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.