It’s only mentioned once. I didn’t see it at the time. Being abroad.
Is it worth contacting American Express directly ?
I did have default letters/ statements from them in 2013.
And on the subject of statute barred – does a Failed Attempt at getting an attachment of earnings also make it impossible for it to be statute barred now ?
Thank you again so much.
Sara (Debt Camel) says
If you were abroad then it seems quite possible that the court papers for a CCJ were sent to an address where you did not see them. If there was a CCJ it will never be statute barred but after 6 years they have to go to court to seek permission to enforce it, which is very rarely given.
It would be highly unusual for solicitors to lie about having obtained a CCJ and go to court for an attachment of earnings. Why would they do that, not just go for a CCJ if they didn’t already have one?
You could phone Amex on Consumer Credit and Charge Card Members
UK Executive Customer Relations
Phone: 0800 917 8047 or +44 (0)1273 696933
And say you want to make a Subject Access request for all the personal information they hold about you.
Or of course you just sit back and wait to be contacted about this.
gary smith says
Hi Sara,
Firstly thank you so much for all of your replies. It is greatly appreciated. If I do call AMEX and make a Subject Access request for personal information, does this form an ‘Acknowledgment of Liability” etc with regards to the debt being now potentially statute barred?
Secondly what will the result of this request show/prove?
Thank you again.
Sara (Debt Camel) says
I don’t see how asking for information can be acknowledging a debt – if you are worried about this, talk to National Debtline. Or do nothing and wait to be contacted – you can always ask for the information then.
It may show you the details of when they obtained a CCJ.
Shashika says
Hi Sara,
I have few credit cards debts which have been defaulted since 2013 and 2014. Most of those debts has been sold from the original lender to the debt collectors.
Since it’s been six years, all of the defaults debts have been dropped from my credit report. I have never made any payment and I didn’t make any form of communication with debt collectors or the original lenders.
Can they still pursue this debt since it has been six years? Are these debts statute barred ?
Thank You
Sara (Debt Camel) says
Do the debt collectors have your current address?
Have you been contacted by the debt collectors and ignored them, or have they never contacted you?
Shashika says
Thank You for you response.
Debt collectors don’t have my current address. But since 2014 I have been relocated few times.
Sara (Debt Camel) says
1) is the debt statute barred? read the article above. Unless you remember receiving a Defualr Notice in 2013/14 it can be hard to be sure. Having a default on your credit record does NOT mean a default notice was issued at that point.
2) can they still pursue this debt – if the debt is statute barred this is a defence to a court case. But the debt collector can still start a court case and your problem is that if they don’t know your address, it is possible that they will do this and you won’t receive the court papers and so will get a CCJ. This can then be challenged but it’s a lot harder to do it this way than if you knew they were looking at going to court.
It’s hard to know what to suggest here. In addition to the statute barred defence, it may also be that the debt collectors cannot produce the right paperwork for the debt (see https://debtcamel.co.uk/ask-cca-agreement-for-debt/).
You could wait and hope nothing happens. Zero hassle now but it may go badly wrong. Or you can contact the debt collector, when you will definitely be asked to start payment, when you can ask for the CCA and assert the debt is statute barred.
Shashika says
Thank you very much for taking your time to reply me promptly. The information you provided is very helpful. I will keep this thread to update any changes to my situation.
Thank You.
Chris says
Hi, I have one default debt on my credit report. If I pay it in full, will it be disappear from my credit report or will it be shown as settled?.
I am planning to apply for a mortgage, so is it better to leave the debt as default or settled? Thanks
Sara (Debt Camel) says
It will stay as settled. It will drop off 6 years after the default date.
If you have an unsettled default it is very unlikely you will get a mortgage except at a dreadful interest rate.
Emily says
Hi Sara. I took a loan out with RBS in the mid 2000s. I have made no payments on this for the best part of 10 years. I made no payments, I haven’t acknowledged the debt or spoken to anyone or written to them in the past 8-10 years. I have had no court action or request for payments in at least the same amount of time. I have just received a letter today saying that Cabot have taken over the debt from Arrow (didn’t even know they had the debt as I’ve never received a letter or call from them).
Would this debt be statute barred? What would be my next steps for this? I’d appreciate any advice.
Sara (Debt Camel) says
Did you ever receive a Default Notice from RBS?
Emily says
Not that I can remember and I have had no correspondence or phone calls from either. It’s not on my credit report either.
Sara (Debt Camel) says
1) unless you are sure you received a Default Notice it can be hard to be absolutely sure if a debt is statute barred or not, as the article above explains. but after so long you have a good case for saying that it is. Talk to National Debtline on 0808 808 4000 about this.
2) it’s always worth checking your credit reports with all three credit reference agencies as they may not all show the same thing. See https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to do this for free.
3) for such an old debt, it is also well worth asking the current creditor Cabot to produce the CCA agreement for the loan. See https://debtcamel.co.uk/ask-cca-agreement-for-debt/. National Debtline can also help with that.
Kelly McKenna says
Sorry to jump on but I’ve just had EXACTLY the same thing happen to me. I’ve had overdraft fees with Lloyds from over 12 years ago which I’ve heard nothing about in several years – I’ve had a letter from Cabot out of the blue this morning.
Elaine says
Hi Sarah,
I took out student loans at various points between 1998 and 2009. I was claiming Income Support, Housing Benefit and Tax Credits at the time and didn’t realise that I had to declare them as they were loans. Someone has recently told me that I was supposed to have declared them and now I’m really worried that I will get into trouble for it. I haven’t been claiming any benefits for at least 10 years and have been working from home since the beginning of Covid. I have 2 questions: 1) Is it likely that the benefits agency or HMRC will come after me for the student loans that I didn’t declare – I have been paying them off for some years now as I am working; and 2) Due to home working I understand I can claim tax rebate and I’m worried about doing this in case it sets off the circumstances I describe in Q1. How likely is this? Many thanks for your help.
Sara (Debt Camel) says
I can’t say for definite if the loans should have been declared, it may depend on the exact loans and the rules around income for the benefits you were claiming at the time. More than 10 years later this may require a specialist benefits adviser. As a matter of practicality, unless you are being asked to pay something, this may not be worth spending time on at the moment but if it is worrying you, I suggest you talk to your local Citizens Advice.
In my experience, “old” DWP/HMRC debts can tend to emerge if someone makes a claim for a new benefit, often Universal Credit at the moment.
I haven’t seen anyone having an old debt being triggered by a simple tax refund application. That isn’t to say it is impossible but I would be surprised if it is common.
In the case of the working from home tax releif, the government has made this as simple to claim as possible. See https://www.gov.uk/government/news/54800-customers-claim-tax-relief-for-working-from-home. I doubt anyone actually looks at any of the applications. And I would be surprised if the HMRC system is linked in any way to the DWP system, but it is possible.
Lynne says
Hi Sara, a question, I held an old egg card from 2000 (ish) to 2008 (ish) I cant tell for certain the time periods as of course credit files don’t go back that far. I defaulted on the payments before 2004. Eventually the debt has been bought (I presume) by Arrow Global Reconnect who in Jan asked a different company to collect the debt (they said it was for 4500 on behalf of Arrow Global Reconnect), I sent them a letter stating I did not acknowledge the debt and that they would have to prove it. The other company (Not Arrow) have contacted me to say that they have returned the file to Arrow who might contact me or assign a different collection agency to it. Should I be concerned?
Sara (Debt Camel) says
Well not really. Just see what you get sent next.
Lynne says
Hi Sara, Just to give an update I finally received a reply from Arrow stating that after they investigated and confirmed that it was statute barred and they have removed me from their files. I am keeping their reply just in case they try to sell it on to another firm as I read somewhere that some firms will try this tactic.
Sara (Debt Camel) says
Good result!
LoPo says
Hi.
Your website has been so helpful, but I’m looking for some advice. I have a payday loan which I never repaid (young, stupid and trapped in a payday loan cycle). I took out the loan in November 2013 and I haven’t made any payments and I basically ignored all the calls and emails.
The thing is, the loan company (Wizzcash) never sent a default notice and they mark a late payment on my credit file every single month. On my credit file, the loan is ‘in arrears’, not in default.
I’ve been trying to fix my credit, and I thought this would have dropped off by now with it being so long ago. Will this be on my file forever? Do loan companies have to default an account in a certain time?
Sara (Debt Camel) says
did you have previous loans from them that you repaid?
LoPo says
No. Just the one loan
Sara (Debt Camel) says
so there is little point in making an affordabiltiy complaint. Yes the debt will stay on your record forever. as it is. You can insist they add a default back in 2014 so it will disappear from your credit record but if you do, they will ask you to pay it. You can argue that the debt is statute-barred but talk to National Debtline on 0808 808 4000 about this … if it is statute barred then it can never become unbarred and the claock cannot be reset.
An alternative approach would be to live with it for another year or so thinking that the older this is the better – that isn’t exactly a legal argument but it feels right. Also if they go into administration you can then ask the credit reference agency to remove the debt as it should have had a default added.
James says
Hi,
Sorry to jump in I am having same issue with provident(satsuma) its with the FCO just now but I have reported it to Experian twice as provident confirmed with it should be at default in 2018 but telling Experian a different thing.
I feel your pain.
LoPo says
It’s annoying isn’t it! I don’t want to start the clock again by asking them anything and I don’t know what to do about it.
Sara (Debt Camel) says
That is very different as there is no question of statute barring and no question that the creditor appears to have forgotten about the debt. I suggest you leave FOS to resolve this one.
Boniface says
Hello Sara (Debt Camel)
In October 2020 a letter out of the blue from a Debt Collector on behalf of a local council for an overdue council tax up to and including the period Aug 2014.
I have reached out to the council as I was unsure. The council confirmed that they did not give my current address to the Debt Collector and they are unsure how the debt collector got my current address. I have asked for a record and it was posted showing no council tax payment was received between Oct 2013 to Aug 2014. Which I find bizarre as it is unusual to go months without paying.
I have since changed banks and the banks cannot produce any records beyond 7 years. It has been so tedious to get the banks to act quickly and last week I got bank statements from Jan 2014. The records they produce do not show any payments on my part. Based on this record, I tried to log in to the debt collectors website to make automated payments; but my account is now inactive.
Is this a possible case of statute barred debt? I would like to apply for a mortgage this year and it will be dreadful to get a CCJ on my record. This debt does not show in any of my credit files from Equifax, TransUnion and Experian.
In the meantime, the council has written to me with billing date Jan 2021 for the full amount that was due in Aug 2014.
My question is about the risks of getting a CCJ or default on my record based on this bill. Is that still possible?
Weatherman says
Hi Boniface
What a strange (and I’m sure frustrating) situation! Hopefully the information below is helpful.
Firstly, missed Council Tax payments don’t show up on your credit report – and there’s no risk of a CCJ. If the Council got a Liability Order against you they can take action that might affect a mortgage application (e.g. an Attachment of Earnings that would reduce your income, or even making you bankrupt if the amount was high enough, although it’s very unlikely to be in your case).
But you’re right that this could be a statute-barred debt. If the Council has not yet applied for a Liability Order, then because six years have passed, it can’t now apply for one. (It’s a bit unlike other statute-barred debts, as the six-year time limit doesn’t ‘reset’.) It can still chase you for the debt, but can’t enforce it in the courts.
If it has got a Liability Order (and Councils tend to get them quite quickly once an account is in arrears), then it can enforce the Order indefinitely. The Council should be able to tell you this.
Even if this *is* statute barred, it could still be worth paying the debt. This is because mortgage lenders will sometimes ask for *any* debts that you owe, even if they don’t show on your credit report.
Colin says
Hi,
I have old utilities bill from British Gas dating back to 4/7/2015 it says. I was several hundreds of pounds in credit in the January and moved out in the May. Meter reading given to then and they revised the bill to me owing over 400 pounds.
I questioned this with then asking the to go and read the meter to ensure I had not inaccurately read. They provided meter readings lower than when we moved in.
I had Co tested this with them for several years not acknowledging the debt.
This has now been passed to Lovell solicitors who are trying to recover the money.
On my credit report is says that the account is closed.
Has the debt become statute barred or am I still liable to pay the money.
Any help appreciated
Colin
Sara (Debt Camel) says
The debt cannot be statute barred as it is less than 6 years old.
The BG account will show as closed because it has been sold to lowell, who at some point will add a new open record that should have the same default date that the BG record did.
The situation sounds complicated, I suggest you talk to your local Citizens Advice about whether the debt can be contested.
Matt says
I was wondering if you could help me with a query.
I have a debt which should be about to go statute barred. However I put in a complaint to the financial ombudsman a year after it defaulted.
Considering I have not contacted the company admitting the debt is mine, nor have I made any payments since 2015. Would the debt still be considered statue barred when the time period since my last payment expires at the end of February?
Or will the fact that the financial ombudsman have dealt with my case have reset the clock from the date my claim was considered close by the FOS? Thank you.
Sara (Debt Camel) says
Not sure I understand what has happened. FOS won’t look at a complaint unless the firm has had a chance to reply first?
Who is the creditor and what sort of debt is it?
Sarah says
Hi,
My partner has a debt with a utility company which I believe is due to be statute barred. His last payment was made in Feb 2015 and we battled for around 4 years disputing the amount as our electricity bills were extortionately high (£700+ a month) and we believed a neighbour had wired in to our electrics however nobody, landlord, police or the utility provider cared to check this. We have since moved and although we didn’t notify them of our address we have now had two letters chasing the debt. Am I correct in assuming this is statute barred as we haven’t paid since 2015 and refuted the bills entirely? Should we send the statute barred letter to the latest debt collector? Thanks.
Sara (Debt Camel) says
I suggest you talk to National Debtline on 0808 808 4000 about the details of your situation, whether the debt is statute barred and what you should do.
Jayne says
Hi Lowell have sent me a Claim Form for which I have filed a Defence stating that the loan is statute barred since the last payment I made was in 2014. They have now replied saying it is not statute barred. What do I do? They are quoting the cause of action.
Sara (Debt Camel) says
I suggest you talk to National Debtline on 0808 808 4000. And/or post on the Legal Beagles forum: https://legalbeagles.info/forums/forum/legal-forums/court-claims-and-issues/received-a-court-claim
Matthew says
Hi Sara.
I have an old debt which is due to go statute barred.
However when I log in to check my credit report on either credit karma, Experian or equifax, there is no record of it anywhere.
Is it possible for creditors to sometimes remove debts from my file, and could it be re-added at a later date? I’ve checked every tab, active accounts, closed accounts, settled accounts, but I cannot find any record.
Sara (Debt Camel) says
did it used to be on your credit record?
what sort of debt is it?
which creditor owns it at the moment?
how do you know it is statute barred?
Matthew says
It did used to be on my credit file.
It was hire purchase for a car I previously took out for my ex (we were together when I took it out). The initial creditor sold to a debt collection agency by the name of Debt Managers. It was listed on my credit report by them too.
I have been checking my credit file religiously the past 10 months, however for the past 8, the debt is not on there at all. It doesn’t appear as satisfied, late, default, there is no trace of it anywhere.
Im guessing it is due to go statute barred. The last payment made was back in February 2015, and the default first registered in May 2015. Both of which have or will be soon passed the timeframe of more than 6 years ago.
Sara (Debt Camel) says
Unfortunately unless you were sent a Default Notice (do you remember this?0 it may be hard to show that the debt is statute barred, see the article above.
I can’t guess why the debt has dropped off your credit record. You don’t want to ask the debt collector or it may reset the statute barred cloack.
If it has been sold to another debt collector it may pop up there. It should have the same default date as before so it’s good you have some evidence that that was May 2015.
Kelly McKenna says
Hi.. I had an unpaid overdraft with Lloyds Bank from over 12 years ago. Since switching to a different bank, I have made no payments to clear this (a lot of it was overdraft charges and mounted up massively). I haven’t heard anything about this for several years now but received a letter out of the blue this morning from a debt collector. What can I do? Thank you
Sara (Debt Camel) says
Talk to National Debtline on 0808 808 4000 about your options.
Lukas says
Hello,
Can you tell me please if I should contact credit reference agency for dispute.
Basically my THREE account has been opened on 22/10/2014 , I didn’t make any payments since then as I moved abroad.
I can see on my credit file that there is no data since 2015.. what I can on the report is message UPDATED 10/09/2017. Is that mean that 6 years starts from updated date ?
I have few same account that open date is far away from updated date – and not even sure why is updated , nonpayment has been made etc…
Kindest Regards
Lukas
Sara (Debt Camel) says
If there is no default date on the credit record, a credit record will remain until 6 years after the settlement date. So forever if nothing is changing…
You can ask 3 to add a default date back 3-6 months after you missed a payment. So that would be early 2015 and the debt would then drop off 6 years later so very soon.
But your problem here is if you contact 3, then may ask you to pay the debt. It’s old, but it can be hard to be sure that it is “statute barred” and a creditor cannot take you to court for a CCJ. Talk to National Debtline on 0808 808 4000 about this.
You may decide it is better to wait another 6 months to be more sure about this before contacting a creditor.
Vera says
Please could I have some advice about Statute/Time barred. I have several debts from 8 years ago. They are all now with debt collection agencies (Hoist, Lowell, Link & Cabot) I have had an arrangement in place to pay £1 a month for most of this time. Its unlikely I will actually live long enough to ever clear these debts & I was going to write to ask if they would consider writing the debt off. Am I correct in thinking that these debts would not be statute barred because I have been paying them ? Would you advise me to send the letter or just stop the payments ? Any advice would be appreciated. The debts are for a mail order catalogue, 2 credit cards & a Northern Rock loan.
Sara (Debt Camel) says
These debts will never become statute barred as you are paying them. And if you just stop paying you are likely to end up with a CCJ.
BUT it is possible the debt collector that now owns each debt will not be able to produce the right paperwork. See https://debtcamel.co.uk/ask-cca-agreement-for-debt/. If you want any more information on it, ask National Debtline on 0808 808 4000.
I think this is worth asking for first, before you ask for a write off. Unless you are a pensioner or in poor health, it isn’t easy to get a write off.
Jim says
I’m confused about when the 6 year timer starts for (what I can only assume is) an overdraft. I believed my Lloyds TSB account had been closed over 10 years ago when I switched my current account to a different bank (First Direct). Today, out of the blue, I have heard from a debt collection agency that I owe £670 to TSB.
I checked my credit report and the account is showing as DEFAULT with a Date of default 15/10/2019 (coincidentally(!) the exact same day I switched current account again, this time from First Direct to Monzo).
I have not heard from, nor contacted TSB (or LLoyds), nor have I paid any money into or taken money out of the account or checked my balance or used a debit card for over 10 years – I had long forgotten about it and believed it was correctly closed when I left!
Does the statute barred timer start from 10 years ago, or the random 2019 date shown on my credit report? Thanks.
Sara (Debt Camel) says
is the debt collection agency collecting on behalf of TSB? Or have they c=bought the debt from TSB. If you read the letter/email carefully this should be stated.
Jim says
Thank you so much for replying so quickly!
There is a box on the right that says “Working on behalf of TSB Bank plc”
The wording in the letter body says:
Wescot are a specialist debt collection agency and we have been instructed by our client, TSB Bank plc, to make contact with you to discuss the outstanding balance on this account and the repayment options available based on your personal circumstances.
Sara (Debt Camel) says
Statute barring for an overdraft is difficult. You could talk to National Debtline about this on 0808 808 4000.
Ignoring this contact is a bad idea, you may end up having to defend a court case.
One alternative now would be to reply to Westcot and say that you do not acknowledge this debt, to the best of your recollection you had closed your TSB account over ten years ago when you switched to First Direct and you have had no contact from them since about this. Say you have now looked at your credit record and you see there is a default from 2019. Ask for that record to be deleted as (a) there should not be a balance and (b) if there is, then it would have defaulted over 10 years ago.
See how they reply.