Debt Camel

Answers to questions about debts and credit ratings - in plain English!

Statute barred debt – common questions

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?

The law in England says a creditor only has a limited amount of time 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”. This article answers the most common questions people have about it.

NB If you are making payments the debt will never become statute barred no matter how old it gets. In this case, this article isn’t relevant, instead read Can I stop paying this old debt?

Why does “statute barred” matter?

Stop and Dead End signs - statute barred debt - bad news for your creditors

The Limitations Act 1980 sets out the times within which a creditor has to take court action.

For credit cards, catalogues and most loans in England and Wales this time is six years. It starts at the point where the creditor has a “cause of action” – this means the point at which he could sue you. If you are paying a debt normally, you can’t be taken to court for it. So it is only when you have missed a payment to a debt that this 6 year period starts.

If the creditor doesn’t start court action within this time, the debt is not enforceable because it is “statute-barred”.

You may have heard this called ” time-barred”, that means the same thing. Sometimes it is called “status barred” because “statute-barred” has been misheard.

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. The Financial Conduct Authority’s rules about statute-barred consumer credit debt (loans, credit cards etc) are here.

How can I tell if my debt is statute-barred?

Unsecured loans and credit cards will normally be statute barred in England and Wales if:

  • it had been more than six years since you missed a payment; and
  • you haven’t acknowledged the debt in writing during this time; and
  • the creditor hasn’t gone to court for a CCJ for the debt.

If the creditor has written to you, or you have discussed the debt on the phone the debt should still be statute barred. What matters is if you have made a payment to it or acknowledged it in writing.

If you have reclaimed PPI, this is likely very to count as acknowledging the debt.

With a joint loan, the six years runs from the last point either you or your partner made a payment to it.  If you have split-up, you may think a debt is statute barred but actually it isn’t because your ex has made a payment to it.

The situation is more complex for overdrafts and any other forms of debt where there was no set repayment period in the contract – contact National Debtline for advice about these.

Determining the exact date on which a debt becomes statute-barred can be complicated, see this factsheet: When Does the Limitation Period Start Running?  Sometimes the exact date 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.

I suggest you call National Debtline on 0808 808 4000 and talk through your situation with them.

Secured debt – mortgage shortfalls

For a debt resulting from a mortgage shortfall, the time allowed in the Limitations Act is twelve years. Many lenders however follow the old Council for Mortgage Lenders code which is now incorporated into MCOB (Mortgage Conduct of Business Rules) which 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.

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.

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?

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, perhaps just a token £1 a month, then it isn’t going to be statute barred – the six-year limitation period starts again after the most recent payment/acknowledgement.

Sometimes this is called “resetting the clock”. Think of someone holding an alarm clock that will go off 6 years after you miss a payment. If you don’t pay anything for a year or two, the alarm clock ticks on, counting down towards zero, but then you make a payment. That doesn’t just stop the clock, it resets it back to the 6 year point.

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 acknowledgment 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.

Can I ignore a letter about a statute barred debt?

Are you absolutely sure that it is statute barred? If you aren’t certain, then you should probably write a “Prove It” letter to your creditor. This is worded so that it doesn’t acknowledge the debt.

If you are 100% 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.  Here is a template letter you could use:

Dear [Creditor / Debt Collection Company],

I am writing in response to a letter from you dated [dd/mm/yy], a copy is attached.

I deny liability for what you are claiming. In addition, I have not made a payment to this debt or acknowledged it for over six years. This debt is therefore statute barred and I will not be making any payments to it.

Under the Limitation Act 1980, you cannot take court action unless you can provide evidence of payment or written contact from me within the past six years. The Financial Conduct Authority rules state:

CONC 7.15.4 Notwithstanding that a debt may be recoverable, a firm must not attempt to recover a statute barred debt in England, Wales or Northern Ireland if the lender or owner has not been in contact with the customer during the limitation period.

CONC 7.15.8  A firm must not continue to demand payment from a customer after the customer has stated that he will not be paying the debt because it is statute barred.

If you continue to contact me about this debt, I shall put in a complaint to the Financial Ombudsman.

Yours sincerely, [name]

Can I ignore a Letter Before Action/Claim about a statute barred debt

This is a bad idea as this is your last chance to get this sorted without the hassle of defending 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.

What should you do if you get court papers about a statute barred debt?

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.  If you are unsure what to write on the defence form, phone National Debtline and talk to them.

Can I just wait for my debts to become statute barred?

If creditors haven’t contacted you for a few years, you may be hoping that they have forgotten about the debt, so you can get through to the six-year point. This may work, but it is common to find after a while that the letters start again, perhaps when you are just a few months away from the statute barred point. Find out more about this situation in No calls or letters about a debt for years?

If you still have money problems and have more recent debts that you are also struggling with, then you look at the bigger picture see A Road Map of Debt Options.

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.

Do tax debts or benefit overpayments or council tax arrears 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 Bureau.

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.

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.

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 on 0808 808 4000 who have Scottish experts.

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. But if you have a general question about statute barred debt, ask it in the comments below.

Updated 2018 – article extended and links updated

More Debt Camel articles:
why pay a debt that isn't on your credit record

why pay a debt that isn’t on your credit record

N1 court form crest

What to do if you receive a court form

How to find if you have a CCJ

How to find if you have a CCJ

Comments

  1. Hi, this is a great thread and have found some useful info
    I have not made payments on debts or had contact with any of my creditors for some 15 years. I believe I did have CCJ against my name but due to the length of time these have all subsequently fallen off of my credit report. I recieve letters from time to time with settlement rates etc but still have had no contact. Am I right that to enforce these debts they will have to go back to court and if that is the case I will get written notice of this?

    My second query is I have recently checked my credit report and found a CCJ from 2011 that is due to expire in Jun 2017. As I was unaware what this was for I contactected the court who advised that it was for water utilities ( for a property I vacated in 2006 and that my water was included in my rent, but no point In crying over spilt milk as due to the length of time I have no way of proving this). The court also advised it had been transferred to another court. As it is so close to being removed from my report is it likely that they will make a further judgement? do you think I should wait it out until Jun or settle the sum pre Jun to avoid a further judgment this is the only negative on my credit file and I could benefit significantly with this being removed.

    Thanks in advance

    Reply

    • Your first query – are you asking about enforcing old CCJs? Yes the lender will have to go back to court. Yes you should get a written notice, but that depends on knowing where you live… although a creditor who doesn’t know where you live isn’t very likely to do anything I suppose.

      The CCJ for 2011 – it won’t “expire”, CCJs never do. It will drop off your credit record. After there is one judgment there can never be a second one.

      Reply

  2. Hi,

    Back in April 2011 I defaulted on credit card repayment due to financial struggles. From looking back on my credit report, I think the last payment was made in September 2010. Since the default I have made no further payments, had no contact with the credit card company, or the dca who bought the debt. They have ocassionally sent letters about repayment which I have just ignored. When I last looked at my credit report (last month) the defaults were no longer listed on there. I have received an email from Experian this morning to say there had been a change on my report & the defaults have re appeared (one for the original CC company which states nothing is owed & one for the dca who bought the debt) with an “updated” default date of Jan/Feb 2012. I’m not really sure what is going on, can they do this? Technically the end of this month is 6 years from default date but it’s over 6 years since I last made a payment. I have been trying to build my credit score & this has severely put a dent in that.

    Reply

    • Are you saying this debt used to appear on your credit record with an older default date and the debt then dropped off after 6 years? What was the original default date?

      Reply

  3. Many thanks for your prompt reply.

    The original default date was 30th April 2011. The defaults had always been on my credit file. Last month when I checked though they had gone. Today they have reappeared, making a massive dent in my credit score. The default date is still the 30th April 2011 when I check but on the relisted defaults they have 2 new “updated” dates of Jan & Feb 2012. I’ve tried to add a picture but it won’t let me.

    Reply

  4. I owe my local authority £44.00 and wish for them to rehouse me. the sum I owe has just been brought to my attention and it is more than 6years old. am I legally bound to repay it? can they ask me to pay it?

    Thank you

    Reply

    • If you want to dispute this, then I suggest going to your local Citizens Advice and asking for their help. If this is the only thing standing between you and being rehoused, you may want to consider if it wouldn’t be simpler just to pay it though.

      Reply

  5. I have a debt from ten years ago which I started a payment plan and was keeping up with for ages until all of a sudden I noticed the payments stopped coming out of my account, which I did not cancel or stop myself. I therefore assumed I’d paid the amount back. Then out of the blue about 18 months ago another debt collector contacted me telling me I owed money on the debt, I asked for proof to be sent to me but never heard a thing after that phonecall. Now I’ve just received another letter from them about the debt which I have once again asked them to send proof but still nothing. That was almost two weeks ago, they gave me until Friday 21 to get back in contact after receiving there proof which hasn’t been sent, what should I do? Send the prove it letter so it’s in writing? I’m also very sure the last payment I made was over 6 years ago to the original debt collector, so is surely statute barred right?

    Reply

    • So far as I know, the 6 year limitations period for a PPI claim starts when you become aware you were mis-sold PPI. This could well have been later than the point at which you missed a payment to the debt.

      Reply

  7. Hi I have a credit Card debt in which I last paid in April 2011, since Dec 2016 I have had a company chasing the debt and they went to a business court to try and get the money back. I advised the court that I thought the debt was statue barred to stop any proceedings, the company chasing the debt has disagreed with this. I have made no contact with this chasing company so I would like to know if the debt is indeed statute barred or because they have made contact with me within the 6 years period that it is not statute barred. Thanks

    Reply

  8. I have just received a latter from HMRC claiming about 5 K for over payments in2005I wrote in about 2014 saying i disputed it it i told them on the phone about changes in my income at the time so passed it on to a debt recovery co told them, they say we have chosen to ignore them and will be sending one of the collectors round in the next few says. Can any one tell me if they know it is statute barrred. i separated from my wife 2 years ago she is claiming tax credits i am not i an unemployed could they recover it from her credits thanks

    Reply

  9. As far as I’m aware, a hmrc related debt cannot become statute barred. By law you have to pay anything owed to them. Believe me, I’m currently paying a debt to them from 2003. There’s no way out of this. Under same circumstances too, they kept paying me after I told them TWICE about my change in circumstances. Citizens advise can’t help with it either, I tried that, only thing they could suggest is making a payment plan.

    Reply

  10. Hi There,
    I had a default recorded in Nov 2011 for a credit card. I understand that this debt was later sold to a company that took me to court and I now have a CCJ recorded on my credit file from last year. I later found out that I have been a victim of fraud as a few credit cards have been open with my name including this credit card. I called up the company but they said that there is nothing they can do about it as the court has already made the ruling. Can a company take you to court for CCJ even after having a default recorded and still active. that means having an active default and a CCJ for the same issue. from my records this means that I have 11 years on my record for the same issue. Does the court consider the default time?

    Reply

    • I think you should talk to National Debtline about whether it is possible to “set aside” this CCJ if you can show you didn’t open the account and that it was fraud.

      But yes it is legal for a company to go for a CCJ after a default has been on your record for 5 years. The court takes no account of your credit record.

      Reply

  11. Hi, I believe I have a statute barred account. Last payment on the account was 2010. The original creditor has sold the account on and it now has its 5th different owner (DCA). I believe that it is 6 years from the last payment or ‘acknowledgement’ for a debt to become statute barred? But the DCA that owns it now says I acknowledged the debt in a letter in 2013. The letter that I sent does say “that I agree there is a debt although I dispute the balance which I have since 2010”. The letter I sent though was not to the original creditor, it was to the previous DCA owner of the debt. Is it still statute barred or have I reset the clock?? I have read that acknowledgement needs to be to the original creditor to reset the clock, not a DCA that has bought it?

    Reply

    • It doesn’t matter whether an acknowledgement is to the original creditor or a DCA, it still resets the clock.

      Reply

  12. Thank you….. so the actual wording on the letter I wrote was…. “whilst I agree there is a debt I dispute the balance and refuse to pay it in full”. Would this still classed as an acknowledgement? I’m agreeing yet refusing in the same sentence.

    Reply

    • I am not a lawyer but it looks to me as though you have acknowledged the debt – you could talk to National Debtline about this 0808 808 4000. Disputing the balance is not the same as disputing the debt.

      Reply

      • Ok so I’m clutching at straws here. Thanks for the number. Find it strange how the DCA at that time then sold the account to another DCA yet didn’t pursue me if I had acknowledged. Account seems like a hot potato. Where would I stand in court if I were to highlight that the account has been sold on 4 times whilst I have unassumingly ‘Acknowledged’? Effectively I have a acknowledged since 2010 yet I have not been vigorously pursued by anyone

        Reply

        • I think you are clutching at straws. The 2010 date is irrelevant if you acknowledged it in 2013, as you may have.

          The Limitations Act is a maximum time for a credit to take action, there is no obligation for a creditor to act promptly. There is no reason why a debt can’t be sold several times. There is no obligation for each new creditor to take action. They haven’t done anything wrong here. Sorry.

          You haven’t mentioned what the debt is. If it is consumer credit act debt, then have you asked them to produce the CCA agreement for the debt? See https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx

          Reply

  13. Thanks Sara for your help thus far. i have contacted the court and i have been emailed the claim form, filled and returned to the court. the court sent a letter of acknowledgement of my defense and that a copy been sent to the claimant. today i received a later from the creditor that my case is on hold as it is being reviewed and a copy of Directions Questionnaire (Small Claims Track) which they had filled and that i will be sent my copy directly from the court to be filled so that the court can then make decision from these documents.
    i have asked the creditor severally to prove/send me evidence of my last payment which has been my defense and up to date they are yet to get that to me.
    where do i stand now or way forward?

    Reply

    • As I said before, talk to National Debtline. Sorry, I can’t provide advice on an individual court case.

      Reply

  14. I stupidly rang NRAm today who sent a letter. They informed me that I owed 62,000 from an old northern rock mortgage from a home that got repossed bsvk in 2006.

    My credit report stated that it was settled in court.

    I now having worked hard to get my new mortgage they state I owe all that back. I have not received anything from that within that time period.

    It’s really worrying me. I know a PPi claim cake back in two years ago from them but as far as I was concerned it was all settled,

    They were so threatening on the phone.i am now worried sick.

    I gave them an old address as they stated asking financial info over the phone. They could of been anyone.

    Reply

    • “My credit report stated that it was settled in court.” Sorry, could you giv some more details about this?

      Reply

      • My experian report said it defaulted then it said back in 2008 it was satisfied or settled. I obviously had to wait years.

        The person on the phone said they had been calling my number which is untrue but not sent me any letters. He then asked what can I pay today.

        Reply

        • OK, so there was no reference to a court on your credit report – that’s good.

          Are you sure you were talking to NRAM, not a debt collector?

          Reply

          • No reference to a court at all.

            I’m unsure I rang the letter which was from NRAM he put me on hold for ages. He very rude demanded my financial status and to pay.

            He said he was going send me letters etc but I gave him my old address as it occurred to me I don’t know who this person is.

            He threaten to take my home away, left me with a very sleepless night.

          • OK, it’s just that you wrote “My credit report stated that it was settled in court.” so I was querying that.

            It’s a shame you didn’t do the sensible thing and go bankrupt back in 2006. And also that you made that PPI claim.

            However NRAM should not be behaving aggressively and threatening you, certainly not on the first contact for 11 years. I suggest you call National Debtline 0808 808 4000 on Monday and ask for their advice.

  15. Hi Sarah,
    I have an old Barclaycard debt, been chased by Robinson Way on behalf of Cabot, back in March they sent a letter contacting me that I owe this debt. I sent out the prove it letter from NDL site. Both organisations then sent a letter saying its not SB and provided a transaction list ( not on letterhead etc), showing payments starting in 2003 by direct payment, bank giro direct and then sporadic payments from 2009 and the last 2 were made in July and September 2011 for £15 and £10. Only details were amount and date and personal chq, nothing else. So sent out prove it letter asking for further details of bank, chq number and from whom (I did have a chq book many years ago, but not had one for about 7 years).

    Received a letter from Robinson Way, advising that cabot cannot find chq number and name etc, but they maintain their position its not SB. They have put a hold for 30 days and if not heard back will resume collection activity. They also added Cabot have sent a final response letter. Any suggestions on what I can do, I have no assets or property, but concerned about court action. As I feel they have not provided the payment was by the liable person

    Thanks

    Reply

  16. Hi, I recently got a letter (of a few) from Lowell solicitors informing me I owe money. First of all they have been sending me varying amounts from £80 to £500 so I thought it was a scam, now they’re sending official looking letters with court stamps on. I have replied saying any debt is from 2010 and is therefore statute barred.

    They replied to me with a bill, dated Sept 2011 for £100 where THEY have credited me £5 (new total £95). Obviously this falls out of SB bounds if it is true, but I have my statements from Sept 2011 and I never maid a payment. The last time I made any payment was October 2010, the ‘bill’ they sent me even states clearly on it ‘This account was closed in October 2010’.

    Please advise what I should do next, should I send them my statements or simply wait until it gets to court? If they had asked me nicely for the money a few years ago I would have oblige, however with all these court threats, bailiff threats e.t.c I think they’ve had their £100’s worth out of me in stress.

    Reply

    • If you have a paper with a court stamp on it, that sounds like a Claim Form. If it is, you have to enter a defence within the timescale allowed, which is tight. If you don’t, you lose the case because there will be no court hearing! See https://debtcamel.co.uk/court-claim-form/ and contact National Debtline urgently about what to do – that means today!

      Reply

  17. Dear sara,
    I have a ccj which is three years old, i understant it falls off the report after 6 years but what happens if one pays off a ccj in that situation? does it reset the clock and 6 years start from the date of payment as it is the case with default, or ccj is different? Thanks for your help.

    Reply

    • The CCJ will fall off after six years from the judgment date even if you pay it after three years.

      (Actually the same happens with a default. If you pay it after three years it still drops off after six years from the default date – paying it doesn’t make a difference.)

      Reply

  18. I have just had a letter from Prime Location Services saying that they believe I am somebody their client is looking to trace, but that I need to call them for them to be able to verify what it’s about, a quick google has led me to info on them also acting as debt collectors and them insisting on confirmation of the number of the house you lived on on such and such street previously before they will give you any info, I assume this is a tactic for them to confirm your identity as being the correct person responsible for whatever it is they’re trying to recover. The thing is, I’ve lived at my current address for 12 years and I have had no unpaid debts in that time or been in contact with any companies about any debts or made any payments on any outstanding debts. There was a loan and credit card I defaulted on when I was much younger but this would have been over 17 years ago and they never really came after me for it and I’ve not had a ccj in my name that I’m aware of. The only other thing that might have been put against my name was after I left my ex and moved out and she racked up a cable bill but I had called them already to transfer the account to my name and again they never chased me for it and that was also 15 years ago.
    So if you have any advice on what I should do next that would be great.

    Reply

    • Is your letter something like “I am contacting you as I believe you may be the person our client wishes to contact. Our trace team have made enquiries and have advised that your details have changed to the above address.” ?

      If it is, then I suggest you ignore it.

      If a debt collector sends you a letter referring to a specific debt that you don’t recognise, it’s usually best to send a Prove It! letter, not ignore it. But I see no reason for you to be concerned about this very vague fishing expedition. from what you have said, if there is a debt behind it which is yours, then it would be statute barred. And the debt collector is likely to be well aware of this.

      Edited: I have written an article about this https://debtcamel.co.uk/prime-location-services-debt/

      Reply

      • Hi, Yes, that’s exactly what it says word for word, they then provide some contact info and it goes on to say “Please contact us by either of the above methods and we will be pleased to verify our reasons for writing to you”

        Reply

  19. I would like a little advice. 12 years ago i received a loan of 3,500 pounds from an ex-employer. I have lost all the paper work. I have never made any repayments or received any correspondence (that I can remember). I have now been asked to repay the amount. I have argued it is statute barred. The ex-employer has now dismissed the debt collection company and is representing himself. Is there anyway that the debt is not statute barred?

    Reply

    • I can’t give advice on a court case – I suggest you phone National Debtline on 0808 808 4000. Or their webchat is very good.

      Reply

  20. Hi , I had a letter from nation wide saying that they made an error on one of my balance statement from my defaulted loan that i am in arrangement with. They said because of the error they will not take legal action to recover the debt but they said the default is still active and the payments are still due. They said they were going to put a notice of correction on my credit report saying , “the creditor deems the debt to be unenforcable” therefore do i still need to pay this loan as they cant take legal action. Also how will this effect my credit and how long will it show for on my file and what effects will it have on me if i stop paying?

    Reply

      • the default was 18 months ago and still shows on credit file and balance owed of £18,000 which i pay £70 month through DMP. I was only informed of the error and the unenforceable bit a few months ago. default date 5/7/16

        Reply

        • The debt will drop off your credit record in June 2022 whether you pay it in full, have paid off some of it or you don’t pay it at all.

          If the debt is unenforceable, you can stop paying as they can’t take you to court.

          How large are the other debts in your DMP? Do you have a house with a mortgage? Equity?

          Reply

  21. that is 50% of my debt ; the rest is £19000 and do not have house ; mortgage just rent can i email you copy of letter so that you can read it yourself

    Reply

    • So how long would it take you to pay off the other 19,000 if you don’t pay anything to Nationwide?

      Reply

    • about 6-7 years max.

      I am currently with Stepchange.

      Where can i get confirmation that i do not need to pay nationwide as this will half the debt and number of years.

      thanks

      Reply

      • You can show it to StepChange – if the letter says the debt is unenforceable then that means they can’t take you to court. So you can stop paying.

        Reply

        • hi sara , following on from this unenforcable debt mentioned to you (above) last year i stopped making payments and stepchange agreed about 3 months ago , i am now being chased by a debt collection agency as nationwide have sold the debt does this mean the debt is still unenforcable and they still. cannot take legal action.

          steve

          Reply

          • Selling the debt doesn’t change the legal situation. I suggest you reply to the DCA that Nationwide have told you the debt is unenforceable and you do not intend to make any payments to it. Enclose a copy of the letter from Nationwide.

  22. Hi there i had a car from welcome car finance in which i defaulted bk in 2004 the took the car bk and sold it for the money against the loan i didnt pay any outstanding balance and years later they had sold my debt to another company can i claim my ppi as the debt was sold so they wont take any money from me

    Reply

    • You can claim PPI but there is a chance it will be set off against the old debt, even though it was sold. It’s worth a try but don’t use a claims company, otherwise you could be left owing them their fees even though you never got any money.

      Reply

  23. Hi there
    i have unsecured debt adding upto around £18,000 bank loand credit cards etc all unsecured. The original spends were way back in 2004/2005. I ignored them all i never knew about statute barred so i got a scottish trust deed with KPMG back un 2014 that would run until 2017. I paid it faithfully for a year and then defaulted so i assume that it will NOT be statute barred because i have acknowledged the debt is that correct xxx

    Reply

  24. Hi,

    I’ve recently received a letter from Mortimer Clarke Solicitors, for a debt on a current account which was terminated on the 03/09/2010. This is according to their letter. (7 years)

    After reading through everything on here and other websites, i would assume it’s statute barred, however, in the letter it says their client ( Marlin Europe Ltd) issued a claim against me on the 16/10/2014 and the claim form was sent to my address. Which I can’t recall every receiving.
    And if I contact them they would be willing to settle without court action.

    I know I have no CCJ’S against my name. I have had a previous CCJ from a court and I received the relevant paperwork but never regarding this debt. I’ve checked with the registry a few months ago and no current CCJ’s, but does this mean it is statute barred or does sending me a claim form mean they have started legal proceedings within the 6 years.

    Thanks in advance
    Ash

    Reply

    • hi Ash,

      Claims don’t usually just get suspended unless you defended it. If you didn’t put in a defence, then a judgement would have been given against you “in default” as you hadn’t responded.

      I suggest you reply denying that you ever received a claim form for the alleged debt (so you aren’t actually admitting the debt), ask for a copy of it and an explanation about what happened to the court case. You could add that that the alleged debt would appear to be statute barred.

      Reply

  25. I have an old loan which is now over the 6 years since making last payment. It’s been sold to DC but they just send me letters with no real reason to pay it. I have checked my credit file and although the debt is over 6 years it says it will drop off July 2018 ( I assume this Is 6 years from default) as the debt is now SB can I get it removed or do I have to wait for it to drop off which will be roughly 7.5 years after making last payment?

    Reply

  26. I had personal loan with defaulted in 2005. I paid small sums until Jan 2011 and then stopped payments. The Debt was sold in 2013 to Cabot and I never responded to any of their letters. They commenced court action in 2013 and I put in a Defence stating I am unaware of the Debt and sums they referred to in the Claim (stated I did not have a known Debt with Cabot) I subsequently received a number of letters, quarterly, confirming they were obtaining the relevant paperwork to verify the claim. A year past without any document being received. The Claim was then stayed by the Courts in June 2014. I have not heard anything since this month ( Sept 2017). I have never contacted Cabot direct or the original creditor since Jan 2011 and have stated I do not acknowledge the Debt in Court papers. This is over 6 years and they are now stating the Debt has been passed back from their Solicitors and I need to pay – would this be classed as ‘ Statute Barred’ Now?

    Reply

  27. I received a County Country Claim in January 2017 for a car loan taken out in 2009. It said I owed a sum in excess of £8,000. I maintained regular payments on the loan until my personal circumstances changed and I stopped making payments in May 2012. The car was then repossessed. I heard nothing further from them other than a letting saying the vehicle sold at auction & an amount of £? was repaid to my account. I was therefore unsure what to do. I returned the acknowledgement of service and filed a defence stating the facts, as I recalled them. I heard nothing further until I received a letter from a solicitors at the beginning of the week (8 months later) enclosing what they purported to be copy letters sent to me during a period December 2015 to December 2016 stating my debt had been assigned etc. etc., none of these letter were ever received by me, some were addressed to a previous address where I have not lived for 2 years. They are urging me to retract my defence to allow them to lift the “stay” and go back to Court. Should I do this or should I continue to defend my position? They have not produced a copy of the original contract, which I believe the Court need to enable them to enter judgment-is this correct? I am trying to improve my credit & to receive a CCJ now in respect of this debt would be the last straw. I am already repaying several debts and my disposable income is insufficient to warrant what this company purport is now due and owing to them.

    Reply

  28. Hi link financial have been chasing me for over 8 years for a student loan taken in 1995 no payment or deferment has been made since 1999 no contact has been made in writing since this date by myself ,I understand this is an old style loan account student loan so is not taken from wages or on file. Every year I get a statement asking for payment I own my own house and are concerned one day in the future they may go for a charge to secure the debt. Do I just keep ignoring letters each year or do I send statute barred letter to end matters.

    Many thanks for a reply

    Alan.

    Reply

    • These sound like “old style” student loans. National Debtline say (https://www.nationaldebtline.org/EW/factsheets/Pages/time-limits-for-recovering-debts/statute-barred-debt.aspx) “The cause of action (when the limitation period starts running) for old-style student loans, is usually when the loan became due for repayment in the April following the conclusion of your course. However, if you asked for it to be deferred within the six year limitation period, this would have restarted the limitation period.

      So that sounds as though the debt is indeed statute barred, which would explain Link Financial’s laid-back approach to collecting it. The debt still legally exists even though it is statute barred and sending an annual letter reminding you that you owe the money would probably continue even if you do send them a statute barred letter.

      The loans will be written off after 25 years from the last loan, see https://www.nationaldebtline.org/EW/factsheets/PDFs/42%20EW%20Fixed-term%20student%20loans.pdf.

      They can’t get a charge on your house without first going to court for a CCJ. Before they do this they would have to send you a Letter Before Claim (see https://debtcamel.co.uk/letter-before-claim-ccj/), at which point you could point out it is statute barred.

      I can’t see much point in sending them a statute barred letter. If you want to, I suggest you talk to National Debtline first to be sure of your ground.

      Reply

  29. Hi,

    My defaulted credit card debt (from 2015) is actually at an old address that I no longer have access to.
    I don’t have the account number either.

    If I write to the issuer simply to update my address details, giving only my previous address and current one and signed by me, (so that I can then see whether it is being pursued or not, as the letters will then come to me), will this constitute ‘acknowledgement of the debt’?

    Thank you

    Reply

    • Was 2015 the last time you made a payment to this card? Does the debt show on your current credit report?

      Reply

  30. Hi can anyone please help..I’ve recently had letters from global recovery for 2 accounts from lloyds a credit card and also a small loan.these are from over 17 years ago..the recovery firm are hounding me am I still having to pay these 2 debts after so long even though I’ve heard nothing for about 15 years?to be honest I’d forgot about them..thanks in advance.

    Reply

  31. Please can someone advice me about this please.

    I operated a credit card on which I owed about £5200 (with a £7000 limit). The credit card company, due to defaulting around 2010, sold the debt to a third party in March 2015 and marked my credit file as settled. The third party then contacted me shortly after taking over the account and recorded the default date as March 2015. On realising this, lately, I contacted the credit card company and asked that the original default date is confirmed. This was confirmed as 15 December 2010. Whilst willing to pay the debt over time (In fact, I have an ongoing repayment plan in place with this third party company), the new default date implies that this debt would stay longer on my file. I’ve reported to two credit agencies and have asked them to investigate this and have the date reverted back to March 2015. Is the new default date of March 2015 right or is the third party company expected, by law, to stick to the December 2010 original default date.

    Thanks, Oliver.

    Reply

      • Thanks Sara, that’s super fast. I’ve just contacted the debt purchaser and was told they would get back to the CC company to confirm my original default date. If this is eventually effected and corrected, how is it likely to impact upon my credit file whether or not the debt is paid up. I am paying though and it would take a few more years ti clear it out given my current financial circumstances.

        Thanks.

        Reply

        • If (or rather when!) they correct the default date to be in 2010, the record will drop off your credit file immediately. From this point it doesn’t matter if you pay it slowly, pay it in full, offer a smaller amount as a full & final settlement, or stop paying… the debt itself will never reappear on your credit record.

          BUT it’s good to get it settled because that prevents the creditor going for a CCJ, which would wreck your credit record for another 6 years.

          Reply

          • Hi Sarah,
            Many thanks for your wise counsel and expertise. After making contacts with the Credit Card company, they have deleted this account from my credit file and asked the third party company who purchased the debt to get the debt deleted off my file. They too have done the same and my score is looking great now. However, the 3rd party company is currently chasing me to review my payment which I have been paying steadily but both unable and unwilling to pay more as I can’t afford to pay more than I’m currently paying. I haven’t missed the token payment in the last 2-3 years but it seems they are pushing that I pay more. What can I do?

          • Have the asked you to complete an Income & Expenditure sheet? That’s usually the easiest way to show you can’t pay any more.

  32. Hi Sara,

    I have a debt from an abandoned overdraft that I have been avoiding for years out of shame and not knowing what to do. I signed up to view my credit rating and I was able to see the see that looks like it was sold to a debt collection agency in 2012. It says that the account was opened in September 2006, and account settled in February 2012 for a total of just over £2.5k.

    This debt will fall off of my rating in Feb 18. It was suggested that I should contact the debtor to prove that it is Statute Barred. I believe I stopped paying into this account in 2011 but on your website it mentions that overdrafts are different. I am concerned that if I contact them, they will have proof that it is not Statute Barred and then challenge me with a CCJ. This default has not been updated on my credit file since August 2015 too.

    I am concerned about how I could pay this back and what the best approach would be. I also don’t know if I should contact them unprompted. However I am also scared that if I do nothing I may recieve a challenge to a CCJ in the next few months ahead of February 18.

    What would you suggest is the best logical approach to this? If it isn’t statute barred, how would I best approach paying this off without a CCJ?

    Reply

  33. Hi I have a debt that has been sold to a debt collection agency, I took a loan out with provident and due to health issues and bereavements I never made any payments since I signed the agreement (I’m not proud of) on my credit report the start date is 12/08/11 And date of default is 14/03/12 my questions
    Does the statute barred start from 12/08/11 or the default date 12/03/11 baring in mind since the start date I’ve had no contact a knowledged or anything so haven’t made one payment?
    And is the accountil start date the start date with the collection agency or the date the organ al contract was signed?
    I’m just scared as these people are bullies as I’ve contacted them recently to settle a different ccj (witch they milked and added interest and were snakes about it) with the same people I need to know cause it might make them look into my record and they might think we’ve got payment for this one so let’s take him to court again I’m fessing up and trying to get myself clear and turn my life around as my health isn’t good at all! So I’m not trying to hide or get out of paying much apreciation for your help on this

    Reply

    • can I suggest you talk to National Debtline on 0808 808 4000 about this? Doorstep lending such as Provident isn’t always straightforward.

      Also talk to them about the interest that was added onto the CCJ you had – although this may have been correct, it’s worth taking advice about as often it shouldn’t happen.

      Reply

  34. Hi I hope you can help I have a statute barred debt that I haven’t acknowledge or payed too for well over six years, the other day I got a letter from a solisiters saying becouse the debt was sold on on 2013 it counts as payment from myself, is this true?

    Reply

    • No it is a legal nonsense. Who is this solicitor and who is the current debt collector? Can you quote the exact words they have said? Also what type of debt was it?

      Reply

      • Sorry for late reply it was part of a failed IVA , the exact wording is as follows
        Upon reviewing our clients records we note that this account was previously included in an individual voluntary agreement which failed, however a dividend of £973 was received by our clients predecessor on 20 November 2013 which is within limitation and a clear knowledge of the debt
        The solicitors is Howard Cohen , I believe it was an unsecured loan from well before 2009

        Reply

          • I can’t remember it was around 2005 I defaulted the IVA started around 2009 but I couldn’t pay it so it failed around 2010

  35. Hello. Thank you for such an informative website. I have a statute barred secured debt. It was from a private person and not an institution. Although still alive they have not contacted me. I contacted them once and they said that their solicitor had died and the paperwork was all lost and that they don’t have any paperwork regarding the terms of the secured loan and so they were just going to wait until I eventually sold the property. Is there any way (other than negotiating with them) to get this removed? Many thanks

    Reply

    • A secured debt will never become statute barred. The article above mentions 12 years for a mortgage shortfall – this used to be a secured debt but after the sale of the property it is now unsecured.

      Sorry the only thing is to negotiate with the creditor.

      Reply

  36. Hi I got totally out of the blue last wk a legal aid letter, saying my legal aid certificate was revoked in April 2011 and now I have to pay the bill. This is the first I have heard of this, massively shook me up. Is legal aid statutory barred debt, now it’s 6.5yrs ago ?

    Reply

    • You need some help to look at this, not just whether it is statute barred (it may not be, I don’t know) but also whether the size of the debt is correct and how to challenge it. I suggest going to your local Citizens Advice or a Law Centre.

      Reply

  37. Hi – I received a letter recently from Cabot out of the blue for a debt dating back to 2008, as no payments had been made for 9 years I wrote to the company stating that this was now Statute Barred and shortly after received a letter from Capquest (a different company but regarding the same debt) stating a CCJ had been issued in 2009 (no payments had been made since 2008). Anyone know where I stand with this as I wasn’t even aware a CCJ had been issued against me as I had moved house in 2009. I don’t know how to reply to the second letter mentioning the CCJ as I say I wasn’t even aware of it and unsure of the legalities any help would be appreciated.

    Reply

      • Sorry the late reply Sarah it was for a credit card. On my initial letter I asked for proof of stating statute barred but none has been sent but now they have mentioned a CCJ I am at a loss as to what to do or how to respond. I have never received the CCJ as I moved address. Is just need to find out my position really and how to respond, I was going to ask them to send through the original credit agreement and court papers but I dont know if thats the right thing to do. Would appreciate any advice.

        Reply

        • CCJs never become statute barred. BUT before the court agrees that a CCJ over 6 years old can be enforced, the creditor has to show that there are some unusual circumstances why it didn’t take action within 6 years. The more time goes on, the less chance there is of a court agreeing – after 8 years this is extremely unlikely!

          It is a good idea to start by asking for proof of the CCJ. You could say that Cabot never mentioned a CCJ when they contacted you about this debt a few months ago, you have never seen any court papers – if you had you would have defended the case as you have no recollection of the alleged debt – and you have never seen a CCJ on your credit record or you would have queried it.

          You could add that if there is a CCJ, then you understand that a creditor has to return to court to get permission to enforce it after six years.

          Reply

  38. Hi I wonder if you can help. My husband has an old Sainsbury’s credit card. He stopped paying the card in 2013, and has a registered default. He has made no payments or acknowledgment about the debt since, no calls or demands etc. Cabot Financial are now on his case, threatening to proceed with a CCJ. My question, is there a time limit on when a creditor has to apply for a CCJ in the same way there is for a default? I.e. The default is now 4 years old, could Cabot proceed with a CCJ now and reset the 4 years?

    Reply

      • Hi Sara,
        Thank you for the reply. So a company doesn’t have to proceed with a CCJ within a certain time frame like the do with a default? They can action a CCJ at anytime? I.e. Wait till the end of the 6 years for the default and then CCJ meaning the debt affects his credit file for 12 years not 6?

        Reply

        • They do have to go for a CCJ within a certain time – 6 years. And if they get the CCJ, that then wrecks your credit record for another 6 years, even after the original debt drops off.

          If your husband doesn’t want a CCJ he needs to look at his other options:
          – making a payment arrangement for this debt
          – could he (or a relative) offer a partial settlement to it?
          – look at debt options such as a DMP or insolvency if he can’t repay this in a reasonable time or also has other problem debts.

          Reply

  39. Hi Sara, could you please advise. My last payment towards Halifax credit card’s balance was in November 2011, it was defaulted in April 2012. I haven’t heard anything from Halifax since but in September this year I started to receive the letters from debt collectors. The last letter I received yesterday includes an information sheet and a reply form. From the information on this site I understand that I need to tick box C ‘I don’t know whether I owe the debt’ as I believe the debt is a statue barred by now. What other sections I need to fill in? Do I tell them that I need a credit agreement from them? Thanks.

    Reply

    • I don’t think you can be sure this debt is statute barred at the moment. Talk to National Debtline on 0808 808 4000 if you want to discuss this.

      This article looks at what to do if you get a reply form https://debtcamel.co.uk/letter-before-claim-ccj/. As that says:

      – if you are not sure exactly what your defence might be, tick Box C for more information and ask for a full Statement of Account and the written agreement for the debt.

      – Important: if there is any chance at all that your debt is close to being statute barred, you must NOT tick Box A and be careful on the Reply Form to refer to “the alleged debt” not “the debt”. Otherwise you may be acknowledging the debt.

      – You should also complete Box G “I intend to get debt advice about this debt and my budget. I can’t do this until I have received the information I am asking for.”

      – and Box I asking for “A copy of the written contract for the debt; A full statement of account, including details of all interest and charges included on the outstanding balance of the debt, explaining how they have been calculated, and any payments already made toward the debt; a calculation of the interest claimed; the annual or daily rate of interest; a description of the nature and amount of any administrative charges included in the debt; a copy of the notice of assignment of the debt.” (put “alleged” in front of all the references to debt).

      Reply

      • Thank you Sara. The form I received is standard one exactly as one I can see via Debt Protocol link on this site, it quotes “the debt” everywhere and not “the alleged debt”. Do I need to add “alleged” by hand to the existing “debt” wording or it only applies to my own answers? Like “I intend to get debt advise about this alleged debt…” and in the information request in pre-populated boxes? Is it safe to sign the form or should I print my name only?

        Reply

  40. Hello,

    I’m wondering if you can help. I took out a joint loan of £20,000 with my ex partner for home improvements. However, we split up, sold the house and now have a £20,000 loan to pay. The opening and default balance shows at: £20, 729. The default date was 25/07/2014. My credit report is showing defaults but the amount under each month is £20,335 – not sure why this is?

    I know my ex will not pay but I don’t know what the best thing to do is. I have ignored numerous letters. The loan has now been taken over by Cabot Credit Management.

    What do you advise I do?

    Reply

    • “My credit report is showing defaults but the amount under each month is £20,335” I suggest you ignore this odd number – it’s not very wrong and there is nothing to gain by trying to get it corrected.

      This debt is a long way from being statute barred. There is not much hope you can continue ignoring letters about it for more than two years.

      Do you have any assets – savings, investments, car that isn’t an old banger? Is there a friend or relative that you possibly provide you with a few thousand to try to settle this loan? Have you looked at whether you had PPI on this loan or on other debts?

      Reply

  41. Hi Sarah
    I have been contacted by a DCA regarding an old Dubai debt. If uk law applies its statute barred but UAE law has longer statute of limitations, 15 yrs. do you which applies? Is there anyway to correspond with the DCA without resetting the ‘clock’?
    Tobe

    Reply

  42. Quick Question,
    I wanted to know if I ask a company to look into PPI for me in my married name, does this or will this have an effect my maiden name as well?
    well over 20 years ago I had a lot to bad debt, I do not want this to be dragged up and reading the comments above I think this is the right thing to do, however if they just look at items that I had in my married name would it bring up any unwanted history?

    Thank you.

    Reply

    • I wouldn’t worry about 20 year old bad debt – as the article above says, it will be statute barred. But if you want control over what debts you ask for PPI to be reclaimed on, the best thing is to make the claims yourself – this is a good idea anyway as Claims Companies can’t do anything you can’t do – there is no secret way they can find out what PPI you had or clever trick to making sure you get a refund. So read the MSE page https://www.moneysavingexpert.com/reclaim/ppi-loan-insurance and save yourself a lot of money!

      Reply

  43. Hi Sara,

    If i have a debt that is statute barred and i pay it off for a small percentage, am i able to claim back PPI on it and get the PPI back myself?

    Thanks Neil

    Reply

    • If a debt is partially settled, then a PPI reclaim MAY (but sometimes won’t be) offset against the “remaining balance”.

      Reply

  44. Hi
    I had a credit card with Opus some time ago and paid off in full July 2005. I carried out an SAR with the company and it shows this. I contacted them in 2013 regarding PPI for that period and was told that any payment that was due was paid into said credit card account and there was £85.00 outstanding. Of course I disputed this and they provided information showing the Credit Card had been used after June 2005 right up to December 2005, maybe later i’m not sure, New Cards were sent to and spent from the address I no longer lived at, last contact from them feb 2013 providing me with SAR details. Is this statute barred now because I did not owe the amount and have confirmed i did not and can I claim back the PPI.
    They have never acknowledged whether criminal proceedings were brought against the owner of my previous address or whoever used the card, actually they didnt respond at all after sending me the information.
    Am i just opening up a can of worm again?

    Reply

    • Whether or not the balance on the card is statute barred is irrelevant if you can prove that it was not your debt. Even if a debt is statute barred, if there is a PPI refund it can be used to offset any balance still owing so this isn’t going to help you at all. What matters is that it was not your debt.

      But it sounds as though they did pay a PPI refund before 2013. If you wanted to dispute this, saying that it should have been paid to you, you should really have done this at the time as there is a time limit of 6 months to take any complaint to the Ombudsman. I think you may find it difficult to take up this complaint now so long afterwards.

      Reply

  45. Hi Sara

    I have some credit card debts, some with original lender and some that have been sold. 2 questions

    1, I have never acknowledge the debts, but I have sent them emails saying I can’t deal with it at the moment because of my state of mind and to put account on hold, does this change when the 6 years is running from.

    2. If I ask them to send me a copy of the Credit agreement, does this reset the clock to start the 6 years again?

    Thanks in advance
    Joe

    Reply

    • 1. Possibly, indeed probably, but it would be up to a court to decide on the basis of the wording you used. It may be wise to assume that you have reset the statute barred clock here.

      2. Again it would depend on the wording.

      How old are these debts? When did you default on them?

      Reply

      • Thanks for such quick response

        The debts are around 3 years old and the last default is December 2016.

        Lowell’s wrote regarding a mail order account saying

        “I would like to confirm that we decided to close account xxxxxxx as a gesture of goodwill, accepting no liability.

        Please be aware that the respective defaults on your credit file which relate to these accounts will not be updated to show that the accounts have been closed. This is because we have closed the accounts on compassionate grounds.

        Please be aware that the accounts will not be sold on to any third party.

        If you would like to continue making payments towards these accounts, resulting in the default balances of the accounts being updated on your credit file, please notify us of this and we will arrange for the accounts to be re-opened. ”

        Is there any benefit to making a payment or even making a F&F?

        Also Nationwide wrote saying that the loan I had with them is Unenforceable but the loan is still in default and payments are still due and that Moorcroft are dealing with it.

        Should I know totally ignore them?

        My plan is to ask for agreements from all of them and ignore any that are unenforceable and make F&F to the rest as my parents can help me out a little. The issue is if I assume that all are valid debts the maximum they can help with would be 15%, will this be a waste of time?

        Reply

        • I assume your aim to improve your credit score? Getting these debts settled will not improve your credit score. And even if the CCA documentation can’t be found, the defaults won’t be deleted.

          It sounds as though Lowell’s aren’t going to contact you any more for the debts and Moorcroft on behalf of Nationwide will just send you a polite “would you like to pay?” letter every so often. These debts can be safely ignored, there is no benefit to you in repaying them UNLESS you want to be able to get a mortgage in the next few years. But that sounds pretty unlikely so I suggest you don’t bother with them – saves you hassle and saves your parents some money.

          Reply

    • Thank you Sara

      This has been so helpful. I will try and make this my last question, before you get fed up with me.

      I am not interested in any credit for now. As I understand it all my defaults will drop off after 6 years so in 5 years everything will be back to normal.

      I still have a concern with the others, there are another 6 credit cards, totalling £80000, some have been sold and some with lenders. They are on hold at the moment as I have told them about my situation.

      My plan is to ignore them and when they write to me, ask them for the agreement from that I can see if any are unenforceable like the Nationwide loan, if they are then just ignore them. The ones that are make them an F&f of 15% and see how it goes. Is this the right strategy?

      For any that are unenforceable, will they hound me for years and years? will they sell on and will I get more grief the more they get sold on?

      Thanks again

      Reply

      • TBH with that much debt I would go for the simple option – go bankrupt. Either that or ask for write offs now and see how many agree. Otherwise I fear you will be looking at a pile of unmanageable debt in a few years time and wish you had bitten the bullet and gone bankrupt now.

        Reply

      • “The ones that are make them an F&f of 15% and see how it goes. Is this the right strategy?” well I have no idea what your situation is, so that’s pretty hard for me to say. Specifically why isn’t bankruptcy right for you? Do you have assets? If you have significant assets, then the creditors may well not accept 15%.

        “For any that are unenforceable, will they hound me for years and years? will they sell on and will I get more grief the more they get sold on?” Well they shouldn’t “hound” you. Just get good at sending a simple “this debt is unenforceable I do not intend to repay it” reply.

        Reply

    • Typically a month after your last payment – when the next payment failed to arrive. But it can depend on the T&Cs.

      Reply

  47. Hello.

    I have 2 very very old debts totalling £500 (8 & 9 years old) which are both statute barred. I’ve not heard a word about them for atleast 4 years but today have received a letter chasing payment. I’ve moved and changed name since too. The letter even states the debts are statute barred. Neither are on my credit files and don’t cause any impact to my credit score. There is no trace of them anywhere. Is there any way to stop this company (motormile) sending letters?

    Reply

    • So you have only had the one letter so far? You should reply to the letter saying that as the debts are statute barred you will not be paying them. Quote the FCA’s rule “CONC 7.15.8” which states that “A firm must not continue to demand payment from a customer after the customer has stated that he will not be paying the debt because it is statute barred.”

      These debts still legally exist (nb I am assuming you don’t live in Scotland.). MMF can continue to remind you about them occasionally, but if you get letters from them more often than once a year, I suggest you put in a written complaint to them about this.

      The debts should not reappear on your credit record.

      Reply

  48. Dear Sara,
    Summary of my situation:
    I’m from the UK, graduated from a UK uni in 2000. I had student/graduate accounts with RBS, Natwest and HSBC + credit cards.
    In 2002 I moved to China, initially planning to stay for a year, but have been living here ever since. I am now a permanent resident in China with no intention of moving back to the UK.
    I had a positive balance in my UK accounts up until 2004, after which I had some financial difficulties and started to use the overdraft facilities. I think there might be about GBP 15k+ overdrawn. To be honest I can not actually remember what I owe and to which bank credit card.
    My last withdrawal was from HSBC late 2004, I withdrew a large cash amount from a bank in China (if my memory serves me correctly). All of the withdrawals that put me into debt were done in China during 2002-2004. After that I have not had any contact with any of the UK banks.
    The correspondence address for the banks after I left the UK in 2002 was a friend’s UK address, to which the bank statements were addressed to “care of”. I lost contact with that friend in the UK and I have never heard anything from the banks nor my friend about this matter.
    I recently was moving apartment and found some old UK bank statements which reminded me about all of this.

    [large amount edited out]

    I have contacted all of the advisory bodies I can find (Step Plan, The Money Advice Service, Payplan etc) and none have been able to offer much advice for my situation. Also they were unable to direct as to where I could seek help. I would really like to clear this up if I can, but I am nervous about proceeding without professional advice as this seems to be a real minefield with many risks involved.

    Reply

    • Unless you are contacted about these or intend to return to the UK a practical approach would be not bothering about these. The more time passes, the less likely it is that there will be a problem. There is no simple way to investigate whether there are old judgments or other debts. And no way to investigate anonymously. Let sleeping debts lie.

      Reply

  49. Dear Sara,

    Thank you so much for taking the time to read about my situation and for your quick reply.

    Something I didn’t mention is my mum (who is still in the UK) has offered to put something towards clearing my debts. She really wants me to sort this out and not have it hanging over me even though I am not in the country. I’ve not accepted her offer, but I promised I would find out all the details and afterwards we would discuss further.

    I understand there is no simple way to investigate whether there are old judgments or other debts – but if you were able to make any comments about this case, do you have any ideas for how I could proceed, or at least resources I could reach out to?

    Many thanks in advance.

    Best

    Reply

    • It’s not just that there is no simple way to investigate this. It’s the fact that you simply don’t have a problem hanging over you at the moment. These debts are antique. It’s hard to imagine you ever having a problem in China. Coming back to the UK for visits isn’t a problem. The chances are good that you could come back and live here and never hear about them.

      Reply

      • Thank you again Sara. You have been very helpful. Your website is a fantastic resource. All the best. :)

        Reply

  50. Hi
    I defended a court claim last year and also wrote various letters to the claimant & solicitor asking them to prove their alleged claim for the CC debt. This included sending them the CPR 31.14 request which they failed to respond to within the given time frames. Now a year later the solicitor is asking me to withdraw my defense and arrange a payment plan.
    I am only a 3 months away from it becoming statute barred, and I am wondering what should I respond, or should I just let them continue looking to revive the stayed court claim which may then extend the period towards a statue barred case once it hits court? But what if it doesn’t, how long do i have, any idea if they attempt to revive the ‘stayed’ claim? any helpful advise here is much appreciated. Thank you

    Reply

    • From what you say, I can’t see any reason for you to agree to a payment plan.
      BUT I don’t think the debt is getting nearer to being statute barred – the 6 year clock stops when a court case is started,
      AND I think you need to know more about what your options are now, not just ignore this letter.

      You could talk to National Debtline https://www.nationaldebtline.org/ or ask on the Legal Beagles forum: http://legalbeagles.info/forums/forum/legal-forums/court-claims-and-issues

      Reply

      • Hi Sara
        Thank you for your prompt reply.
        Just to clarify the claimant originally sent me a claim form from the county court in Northampton. I declined to accept the alleged claim and asked them to prove their claim. The court said if they didnt reply within 28 days after my defense the claim would be stayed, to which they never replied to any correspondence within any stipulated times frames (included CPR 31.14 & CCA copy.
        One year later they replied, so the case as yet hasn’t been decided in court, based on just this is it still correct as stated the ‘the 6 year clock stops when a court case is started’ ?
        I thought the clock only stopped when I accepted the claim or paid any amount towards the alleged claim?

        I’m running out of time before they require a response (14days), but that’s saying a lot after they take 1 year!
        So do you think I sshouldn’t agree to any payment plan? and why would they want me to withdraw my defense?

        I will also check the links you have provided, thanks

        Reply

  51. hi sara,
    I currently have 3 CC’s totally to an amount of roughly 10,000, a shortfall of a car repossession (1,500) and a repossession of a property which I am still waiting for NRAM to let me know the final figure that me and my ex partner owe as there is a shortfall of in excess of 30,000 as there was a loan attached to the mortgage. My ex partner has raised an IVA so it take it that it will be me that is liable for that when the final bill comes through. I am a single parent and on low income. I have been in-touch with CAB who I was designated a debt advisor. I am suffering with depression and I am having to move home to council which I now have to find money for to furnish so atm I am very low with it all and off work with stress. Debt advisor sorted out an arrangement between my creditors and I to pay £1 token payment to all and they have all agreed for a term of 6 months to then be reviewed. Am I best off just going bankrupt? I am very worried that they will want to take all my money off me and make me and my son struggle for years then to come out six years later to start again? my son is 6 and I want to still do nice things with him and don’t want to struggle paying a bankruptcy repayment plan for years. Can I just ignore the debt in hope that one day it will just disappear?? I don’t know what to do? I am really depressed about it all.

    Reply

    • “take it that it will be me that is liable for that when the final bill comes through” – very probably.

      “Am I best off just going bankrupt?” – from what you have said, very probably – but did you ask CAB why they didn’t suggest bankruptcy?

      “I am very worried that they will want to take all my money off me and make me and my son struggle for years then to come out six years later to start again? my son is 6 and I want to still do nice things with him and don’t want to struggle paying a bankruptcy repayment plan for years” 7 out of 8 people don’t have to make any payments in bankruptcy – on a low income you probably won’t but ask your CAB adviser.
      At the end of a year all your debts are gone. At the end of 6 years it all goes from your credit record.

      “Can I just ignore the debt in hope that one day it will just disappear?” it’s not very likely to all go away. Along the way you will get court papers and possibly bailiffs.

      Reply

  52. Hi. For a mortgage shortfall is it 12 years from the last payment made towards the mortgage or 12 years from the property was sold and the shortfall created? I last paid mortgage in 2012 but the property wasnt sold until 2016 . I had no contact with the bank or the dca since 2012 other than i letter i sent returning the keys in 2014. Could you clarify this for me please?

    Reply

  53. Hi, I am being taken to court by 1st credit, they bought a debt of an unsourced loan from Lloyd’s bank.
    The last payment to Lloyd’s on the account was in 2007, I have never amitted to the debt with 1st Credit who have been hounding me since around 2014.

    The court date is due to be set between 7-24 April 2018, is it to late to send a status barred letter to 1st credit. I completed all the court papers & attached my defence. being statement that 3 letters had been sent requesting documents to prove 1st credits claim, which I still have not received.

    Up to now I used the site “getoutofdebtfree” and sent both Lloyd’s & 1st Credit their 3 template letters, which requested precipice documents that neither could provide. These were then followed up by an estoppel letter, however 1st Credit have persisted & now I am having to go to court.

    I am worried that the judge will side with1st Credit & I will now have to pay back the debt, I am having sleepless nights & affecting my work & relationship.

    Need advice or help ….

    Thanks in advance Trevor

    Reply

    • oh dear. The three letter process is a menace – it is legally worthless and leaves people who have tried it as a defence in big problems. Especially as it seems as though you may have a perfectly good defence of being statute barred.

      It is pointless to send 1st credit a letter now, you have to defend this case – which will probably involve trying to get permission to amend your defence.

      I can’t advise on that – you could talk to National Debtline on 0808 808 4000. or post on the Legal Beagles forum: http://legalbeagles.info/forums/forum/legal-forums/court-claims-and-issues.

      Reply

  54. Hi, I have substantial old debt (mainly credit card) that I defaulted on many years ago most of which should be statute barred. Many of the debts have been sold on and I have had offers to accept partial payment which i did not accept. Although things have gotten better I still cannot pay even the substantial reduced amounts. The letters from these companies are few and far between in the last year or two.

    I am now in the position to buy a house and I have received a decision in principle for a new mortgage. My credit file has been clear for over a year now.

    My questions are , if the debts are indeed statute barred am I exposing myself to the possibility of the companies coming after the house / deposit after I have it bought?
    What other methods of collection can be used against me for these debts if they are statute barred?
    Have I missed any other complication of taking on a mortgage when I am in this situation?
    I Live in Northern Ireland if that makes any difference.
    Thanks

    Reply

    • “What other methods of collection can be used against me for these debts if they are statute barred?” none – all means of collection start with getting a CCJ – then the creditor can look at the different ways to enforce it. without a CCJ a creditor can not come after your house.

      I can’t say the debts are statute barred – you may find the process less stressful if you talk through each of the debts with National Debtline. So far as I know, being in Northern Ireland doesn’t change this – but again National Debtline can confirm.

      Reply

  55. This may have been covered so apologies however my wife had a debt with QuickQuid in 2010, there hasn’t been communication with them since so assume it’s Statute Barred however we’ve seen the debt now appear on her Noodle credit file with an account start date of 2010 (when she took out the advance) but a default date of 2015 – i assume they’ve done this just before the debt is Barred so we’re screwed until 2021. Can they do this or is this unlawful? Some help would be appreciated.

    Reply

    • If she has had no communication with QQ since 2010, then I suggest she talks to National Debtline about this. If they think the debt is already
      statute barred, she could send the letter in the article above and also add a paragraph saying that the default date on her credit record is incorrect and ask them to change it to 2010.

      Reply

      • Hi again Sara, i have read that ICO guidance is that a default must only be registered with a DCA within 6-months of a payment first defaulting. If this is right then 5-years is pretty unfair. Are you familiar with this?

        Reply

        • oh yes, the default date is definitely wrong. BUT…

          unless you are 100% sure that the debt is statute barred, you have to be very careful about contacting them and asking them to correct the default date because that could be acknowledging the debt and so it would start the 6 year statute barred clock again…

          Hence my suggestion to talk to National Debtline about whether the debt is statute barred. I am not going to say it is.

          If the debt is statute barred than you can ask them to correct the default date.

          Reply

  56. How can I find out when i first defaulted on my Barclaycard? I’ve never paid them back and not heard from them for around 2 years.
    The last time I remember holding the credit card was probably 2008/ 09
    This week I’ve had 2 text messages from a company called Robinson way asking to get in touch to pay back the £5300 That is left from the Barclaycard.
    So how can i find out if this is over 6 years old and whèther or not theyve bought an old account to try and gain some money from it?
    Thank you.

    Reply

    • Have you had a look at your credit records?

      What matters is not when you defaulted to them but when you last made a payment to them – do you know when this was? Also if you have stopped paying but were getting letters, did you respond to any of them?

      Reply

  57. I had a credit card debt with Capital One back in 2003 amounting to £5913. This debt was taken over by Lowells in 2013. They have sent me a statement (not headed) listing missed payments from 2003 to March 2014 and beyond. No payments have been made to this debt but then miraculously a payment of £3.10 is listed in March 2014. They have sent me a claim form which I have defended believing this to be statute barred and I don’t acknowledge the debt and showed them bank statements for the time in question showing no such payment was made. I requested proof of method of payment but they claim it was made direct to Capital One and have not provided any other proof of method of payment! I now have a court date for May 2018. They claim a default notice was issued in 2008 which restarts the clock! I have never had a CCJ and need to understand if a default notice issued in 2008 (5+ years after first missing a payment) restarts the clock. They have sent me a copy of the original CCA (first two pages) showing my signature so cannot defend through this method. My undertstanding was that a debt is statute barred if you have not acknowledged the debt, not made any payments and have not received a CCJ within 6 years then it should be statute barred. And I have not had sight of this default notice dated 2008. Am at my wits end. Please help asap.

    Reply

  58. Hi there,

    Good website. I had a credit card while a student with Egg – taken out in 2004. I made no payments from 2005 onwards or acknowledge the debt in anyway. I heard nothing about this debt again until this year when Lowell had taken a CCJ out against me (I had not received any court info) I have emailed Lowell asking for documentation while admitting no liability. What is the best way to handle this? It must have been statute barred but obviously the court will only look at that if you tell them – I did not have the chance to!

    Reply

      • Thanks Sara – i will do. Its 255 and Iam not eligible help with fees and the judgement is odd in that it is for 176 specifically but then the whole debt is 1000 so still worth it. Also the ccj does not appear on any of the credit ref agencies I have searched!

        Reply

          • Yeah I have searched using trust online with my addresses – nothing shows up! Could they be faking the CCJ?? Its peculiar! I have sent a letter to the court for details – nothing yet – if its there I will ask for it to be set aside

          • I can’t tell what has happened. It is possible that the CCJ was over 6 years ago, in which case it wouldn’t show anywhere. If this is the case, then it is VERY unlikely that Lowell’s will be able to enforce the CCJ in any way such as bailiffs. They would need specific permission from the court. If it turns out this is the issue, then talk to National Debtline because it may be sensible to ignore it, rather than try for a set aside.

          • They (Lowells) claim the CCJ is from March 15th – so could it be it will not appear yet on trustonline or any credit ref search? They claim a payment made (apparently) by me in 2012 means the debt can never be statute barred – as it was within 6 years of the original default. I am waiting for relevant paperwork and then will get some advice on it but the whole thing seems a little strange currently.

          • I think that should be on Trust Online by now, and that then feeds automatically through to the credit reference agencies. You could ask them: https://www.trustonline.org.uk/contact-us.

            When you find the exact date of the phantom payment, I suggest you need to get hold of your bank statement for that month. You can’t prove a negative, but the absence of a payment showing in that month should be helpful.

        • Thanks for help on this. Last question. Is a debt statute barred after 6 years of regardless when. I.e. Card taken out 2004. Default 2005 a payment made in 2011 (within 6 years) then nothing then in 2018 a letter saying its not statuted barred as that payment in 2011 means it can never be statued barred. That is what Lowell are claiming. They are also claiming not to be directly regulated by the FCA!

          Reply

          • Once a debt is statute barred it will always be statute barred, even you did make a payment to it afterwards. You are going to need to know the exact dates of when you last made a payment to the card and when this phantom payment was.

            Are you talking to Lowell Solicitors? They are regulated by the SRA. But the debt will probably be owned by the parent company which is FCA regulated.

            I suggest you send a Subject Access Request (SAR) to the creditor, probably Lowell, Lowell Solicitors have to tell you who this is. Ask for all personal information they have about you, see https://ico.org.uk/for-the-public/personal-information/. Then when you find out who Lowell bought the debt from and when, send then a SAR too.

  59. Hi Sarah. I had a credit card with Capital One in 2007,which I defaulted on in October 2010. Cabot sent me letters relating to this debt of £1,250. I sent them a template form for statute barred, after being advised by an online debt advisor to do. I have now received a court hearing date for July , because Cabot want to try and have the statute barred lifted. They started sending me letters about this debt in 2015. Does the debt re-start from that year (2015).? They are saying that they are within the 6 years term.

    Reply

  60. Hi, this looks like a very informative forum. I used to have a credit card which was offered at the point of opening a new current account with Abbey (Santander) in 2008. Well due to finanicail difficulties I moved money 2k into my current account and since then I never paid anything back into credit card. They contacted me several times and I told them I cant pay anything, they threatened me with CCJ and at the point I was sure its on my account because they stop contacting me, so I was expecting CCJ on my account at that time while i was student.
    In 2017 when I first time checked my credit file, CCJ showed in 2016 instead 2008, so technically they applied CCJ when the loan was statue Barred and also on my previous address which was unknown to me. And since my credit score effected so much that i cant even buy new phone contract.
    After reading your threads, I was wandering if I can go back to courts and request to set aside CCJ while proving that CCJ should not be placed on 8 years old loan and Bank (Originally Abbey now Santandered) failed to take this matter to the courts with in the given ti.e of 6 years so this should be removed from my file.

    Please guide me..

    Regards Abdul

    Reply

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