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?
Hannah says
Hi Sara
I had a credit card with vanquis which I took out in 2014 . In July 2016 I made my last payment to vanquis and after that from August I have never made a payment. In August 2017 the account got sold to a debt collector and I ask for credit card statements to raise a case with the ombudsman but never made a payment. They have never contacted me since sending the statements . I am still not in position to payback the £3000 . I am not sure where I stand is the account statute barred from September. Also the default date is June 2022 which is at nine months. I would hate a ccj now to affect my credit file as I have almost cleaned it up fully. Any help would be appreciated.
Thanks
Hannah
Weatherman says
Hi Hannah
What was your reason for raising a case with the Ombudsman?
From what you’ve said, this debt wouldn’t be statute-barred util August 2023 – six years after you last acknowledged that you owed the debt by asking for statements.
If you’re not in a position to pay back the debt, or to make payments towards it, I suggste you speak to National Debtline: 0808 808 4000.
Sara (Debt Camel) says
I agree with Weatherman.
Two other thoughts. When you asked for the statements, were you asking Vanquis or the debt collector? And did you just ask for the statements? Or did you also ask for the Consumer Credit Act agreement for the card?
And the £3000 debt – was this because Vanquis raised your credit limit too high?
Hannah says
Hi Sara
Thanks for getting back to me , I asked the debt collector by email as my mental health wasn’t in a good place and didn’t want to speak on the phone . Yes just for statements not for cca . I needed the information for an affordability case against vanquis with the ombudsman but unfortunately lost the case as I had gambling winning being refunded back into my account which were above minimum payments. And was told as these were paid in that this was affordable and my limit was okay to raised.
Sara (Debt Camel) says
OK, so you have already made an affordability complaint so you cant make another one.
One option is to ask the debt collector (not Vanquis) for a copy of the CCA agreement. See https://debtcamel.co.uk/ask-cca-agreement-for-debt/ for how to do this and why it can be a good idea for debts sold to a debt collector that are marked as defaulted.
This is not guaranteed to work. But if it does, you then don’t have to pay the debt as you cannot get a CCJ for it.
Asking for this resets the statute bar again. But as Weatherman says, it isnt going to be statute barred for more than 2 years anyway. The chance of this happening is pretty slim!
If the CCA can be produced you will need to make a payment arrangement.
National Debtline can talk through all these options including asking for the CCA.
Ste says
I have an ex partner who is trying to sue me for money they said i taken 13yrs ago, aswell as interest for the time scale. The police never pursued any criminal proceedings, but now they are trying to make a claim. I have defended the claim and advised I Dont owe them nothing. can this be thrown out due to time Limitation?
Weatherman says
Hi Ste
If this is about money they say you borrowed from them with an agreement to repay, then it sounds like it’d be statute-barred, yes. But I wasn’t quite sure if that’s what the ex-partner is claiming (e.g. are they claiming this was theft?).
Statutes of limitations do exist for other issues, but you’d need to speak to someone with legal training to understand what applied in your case. Try your local Citizens Advice if it’s not a debt matter.
Dennis says
I had some CCJS 16 years ago, am starting a new job with BQ. I need to tell Experian some things, will it show on my credit record. Or auy where else.
Sara (Debt Camel) says
My guess is Experian just want your details to send a credit report to BQ.
CCJs taken 16 years should not show on a current credit report.
Only the creditors for the CCJ may still have any records about the CCJs
Dennis says
Lets hope so, Many thanks.
Mandy says
Hi Sarah, there was an Mbna credit card that I had in 2009 and in 2011 I had breast cancer and with all the treatment, surgery etc I had to leave my job in 2013. I had 9 creditors chasing me and was on payment plans with them all. This one though went to Britannica, Arrow global westcot, wilkinson and Chapman and then shoosmiths. And now capquest. I was making regular monthly payments and at times payments to MBNA and the DCA. In 2015 when it changed to Wilkinson and Chapmen they said there were several missing payments and was really confusing me. I spoke to them and asked to show a statement of account which showed cheque payments, dd, standing orders? And payments to paragon. This again was so confusing so I said I would stop paying until they sorted it out as nothing added up. In 2016 Arrow global were behind w&c and shoosmiths and i told them it wasnt correct. In the end in 2016 I sent a cca request and statement of account request and heard nothing. I lost my house and everything and moved.in 2020 I had letters from Capquest and I told them about the cca request and statement of account I sent to Arrow global was not fulfilled.
to cut a very long story short, they have sent it, the statement of account was sent over by Idem, who have never owned this account and the ref number does not relate to anything. I have always contacted them when they wrote to me but they have not supplied a correct statement of account. It says last payment was on 28th April 2015 which will be Statue barred. They recently wrote to me threatening to send someone to my home. I called them and sent an email to say it is statute barred. They now say a payment was made on 2and June . I told them I am complaining to the FCA and they have written up a complaints procedure to reply in 3 days. What is my next move please?
Sara (Debt Camel) says
can I ask if this is your only remaining debt? How large is it?
Mandy says
Hi Sarah, I have managed to pay some of my debts off and 4 debts could not supply the CCA so have not paid those. This is for £4,700
Thank you
Sara (Debt Camel) says
I think given your long hisory with this debt, including health problems, you need help from a debt adviser.
Talk to your local Citizens Advice. It may be best to ask them to write off the debt, see https://debtcamel.co.uk/debt-options/less-common/write-off/, and this request often comes better from a debt adviser than from you.
Also, they can look at the “CCA agreement” you were sent and decide if it looks OK or not.
Mandy says
Thank you so much Sarah
Mandy Bradshaw says
Hi Sarah, I emailed, and spoke to CAB and they spoke to me on the phone. As I dont have dementia or a severe mental health issue I am not classed as vulnerable, they also couldnt look at the cca. What has happened now is that Capques are looking at my complaint in detail and have put it on hold and have now sent me another statement of account that said last payment was June 2015. Would I be best placed now to contact MBNA myself and ask them for a cca and statement of account from before they sold it in 2012. Thank you
Sara (Debt Camel) says
Well wait for a reply to your complaint.
Do NOT ask MBNA for the CCA – you don’t want the CCA at all, you want the debt collector to be unable to produce it.
Clive Gammon says
Hi Sara
I have received a ppi award from a loan I defaulted on in 1993 I have not made a payment on this for around 20 years . I enquired about ppi through a company but didn’t sign anything or ask them to act for me. Then I received a letter saying I was owed some money. The bank want me to fill out my bank details so that they can put the money in my account. If I do this am I restarting the 6 year period again. Thanks Clive
Sara (Debt Camel) says
Once a debt is statute barred, you can never restart the clock, it will always be statute barred.
It may be wise to assume the claims company will ask for their percentage, so perhaps put that to one side and don’t spend it?
Clive Gammon says
Thanks for the reply very helpful. But how do I know if the loan has been state barred. I’m worried that if I sign the form from the bank i will start getting threatened by the bank again. Regards Clive
Sara (Debt Camel) says
The article above says that it’s hard to know if a debt is statute barred. But your debt isn’t just old, it’s ancient! I don’t think you will have any problems with this one – if you would like to be sure, phone National Debtline on 0808 808 4000 and talk to them about this.
Michael s o'hare says
Hi, I had a car finance in 1999. The car was repossessed about 3 weeks after purchase. Last month I had an email from PRA Group. I contacted them as I couldn’t sign into the website. I thought they were another debt firm I was paying at 10 month for a different debt. They said they had the wrong DOB, so I rang them and found out it was this old debt. I’m sure I had a ccj back in the early 2000’s. I told her on the phone I was not agreeing to the debt, and Also sent an email with a template from the national debt agency stating the debt was statute barred and I was not liable. I never have made any payments towards this debt . Just wonder what will they do next. Can you get a second ccj for the same debt. They said they bought the debt in 2001.
Sara (Debt Camel) says
Can you get a second ccj for the same debt.
No!
If there wasn’t a CCJ, then the old dad must be statute barred by now.
If there was a CCJ, then it never becomes statute barred but the creditor will find it very hard to enforce the CCJ after 6 years as they have to go back to court for permission which is very rarely given.
If they get back in touch with you, I suggest you talk to National Debtline on 0808 808 4000 about your options.
Sam says
I have old debts going back to 2008 I had a DMP plan but stopped paying it in 2013. I was redundant on benefits, I could not afford to and also because we moved out of the country.
I returned last year. I am on state pension. My debts were sold on to Robinson Way, Cabot and Rutheridge. I believe they are part of the same group.
I know my debts are Statute Barred as I have never been in touch with the debt collections agencies in any form or made any payments. and its well past the 6 yr time.
However, recently I started getting letters asking for payment with offers of 10% for settlement.
I do not want to pay as I cant afford to. I contacted National Debtline and they advised to send these companies a standard letter to say that the debts are statute barred and that they should stop contacting me. I have the template.
I am happy to do that however my question is that if I send this letter, will it open up lines of communications and will it make the companies become more aggressive.
2nd Question, what if I continue to ignore them and not bother replying? what will happen?
Thank you for your time.
Sam
Sara (Debt Camel) says
if I send this letter, will it open up lines of communications and will it make the companies become more aggressive.
If you hadn’t heard from them since 2013 and you were just worried they may reappear, there is a case for saying let sleeping creditors lie.
But they have contacted you and they know where you live.
what if I continue to ignore them and not bother replying? what will happen?
I can’t say for definite, but it is possible they will take you to court for a CCJ. You could defend the court case on the grounds the debts are statute barred, but it seems simpler to write to them now as National Debtline has suggested.
sam says
Thank you for your reply Sara.
I do not have any CCJ’s. As I said, I was on a DMP plan.
However, if I understand correctly, so there’s no harm in sending each of these companies a letter (based on the Template from National Debtline) about the debts being Statute Barred? and they cannot enforce any action or open the cases again?
Sara (Debt Camel) says
I don’t know what National Debtline said to you or what the creditor may say when they get the letter. They may deny it is statute barred because you paid them £100 in January 2018 (…I just invented that!)
What I am saying is that ignoring letters from a creditor is often unwise and National Debtline has suggested the debts are statute barred so you should send that letter. If you are uncomfortable about this, go back and talk again to National Debtline?
Sam says
Thank you for this. You right.
Will write to them and see what happens
Sam says
Hi Sara,
Just to update you, I send off the Statute Barred letter, I’ve received a reply regarding 2 of the debts.
On one of the debts, they have closed the account in their system and have returned the file to their Client Cabot Financial, at their request, so that they can deal with the matter I have raised. Any ideas what this means and should I also send Cabot a Statute Barred letter or just wait for any further correspondence?
While on the 2nd, with the same debt collection agency, a simple statement stating that the account is closed and they have returned the fileay that their client Cabot Financial, the legal owners of this debt. Again, do I need to do anything further?
I am still waiting on the 3rd Debt which is with Robinson Way.
Thank you for your advise, thus far.
Kind regards,
Sam
Sara (Debt Camel) says
You just need to wait and see what Cabot say.
Sam says
Thank you Sara,
I will let you know what happens.
Most grateful for your good advice.
Kind regards,
Saleem
SAM says
Hi Sara,
I sent the Statute Barred Letter to one of the company’s that contacted me about an old debt. They have written back with this reply:
“Please be aware that County Court Judgement (CCJ) has been secured against this debt; therefore your liability has been established for the debt. As a result, we are not obliged to provide you with documentation you referred to and the rules governing the statute of limitation do not apply. The CCJ was secured on 1st May 2014 with Case NoXXXX. If you would like to dispute this debt, then you can contact the court on Tel NoXXXX). Alternatively, if you do not wish to contact the court to dispute liability, then please provide us with your proposal for payment by completing and returning the attached financial statement”…
They said they will place the account on 30 day hold but if they do not hear from me, normal collection activity will resume.
Can you please help and advice what I can do and if they can still follow through with the enforcement of this CCJ. What are my options.
Thank you and kind regards
SAM
Sara (Debt Camel) says
I suggest you talk to National Debtline again about whether this CCJ can be enforced as it is more than 6 years old.
SAM says
I called National Debtline,
It was a very strange conversation.
The Advisor wasn’t very clear about it. Honestly, I am no more wiser about it now than when before I called him. (I think there’s more information on your site than what I learnt from the Advisor. perhaps he wasn’t so experienced as he kept asking to be put on hold while he asked).
One thing, the advisor suggested I write to Hoist Finance and ask them to provide me with full information, and also write to the courts for copy of the information regarding this.
He also mentioned about getting legal advice which was most worrying.
I may have to call them again and get more clarification.
Any advice please? It’s most worrying!
Thanks and regards,
Sam
Sara (Debt Camel) says
well that is good advice from National Debtline – if you didn’t know there was a CCJ, go back to the court and ask for the full information.
But ultimately if there is a CCJ and National Debtline say it is enforceable, you are on a state pension and renting (are you?) so you just offer then £5 a month. It would have been nice to get rid of it, but a low monthly payments isn’t a bad option is it?
Chris says
Hi Sara,
My wife purchased her council house under right to buy provisions in Jan 1989 in joint names with her then partner. The house was repossessed in Feb 1991 at around the time I met her. I remember regular letters to her asking to increase repayments of 1/3 of the £19,600 discount for a period of time while we lived in another council house. I don’t believe she was paying anything back and we always assumed it was her partner who was paying. Then we bought our own property in 1999 and I can’t remember hearing anything about it since then. My wife died this month and I am now concerned that this debt could be pursued. I have placed a deceased estates notice in the Gazette and paid extra for a notice in local newspaper which I assume will be sufficient to prevent any claim from the council after 2 months, 1 day. But I was wondering about the likelihood of them pursuing such an old debt after hearing nothing from them for 20 years.
Thanks for any advice,
Chris
Sara (Debt Camel) says
I don’t know if this debt is so old it is statute barred. Obviously it is incredibly old, but I don’t know if the rules around statute barring apply to this sort of debt. And if they do, It may matter when her ex last made a payments.
Of course her ex may have repaid the discount in full so there no longer is a debt.
I think you need some advice on this – talk to National Debtline on 0808 808 4000.
If the debt is not statute barred, then it is possible that you have a duty as the executor to notify the creditor. I don’t know that placing an advert is sufficient when you know there is a creditor and you have not informed them. You may need to take legal advice on this.
DJ says
hi
Can anyone please help me. I had secured loan on my property but could not afford both property and loan installment. They reposssed my house in 2007.I was under the impression that secured loan company must have covered there money from the house. After about 14years I have received a letter form the secured loan company today that i have to pay them their money back. I changed the address after the repossion of my property twice. I am living on my current address for last eight years and never received any letter or anything from them .I have checked my credit report no CCJ nothing is there. Could you please tell my what should i do, should i contact them saying its Statute barred debt?
Thanks in advance
Sara (Debt Camel) says
I suggest you talk to National Debtline on 0808 808 4000 about whether this old debt is statute barred.
MM says
Hi sara,
I remember opening an account with Barclays in 2007/2008 had an overdraft of £200. I didn’t pay it nor did they write to me. Will the bank still be able to see the debt. Thanks
Sara (Debt Camel) says
Possibly. Why, do you want to apply to them for a mortgage or something?
Lukas says
Hi Sarah,
I had two accounts from Scottish Power opened in 2015, I left from this address in 2016 and never paid for this bills. I can see from my credit report that they defaulted this account back to 2018.
I spoke today with them , and they said that account never went to dept agency, instead they try make contact with me between 2015-2018 , and they decided close this account , and as punishment they put date 27/07/2018
I offered to pay for this dept with them today , and they said that accounts are closed and paid from them ,
What I can do to sort my credit report as is showing every month default , do I have to wait until 2024 for this to go from my file?
Sara (Debt Camel) says
Are you saying the bills are wrong or just the default date?
When did they stop billing you?
Have you sent them a complaint about this?
Lukas says
Hi , I stop paying on the end of 2015.. and they put default date 2018 – as they said they were trying to contact with me.
Now accounts are closed, but my defaults are still in Credit reports. They are marking every month default on my report, even when accounts are closed from there said.
I even ask them if I can pay in full so they can mark partly satisfy- but accounts are not existing anymore … and I have still default..
They are billing for the last few months in 2015 and first 6 months in 2015 , the bills were for gas and electricity 113 pounds and 325 pounds , what I don’t understand how is possible that the default this accounts almost 3 years after I stop paying …
not sure if make sense that for you …
Lukas says
No I spoke on the phone today. I asked them what’s the reason to default my account after such a long time. They said that they couldn’t located or contact me and they have rights to decided when to default accounts that in areas.
So I’m confused as I said to them since 2018 this accounts are on my file as defaulted, debt is no longer debt as they cleared their books and closed my accounts , so in reality this debt is not existing as been aged ? So why is still showing default if they no longer kept my accounts ?
Sara (Debt Camel) says
I suggest you read https://debtcamel.co.uk/debt-default-date/ which explains when a default date should be added. That says when an account is 3-6 months in arrears. So this would be 3-6 months from the last bill they produced – it sounds as though this should be in late 2016?
So send Scottish Power a complaint to dataprotection@scottishpower.com and say your credit record is not a true record of your account as a default should have been added when you were 3-6 months in arrears as https://secureservercdn.net/160.153.137.210/mb9.87b.myftpupload.com/wp-content/uploads/2020/08/Principles-for-the-Reporting-of-Arrears-Arrangements-and-Defaults-at-Credit-Reference-Agencies-vesrion-2a-final.pdf explains. Ask Scottish Power to correct this. If they don’t, send a complaint to the ICO.
Lukas says
Hi Sarah.As you advice I contact my gas/electric provider,and I will show their respond below.
I need your help as I still strongly believe that timing to get this defaults was wrong, please see below respond from them and help
—————————————————-
The reason for the credit defaults being applied against your name was due to the final outstanding balance of gas and electricity account for your former address not being paid, not due to arrears building up on the accounts. The electricity account was finalised to 27/09/2017 and had an outstanding balance of £331.08
The gas account was finalised to14/12/2017 and had an outstanding balance of £115.17.
I can see that no new contact details were given to us therefore we were unable to contact you in regard to your outstanding balances and this was the reason for the credit defaults being filed against your name.
I can see from the account you did not contact us until the 05/09/2020 when you queried about the credit defaults and you asked for a copy of the invoices for the accounts in question at which point you provided forwarding address.
Scottish Power remove off any outstanding debt balances on the accounts after a period of time if no trace of the person responsible can be found.
The outstanding balance for your electricity account was removed on the 14/06/2019 and the gas account was done on the 12/03/2020. This is why our customer service agents could not take payment for the accounts as the balances no longer shown on the accounts anymore.
However by Scottish Power removing the final balances from the accounts does not mean that the credit default is no longer applicable as the debt was not satisfied and not paid by you.
If you wish to pay these balances I would need to ask out customer services department to assist and investigate whether they can rebill the accounts to show the outstanding balances again as we do not have the access or skill set to do this in the Data Protection team.
———————————————–
Can you advice what should I do as I believe that took so long for defaults to take place and also finalising account that I haven’t pay for very long time …
Sara (Debt Camel) says
I suggest you talk to your local Citizens Advice.
I can’t tell from what SP say if they have been billing you after you moved out? Or if you ignored their bills while you were still living there? or if they have billed you very late for money you do owe? These are three very different situations and I think you need some help to dientangle this.
David says
I recently won a small refund from a bank due to a successful unfair bank charges claim.
In the banks response, they have provided some detail to me which suggests the amount of credit by way of loans and refinancing said loan after a short period of time etc, could have been irresponsible due to my circumstances at the time. The loan amount was more than my annual salary at the time.
The final balance I owed on that line of credit became SB in 2010.
If I was to make an unaffordability complaint, would that reset the clock on the debt please?
I’ve already won a PPI complaint in relation to those loans in question.
Many thanks.
Sara (Debt Camel) says
When was the loan taken out? How much did you borrow and how much did you repay?
Was it sold to a debt collector?
What happened with the PPI claim?
David says
Original loan was 12.5k for home improvements. Within 6 months I’d refinanced and in total with further refinancing up to 2004 it totalled 20k. i paid 11k off but then they stopped chasing. It was passed to a debt collector yes, but they too stopped chasing in 2010. I’ve not heard from them about it since. Just before the deadline I claimed PPi and won, they paid some off the account and returned the rest to me. The value of the PPi refund wasn’t enough to pay off the full balance so I’m unsure why I got some returned to me. I’m sure there’s still a balance of at least a few £k. Again no further chasing has occurred.
Sara (Debt Camel) says
To answer your question, yes making an affordability complaint will restart the clock on statute barring (as does making a PPI claim) BUT this doesn’t happen if the debt is already statute barred.
HOWEVER
you have repaid less than you borrowed. An affordability claim asks for a refund of interest – so far you haven’t paid any.
AND
you would have trouble with an affordability complaint about a loan before 2007, when the law changed and FOS started being able to look at these complaints. I haven’t seen one won from earlier. You can try but as you haven’t paid any interest, there doesn’t seem much point.
David says
It is already SB but that is a good point, didn’t think about it in terms of the payments made.
Thanks for helping so promptly.
Darren says
Hi
My ex wife is no longer living in this country but i was getting bills and demands from debtors being forwarded to my address by her landlord from when she was still in the UK
I haven’t opened any as i don’t want to be liable for any
I have had a bailiff visit but as i don’t know where she is apart from Cyprus i couldn’t be any help
That was over 6 years ago will those debts still be active
Thanks
Darren
Sara (Debt Camel) says
Unless you know the details of the debts and why a bailiff is coming round it is impossible to guess. If there has been a CCJ for example the debt will never be statute barred.
Replying to any callers that you haven’t seen her for years and you think she may be in Cyprus but you do not have an address seems a suitable approach for you. A hassle but not something for you to worry about – assuming that you were not jointly liable for any of the debts now being chased.
Stephen says
Hello over 20 year’s ago the bank took a house i owned back selling it , there was a short fall of about 11.000, at that time i was written off work with depression, young and foulish back then, i would now like to buy another house, would there be any records of this debt, ? would i be able to start as a first time buyer again,
Many thanks for any imformation
Sara (Debt Camel) says
You will need to make sure you do not apply to the same bank you originally had the mortgage from.
Also you need to answer questions honestly on the application – you are not a first time buyer.
Stephen says
Thankyou Sara, i would have replied earlier but this ended up in my jumk mail box, now one thing i don’t know is the Bank i took the mortgage out with as it was so long ago, any idea’s how i would find this imformation out ?
Sara (Debt Camel) says
If you have no records, I have no idea.
Stephen says
ok Many thanks again , have a great day
Mandy says
Hi Sarah. You have helped me before please can you help. A quick recap old Mbna account brought by Arrow global and now capquest chasing. In 2016 asked for a cca from Arrow global was not received Sent the request to capquest, as they started chasing, the statement of account wasnt right and I asked for a proper one which said I last paid in April 2015. I wrote and said it was statue barred, they sent another statement of a count with last payment date of june 2015 so they said it is not statue barred. I had sent a complaint too as they threatened to send someone round when they had not provided a correct statement of account. Anyway complaint not upheld, and the details in the letter is in correct. So, if I wait to reply on 3rd of june can I tell them it is now statue barred. I am currently waiting for additional tests for secondary cancer and I am going to contact the f o as they failed to correctly deal with the complaint. But please could you let me know if I can reply to them and say it is now statue barred Thank you
Sara (Debt Camel) says
Have you been sent the CCA agreement? or just the statement of account?
The problem is if you have been asking for a CCA then this is very likely to acknowledged the debt so statute barring is not relevant.
Mandy says
I have been sent the CCA in January. I asked Arrow Global for them to send it to me in 2016 but they didnt. Then Cap quest began chasing and miraculously provided it with no t’CS so they sent me those. The statement of account was not the same as Aroow Global had sent me in 2015. This is th reason I questioned them before as they said I had missed payments when I hadn’t. The one that capquest sent didnt have those missing payments but I didnt tell them that and it came from Idem. Which i never paid to them
Turns out Idem are part of Paragon which is why they have that. I have never admitted it, I just asked them to prove it. 6 years since I last paid is June 2nd. CAB couldnt look at the CCA. On Tuesday I should find out if the diagnose is terminal so wont be able to pay it anyway but I want to reply and try saying it is Statue barred. Just dont know where to go from here
Sara (Debt Camel) says
A loan does not automatically become statute barred 6 years after the last payment as the article above explains.
because of your health problems I suggest you contact Capquest, ask to speak to their vulnerable custoomers team, explain your health and ask them to write off the debt.
Mandy says
Ok thank you
Sam says
Hi, I have an old debt with Lowell from an old phone contract back in 2016, it says on my credit file the date of default was 17 August 2015. I haven’t received any letters regarding this not for a long time, I recently moved and have avoided registering on the electoral roll just for a few more months so I’m ‘off the map’ as such. I’ve worked hard past few years to sort my credit file out, CCJ and old debts etc. I’ve had no contact with them regarding this but I don’t want them issuing a CCJ with just two months left before the debt is statue barred, how would I know without contracting them acknowledging I know? Lowell Solicitors (they act as a different company then Lowell) contacted me a couple of months before a different previous debt was due to become state barred, again if it wasn’t already, but I paid that as their letters threatened a CCJ. I’ve moved from that address since so I wouldn’t know if they have contacted me their or not. Just some advice please, I’d hate for a CCJ to be slapped on my credit file literally a month before this debt is due to be state barred.
Sara (Debt Camel) says
how would I know without contacting them acknowledging I know?
If you aren’t getting your post redirected, you can’t do this. That is the problem with trying to stay “off the map”.
Andrew says
Hi I have an old loan over 10 years old that I failed to repay. I took this out at my parents address whilst living there. I haven’t made any payments for over 6 years. I have just found out my mother has been making token payments towards this debt for years because the letters were going to her house. How do I stand with this been statute barred as payments are been made not by me and without my knowledge. I dare not contact them as I understand this could reset the clock. Any help please
Sara (Debt Camel) says
Presumably the loan is no longer on your credit record? Has it been sold to a debt collector?
Andrew says
I can’t see it on my record. It’s currently with Cabot
Sara (Debt Camel) says
I suggest you talk to National Debtline on 0808 808 4000 about this.
If it turns out the debt is not statute barred – and that is not something I am going to guess at – than there is another possibility that could help, which is that Cabot may be unable to produce the CCA agreement for the debt, see https://debtcamel.co.uk/ask-cca-agreement-for-debt/.
Andrew says
OK thanks I will phone debtline on Monday
James says
Hi Sara,
Hope you are well, I am still having issues with provident(satsuma) it is sitting with Financial Ombudsman since October last year, my credit file is still showing at 6 months late, I raised a query with Experian who advised provident have said it is accurate but it should have went to default in 2017/2018. My understanding this will never drop off as it is showing 6 months late payment?
I don’t know what else to do as not getting anywhere with Financial Ombudsman or Provident.
Gloria says
My ex loaned my mother money in 2004. The agreement was that she paid him back when she sold the house( she did have it on the market for 3 years)
My ex and I split up in 2005 and after a few years I moved to my mums with my young son due to her failing health.
Again she tried selling the property with no luck and because she still had a interest only mortgage that was nearing its term we remortgaged in both our names.
A few months ago my ex texted me about the owed money saying because he’s lost his job he’s now able to get legal aid and he’s going to go after my mother to pay it back. No payments have been made and no written agreement was drawn up. Whilst I know it’s morally wrong not to pay him back, my mum doesn’t have any money and can’t pay him. Can he pursue this?
Sara (Debt Camel) says
You can’t usually get legal aid to help you get a debt repaid.
If you haven’t heard anything for a few months, he may just have been trying it on… also it sounds as though the debt may be statute barred. If he gets in touch again, talk to National Debtline on 0808 808 4000 and ask them what you should do.
AJ says
Hello,
I went bankrupt in August 2016 and listed my argos card as one of my debts to be written off. However it is still showing as defaulted and the balance owed of around £300. Why is this when it was included within the bankruptcy? Also the default date they have is for December 2016 am I right in thinking it should be the date of my bankruptcy order which is August of that year and that the account should have been closed like all the others that were included.
Many thanks
Sara (Debt Camel) says
Yes, they haven’t updated it correctly. See https://debtcamel.co.uk/credit-file-after-bankruptcy/ for what to do.
Pablo says
Hi. I am being chased for a catalogue debt on an account taken out by my ex without my knowledge. The account defaulted in Feb 2017. I asked for a cca which doesn’t show date or signature and is unreadable other than my name. I have sent electoral roll details and they are now asking for council tax bills. Should I make a full and final offer of a small amount or contest it?
Sara (Debt Camel) says
was the person you think took out the account living with you ate the time? Specifically if items were delivered, would they have been to a different address or your address?
Who is asking for council tax bills and why?
Pablo says
The person who took out the debt was neither on the electoral roll or council tax bill. I was about to move in the property where she opened the debt but wasn’t at that time due to renovations. I will be able to provide council tax bills for the place I was living if local authority keep records. She did have a different address, but she opened the catalogue (Next) in my name.
The debt agency is asking for council tax bills as proof of address
Sara (Debt Camel) says
if you can get the council tax bills then that may resolve it?
Pablo says
I thought that might be it. They want to start fraud action against my ex too, that is an avenue I really don’t want to go down, can they force me that way or can I say the consequences would be too severe??
Sara (Debt Camel) says
You can point out that you are only guessing it may have been your ex and you have no evidence that it was (assuming that is correct obviously).
Catalogue companies would not generally pursue a prosecution for fraud… and if there is no evidence…
You can report it as fraud to Action Fraud and say you don’t know who did it.
Pablo says
Yeah I’ll try that. Thanks for your help, I’ll let you know how I get on.
Aaron says
Dear Debt Camel
I have received a letter from a creditor, that has not been able to comply fully with my CCA Request. 2 years after sending them a proposed settlement offer, which they never replied to, they are writing to PROPOSE, a Reconnection VISIT. The debt is for £100, been sold to several Collection Agencies. I cant pay them and told them this, how can i keep them from VISITING me at home???
Sara (Debt Camel) says
Did they say 2 years ago that they cannot produce the CCA agreement or did they basically ignore it?
SAM says
Hi Sara,
Thank you for your advice. Yes, I suppose its good advice from Debtline thinking about it.
Can Hoist apply to the court again to enforce this CCJ? Is this common?
Meanwhile, I will write to the Court about it. Do you have a template I can use for this please?
A few questions and comments if you can bear with me so that I know the best way to deal with this in the right way?
1. should I also write and ask Hoist Finance, even though have refused to provide any information about it? Is there a template for this too?
2. It would have been nice to get rid of it. I can propose £5 pounds or a token payment based on my situation. Would it work, as they are claiming £9,821.70? or I was thinking of offering a small amount, say £500, which is manageable, in full and final settlement
3. And, at what point do make the offer and How should I write to them – (is there a template I can use?)
Thank you for your patience.
Kind regards
Sara (Debt Camel) says
Sorry no template. It may be easier to phone the court, although you may have to hang on for a while. Just give the facts you know, say you would like a copy of the judgment.
I would do that first, then take everything from there. National Debtline can then advise on whether this is enforceable and whether you should “vary” the judgement so you can pay an affordable amount each month.
SAM says
Thank you so much.
Meanwhile, any suggestions what I should say to Hoist as they have given 30 days to respond.
I’ve been looking at my income and expenses, Looks like I will have around 25.00 per month available to pay them. In your experience how is this go down? What’s your thoughts on that?
Sara (Debt Camel) says
Well it should take you less time than that to find out the CCJ details so I suggest you ignore them until you have and you have got a plan. One step at a time….
SAM says
Thanks you Sara.
Will get on to it on Monday. Meanwhile, can I just ask what do Hoist mean by this in their reply:
“Please be aware that County Court Judgement (CCJ) has been secured against this debt; therefore your liability has been established for the debt.”
Is because of the CCJ or because I’ve written to them and it may have reset the clock?
Thanks
Sara (Debt Camel) says
If there is a CCJ then the debt never becomes statute-barred. if the CCJ is more than 6 years ago however it may be harder or impossible to enforce the CCJ.
SAM says
Hi Sara,
I called the County court. They couldn’t find the case on their register with the case number I’ve been given. They do not keep records of cases more than 6 years old.
And on the question of enforcement, like you said above, it would be very hard if not impossible for them to enforce the order as its over 6 years old, however, should take legal/professional advice for my own peace of mind.
National Debtline also said the same ting that it would be very hard for them to enforce this.
So, any advice on how should I proceed from hereon in? And how I should respond to Hoist about this, or can I just ignore it.
Thanks for all your time, you’ve been a great help.
Regards
Sara (Debt Camel) says
So there are several things you could do:
– ignore Hoise and see what they do
– tell Hoist you don’t have any details of the CCJ and can they send you a copy of the claim and the judgment
– tell Hoist it is over 6 years so they will have to go back to court to enforce the CCJ and you will challenge that
– offer hoist a £1 a month and send then an Income & expenditure statement showing this is all you can afford.
I can’t advise which you should do. National Debtline can talk through the pros and cons – tell them you cannot afford legal advice. they can also help draw up an income & expenditure form if you want to make an offer of monthly payments.
Kelly says
Hi
I’m not sure if the above applies to me as my debts are over 9 years old and I still pay £1 token payment on them. I’ve had default letters from day dot?
Also, sleeping debtors lie. I got divorced and changed my name. All linked on my credit filed, I’ve not informed them, just not got round to it even passport is in old name. Should I risk waking them up? I’ve also moved but have post divert set up and again not got round to informing everyone.
Im terrified of getting CCJs as I could loose my job. I disclosed all defaults to my job even though not in credit file anymore. Would my debtors have to ask court for permission?
I would like to stick to £1 payments as well as I don’t include my partners money as no debts are his or in his name therefore his money is his not mine and almost all bills are in my name, and still works out as token payments affordable only. Having had my ex husband up and leave I’ll never put myself in that position again. My home my money my responsibility.
Sara (Debt Camel) says
If you are making payments to a debt it will never become statute barred unless it was already statute barred back when you started making these £1 token payments – it doesn’t sound as though that is relevant to you.)
Should I risk waking them up?
To say what? You can’t say the debts are statute barred because they aren’t.
It is however possible that some debts are not enforceable because the creditor cannot produce the CCA agreement. This only applies to loans, credit cards, catalogues – not overdrafts, mobiles, utility debts etc. See https://debtcamel.co.uk/ask-cca-agreement-for-debt/ for more about this.
I’ve also moved but have post divert set up and again not got round to informing everyone.
It is expensive to get mail diverted for long periods – it might be better to tell the creditors and use the money to repay to the debts.
Im terrified of getting CCJs as I could loose my job.
What is your job?
Would my debtors have to ask court for permission?
Permission to submit a claim to the court? No.
You will need to defend a case if one is started. It isn’t clear on what basis you can defend the case – possibly lask of a CCA agreement for some debts but it won’t apply to all and it is MUCH simpler to ask for the CCA agreement before the creditor starts a court case than to defend one.
The big problem for you is if a claim is submitted and you don’t get the court papers because they did not go to your address – then there will be a judgement “in default” if you do not submit a defence. The timescales for doing this are very tight.
I would like to stick to £1 payments as well as I don’t include my partners money as no debts are his or in his name therefore his money is his not mine and almost all bills are in my name, and still works out as token payments affordable only
Is your partner not contributing his fair share of the bills? A creditor would not think that was fair, nor would a court.
Kelly says
Hi thanks for the quick response. They are debts from my previous marriage and I can barely get maintenance from him let alone have him support debts he hasn’t got his name on. I do not think it’s right my current partner pay towards my debts just as I wouldn’t pay anything for what he built up with his ex wife.
But yes he does pay for bills but I’m the main earner. My job involves having clearance checks etc. SC level.
Is a defence to a CCJ that you have been making agreed payments? Just curious.
I did think they were not going to barred I was just confused about the default notice bit.
Is it worth asking for CCAs? Won’t that frustrate them? I will go and look at that link thank you
Sara (Debt Camel) says
Is a defence to a CCJ that you have been making agreed payments?
No.
Is it worth asking for CCAs?
At the moment that is a diffifcult decision as you have no problem with carrying on making the £1 payments, so letting sleeping creditors lie you may feel is best.
But if a creditor wakes up, I suggest asking for a CCA agreement should be one of the first things you think of – do not let this get to the court claim situation.
Doing this, the only risk is that you don’t get the court papers and get a CCJ “in default” as you did not make a claim. If that is a huge problem for you it may be better to tell the creditors where you live… because you think a new Income and Expenditure form will still show you can only afford £1 a month.
Kelly says
Thank you. I just went through them and three of the seven I have are with Cabot and I’ve already given them my address and a recent finance sheet so I think I’m all good there.
Just another three (two with one!), two of the companies I haven’t heard from in years! Crazy! But I still make my standing order payments to them. So I’ll send them my address and deed poll name of change over the next few weeks. My postal direct runs out in October.
Sam says
Hi, so I have a debt on my credit file that is in default and the default date is 02/08/2015 – so it is due for being statute barred I believe? I haven’t made any payments and had no contact at all with the creditor. The account was for a phone contract and I know it was opened a year before that date. I received a letter in the post yesterday from Moriarity Law saying ‘we have been attempting to contact you, and have been giving this address as where your residing, we would like to discuss a personal and private matter, if this is you please could you contact us etc’. Very much worded so I call and catch my self out?
What should I do? I don’t want to just leave it and get slapped with a CCJ in the last two/three weeks of this debt being enforceable, do I contact them and ask for proof of this debt? Any help would be great.
Sara (Debt Camel) says
I suggest you talk to National Debtline on 0808 808 4000 about whether this is statute barred and your options.