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 live in Scotland, the laws are very different. Phone National Debtline on 0808 808 4000 as they have Scottish advice experts.
Contents
An overview
What is statute barring?
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.
In January 2019 there was a decision in the Court of Appeal (Doyle v PRA) that changed the point at which the six-year period starts for some debts including credit cards and loans.
If you are making the normal minimum 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. For you this article isn’t relevant, instead read Can I stop paying this old debt?
What is a cause of action?
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 been 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
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.
If you are contacted after 6 years about a CCJ that you have not been paying, phone National Debtline for advice.
Statute barring for mortgage shortfalls and secured loans
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 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 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 – phone them about this.
Creditor says I made a payment in the last 6 years but I didn’t
Ask your creditor for the date of this alledged payment. Then get your bank statements for that month – you can still get these even from closed bank account going back 6 years.
If there is no trace of you making this payment, complain to the creditor and attach a copy of the bank statement. Ask them for further defails of the payment.
If the creditor persists, take this complaint to the Financial ombudsman.
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
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?
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 sale doesn’t “reset the clock”. If it was already statute-barred at the time it was sold, it remains statute barred. If it wasn’t yet statute barred, it will be 6 years after the “cause of action”, see above.
My debt is statute-barred – if I make an affordability complaint will this re-open the debt?
Once a debt is statute barred this is permanent, it can never become “unbarred” so making an affordability complaint won’t change this.
But if your complaint is upheld, 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.
Also it can be hard to win affordability complaints about very old debts. If you are being asked to pay this old debt, it may be simpler to just tell the creditor it is statute barred and not pay – National Debtline has a template letter that you could use, so phone them.
I can’t give you advice on whether your debt is likely to be statute barred. If you are concerned about a specific debt, 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.
why pay a debt that isn’t on your credit record
What to do if you receive a court form
Ask for the CCA agreement for old debts
Sarah says
Hi I need help I’m stressed out and unsure of what todo, I took a loan out with HSBC back in 2007 maybe even before then. It was at the time £3,000. A year down the line my circumstances changed and I was no longer able to carry on the repayments. Eventually the debt got bought by Lowell. I’ve had a few letters from them over the years but I’ve just ignored them due to the fact I wasn’t working and bringing up children. I couldn’t afoard to pay it back. In 2009 I got married but they still kept sending letters in my maiden name. Things went quite for a few years. It’s only now that in 2016 Lowell have sent me a letter from county court business centre Northampton. Unsure what to do regarding this letter. I’ve not used my maiden name for over 7 years which they still call me by in letters. I’m sure this debt is stature barred. Do I just leave it ? I’m unsure what to do for the best really. Can you help please ?
Sara (Debt Camel) says
I assume you have got a Claim Form. You must NOT ignore this letter – the fact that it is in your maiden name doesn’t matter. If you do not reply within the timescale (which is tight) you will get a CCJ.
Phone National Debtline 0808 808 4000 asap (they are open Saturday morning) and talk to them about statute barring and how to defend this Claim. More about Claims here: https://debtcamel.co.uk/court-claim-form/.
Richard says
Hi We have a situation where council tax has been overpaid by my father who is seriously mentally impaired since 2004. The council collected the money by direct debit. This has just be been realised and a claim is being made for the overpayment. The council is claiming that the overpayment is limited to 6 years because of the SoL. Is this correct?
Sara (Debt Camel) says
I can’t see why the Statute of Limitations is relevant. The council may have a policy that refunds can only be made within a certain time limit however. I suggest you should put in a formal complaint about this and also contact one of your dad’s local councillors and try to get them interested in the case.
Joseph says
Hi, I defaulted on a loan in September 2010 and have just recently had the default removed from my credit history. Throughout this period I have received numerous letters from debt collectors and although my financial circumstances have changed for the better, I decided to wait out the default period. My credit report still shows the amount I owed from this account which led me to this page, can I still be issued with a CCJ at this point? Also, if I were to contact the debt collectors and offer a final payment would that reactivate the default, given to the fact that I have made contact or who this action complete the debt owed and relinquish my connection to it?
Sara (Debt Camel) says
A debt may not be statute barred even though it has dropped off your credit record. You would be badly advised to contact the debt collector until the point you are absolutely sure it is statute barred – can I suggest you phone National Debtline on 0808 808 4000 to discuss this?
Once a debt is statute barred no contact by you can mean it ceases to statute barred and it will never reappear on your credit record.
Paul says
I have a debt for a laptop that due to breaking up with a partner and being made virtually homeless i could not afford to pay. This world have been sept 2008. I have not paid or acknowledged the debt since then but up until that point i had made the appropriate payments to the account having taken the credit out the previous july in 2007. I received a letter to my folks house recently from a dca so i sent them the standard statute barred letter and recently received a response from them saying the debt was not statute barred as the default was not added to my credit file until December 2010 and (convientiantly) is still within the time frame for them to collect. I know for a fact nothing was paid or acknowledged in this time from me paying in a normal payment till the adding of the default to my credit file. They have stated i still need to pay and will obtain a CCJ, is this the case? What is the next course of action for me having sent them the statute barred letter? I know it is SB and i never paid in front to put me in credit for it not to need to default for over 2 years but they have put doubt in my mind. What is my next course of action please? Thanks in advance.
Sara (Debt Camel) says
I suggest you talk to National Debtline 0808 808 4000 about this argument (which they will be familiar with) and your options.
Tony Gibbs says
Hi,
Just received claim form (CCJ) for an old overdraft debt (£1300). The debt account has declared me default on 12/02/2009 (as per my previously saved credit report info) and since has not received any payment or correspondence from me admitting liability. Therefore by law the debt account has automatically qualified for statute barred on 12/02/2015.
Kindly can you please advise how do I now respond to the CCJ Claim form and what to write to the claimant in order to get it all resolved?
P.S. There are no records of this debt account on my latest credit report file, assume it’s been fully extinguished.
Many many thanks in advance for your time & suggestions!
Sara (Debt Camel) says
hi Tony,
statute barring on overdrafts isn’t simple, but you have a good argument with your evidence of the date the debt was marked as defaulted on your credit file. (By the way, the fact the debt no longer shows is because the default date was more than 6 years ago – that doesn’t mean the debt has been “fully extinguished”.)
You need to enter a defence to the court claim within the time limits, which are pretty tight. You don’t need to write to the claimant. Phone National Debtline on 0808 808 4000 and they can talk you through what you need to do, by when, and what is likely to happen next.
Ben Griffiths says
If a company I owe money to has sent a letter to a previous address but I did not receive it or acknowledge it, would this still reset the clock as they can evidence they have tried to make contact?
Sara (Debt Camel) says
No, the clock is reset if you acknowledge the debt, not if they write to you.
Jo says
I defaulted on a credit card following my separation, I sought advice from the CAB and they arranged for me to pay a nominal amount of £5 per month, this was back in summer of 2007. Around 12 months later they stopped taking the direct debit payment, which I left on my account then I could prove it wasn’t me that defaulted on the agreement. The last 12 months or so I’ve been getting letters from a Robinson Way which they apparently took over the debt, I never responded to any of the letters. I have now received a letter from A solicitor which is a notice of pending legal action which also increased the amount by over £3,000, how they can even get away with doing that is ridiculous. Surely legal action has already been taken against me by the credit card company already. I don’t really understand how It can all start again if I already sorted this out with the CAB. The letter also says certain procedural rules govern claims in the county court. Failure to follow those rules may result in the court imposing sanction for non compliance, what does that even mean. Thank you for your advice.
Sara (Debt Camel) says
“Surely legal action has already been taken against me by the credit card company already.” Do you already have a CCJ for this debt? If you don’t, then there hasn’t been any “legal action”, just an informal arrangement. (And you didn’t keep to your side of the informal arrangement as you didn’t contact them when you realised the payments had stopped.) So yes, they can go to court for a CCJ.
HOWEVER from what you have said this debt may now be statute barred (assuming there isn’t a CCJ) and so if they start court action you can defend it. I suggest you go back to CAB and ask them to confirm this, or you could phone National Debtline on 0808 808 4000.
Mel says
Hi I owe the council money from 12 yrs ago and in my maiden name , will the debt be cleared and can I re apply in my married name or will I be refused.
Sara (Debt Camel) says
If the council applied for a liability order (that’s the equivalent of a CCJ for council tax) it will never become statute barred.
The fact that you changed your name on marriage doesn’t make a difference. But I am not sure what you are “re-applying” for?
Mel says
My circumstances will be changing soon , I don’t owe money for council tax just rent arrears will that be the same as the council tax
I’m confused to how I owe money for the council tax before I got married I paid any outstanding council tax it was just the rent arrears I never cleared. I was 18 when I received the property and the first couple of months I was claiming job seekers so I should of had my rent paid to but that never happened
Sara (Debt Camel) says
Hi Mel, but you DO owe money for the old council tax. i think you need to talk to a debt adviser about your options. I suggest your local citizens Advice, who will be used to dealing with the local council. They will be able to talk to the council and help you understand the situation and what your options are. There isn’t any point in me guessing.
Elizabeth says
Hi
I left British Gas (Electricity) in Sept 2010, on the back of a complaint over estimated bill. The last time I paid/acknowledged was July 2010. I’ve since received several letters over the years from various DCA, the last of which being Aug 2014 and have not responded to any of them. I’ve heard nothing since. One of the DCA’s placed a Default in Aug 2014.
Fast forward 2016, I’m attempting to clean up my credit file. Could I write to British Gas, asking them to correct the Default Date to 2010 or would this definately not be advised/total waste of time & effort? Will this be resetting the clock for statute barred, although to be honest, I would rather pay the outstanding (£99), then its ‘settled’ without CCJ’s in threat. I know there are Guidelines for Default Dates but should I bargain with them (I’ll pay this if you…..) or just demand the correction and pay it at the sametime? My main aim would be to get it off my credit file :-{
Thanks in advance for any advice…
Sara (Debt Camel) says
Bargaining isn’t likely to work, it’s British Gas that have to add the correct default date, but they don’t own the debt any more so you will be paying someone else.
I never like suggesting someone pays a debt they don’t agree with. In your situation your three options aren’t bargaining but:
1) pay the debt then ask BG to correct the default as this article suggests, or
2) complain in writing to BG that the debt is incorrect and go to the relevant Ombudsman if they reject the complaint. This would have been much better tackled back in 2011 and it may be difficult to get resolved now, or
3) talk to National Debtline about whether the debt is statute barred 0808 808 4000. If it is, just ask BG to correct the default date and don’t pay it. If they refuse you can fall back to (1).
Jack says
Hi, great article, quick question, How far will debt collects, creditors etc go to find you. If i sell up and move to the other side of the world, can i expect a letter or knock on my door, or is uk finance law, reclaiming unpaid monies etc restricted to the uk or europe?
Sara (Debt Camel) says
Hi Jack, this article https://debtcamel.co.uk/can-creditors-find-me/ looks at this sort of query
Emma says
Hi, I had loans with HSBC ongoing for years, I’d been keeping up todate with them until November 2008 when my partner passed away, the loans were always in my name but due to his passing all my fianances were thrown up in the air, I couldn’t afford to make payments so I didn’t and failed to engage in any communication with the bank (which I know is wrong). I then made a ppi claim I think in 2013 but never followed it up (due to other circumstances) anyway the bank then sent a letter to my parents address in September 2016 offering my over £8000.00 regarding the ppi claim is made in 2013, the debt is no longer with hsbc they have confirmed the loan accounts have been closed. The debt has been passed onto a debt collection agency and has been for the past couple of years. Im only just getting back on my feet, I checked my credit rating and the hsbc loans aren’t showing and no CCJ records. My question is would these debts be statutory barred or by me making the ppi claim in 2013 would this have stopped this? If i accept this payment can I request it comes to me? I’m really confused by it all.
Sara (Debt Camel) says
Claiming PPI may well have stopped the debt becoming statute barred – it will depend on how you worded the complaint. Refusing the payment offered won’t change this. It would be a mistake to refuse the offer and then find the debt isn’t statute barred.
It is up to HSBC whether the money goes to you or to the debt collector that owes the debt.
Nat says
Hi, I took out a student overdraft for £200 with Lloyd’s in 2008. I moved to Australia in 2010 and had forgotten about the debt. In 2013 I returned to the UK, still completely unaware of the debt and was never contacted regarding it. I never thought to check my credit score as it has always my intention to move back to aus as my fiance is Australian. However, recently we have discussed remaining in the UK and buying a property. I checked my credit score and found that the old Lloyd’s debt was still on there and has been marked as ‘late payment’ since 2014. Obviously as I have not acknowledged the debt for over 6 years, if the debt had been marked as default, it would have fallen off my rating by now, as I have not touched the account since 2008. I’m debating whether it’s best to just pay the debt now and hope my credit score slightly improves before we look into mortgages, or if there’s another way around it as I feel the debt should have been changed to default years ago!
Sara (Debt Camel) says
As this article says, the subject of when overdrafts become statute barred is tricky because there is no monthly payment required. And the same applies to the date a default should be added. Imagine you had gone abroad for a year’s contract, made no transactions on your UK bank account and came back expecting to still be able to use your bank account as you hadn’t missed any payments and it was still within the overdraft limit – if you found the account had been defaulted and closed, you would be cross in that situation, wouldn’t you?
It’s very unlikely you will get LLoyds to add a default back in 2010. And if they add a later one, that isn’t going to help your mortgage application. Also if you contact them now to ask them to change the default date, you are going to have to repay the debt or they may consider going for a CCJ. If you are serious about getting a mortgage, repaying it now and adding a note to your credit file saying you were unaware of this debt and have repaid it as so as you found it is probably the best you can do.
Vicki says
My partner had a Santander current account years ago…. I’m talking at least 8 years ago- probably longer.
As far as he was concerned, all was fine and he account was closed.
Then about 3 years ago, he started receiving letters from Santander every 6 months. They weren’t debt collection letters, more like bank statements with a balance of £60- it was unclear if this was £60 credit or debit? He contacted the. Bank by phone and they said it was a closed account and they didn’t know what it was and to ignore it.
This week, iv discovered its affecting our ability to have an overdraft on our joint account. He has called the collections team and they’ve confirmed he owes £60.
This has not shown on his credit file for at least 5 years.
If he pays the £60 for the sake of stopping the contact, will it put this debt back onto his credit file and spoil what is now a clean credit file?
Sara (Debt Camel) says
No it shouldn’t. If it does, ask for a default date to be added that is 8 years ago – that will make the debt disappear.
Damian says
Hi
I have two longstanding debts (both with different default dates in January 2011, according to my Noddle credit file).
One has never had a response or received payment from me since then, but the current DCA that holds the debt has the incorrect address for me on their files (again according to my Noddle Credit file). I have moved twice since that date in 2011, which explains perhaps why they’ve never got hold of me. My plan here was to wait two months and hopefully it will drop off my file, due to 6 years having passed. would this be correct, am I in the clear? as they may have tried to get me but at different addresses?
The other has been passed around, none of the DCAs have received payment from me since then or correspondence but a relative recently offered to help me pay it off (it’s the smaller of the two debts). I hadn’t checked the default date and was not aware of the ‘6-year’ rule. Hence I have emailed them to suggest a full and final settlement at 40% (what the relative would be able to pay). They have responded by email asking me to confirm several aspects/details so that they could be sure they were dealing with the correct person before any discussion via email of the account. That was when a friend suggested I should have waited and said nothing until after January. Would this contact have restarted the clock so to speak, or would the fact that I haven’t confirmed anything in their second request see me able to wait until after January next year and the file to drop off my credit report?
Many thanks for any advice you could give.
Sara (Debt Camel) says
The first debt – I don’t know if it is coming up to being statute barred – dropping off your credit file doesn’t mean that it is.
The second one, if you have offered a full and final settlement, that email is likely to have restarted the clock.
Julie says
I have received a letter from a debt recovery firm saying I owe council tax from 23 years ago would this not be statute barred as it was so long ago
Sara (Debt Camel) says
If the council had got a Liability Order within 6 years, it will never become statute barred. However as the article above says, you should consider complaining to the council – and your local councillors – that after all this time it unfair because you no longer have the paperwork to prove what you paid to this debt.
Ian says
Hi
I have an large overdraft on my current with NatWest which went into default in May 2012. I no longer use the account and have made no payment since January 2012. However, in September 2013 a deposit of £100 was transferred into my account by a friend by mistake. Does this affect the date of when it will become statute barred? The deposit was not authorised by me and was never acknowledged by NatWest.
NatWest have not made any contact with me regarding this account since 2013. They passed it to 3 successive DCAs during that year but after me disputing the details, they all returned it to NatWest.
Thank you
Ian
Sara (Debt Camel) says
I think it would be wise to assume that the deposit has affected the date this will become statute barred.
John says
Hello
For personal/family/health reasons I unexpectedly departed the UK in 2004. I had a a small overdraft with a bank and about 3000 pounds on a credit card and about 200 on Amex. I had no communication from any of the banks and I not made any contact with them.
I am still outside the UK and want to return to UK and open a bank account.
When I return:
a) Will I be able to open a simple bank account or will the past unpaid balances prevent that?
b) Will the balances still be due and if they contact me what should I do?
Thanks
Sara (Debt Camel) says
It sounds as though they should be statute barred. I suggest trying to bank with a different bank – you should have no trouble in opening a basic bank account, see the list in here: https://debtcamel.co.uk/bank-accounts-after-bankruptcy/
Jane says
I moved overseas in Feb 2010 and suddenly a relative in the uk has had debt collection letters sent to the in my name. They have returned them as never lived at that address but still keep getting them. If I respond from overseas does that start the date process again? Obviously my relative wants me to contact the companies involved to tell them to stop writing to the uk address.
Sara (Debt Camel) says
Yes, it will reset the clock – unless the debts are already statute barred, in which case they will remain statute barred. Could you tell your relative to just put letters in the bin but contact you asap if there are any court forms?
Donna says
I have been told that the limitations time starts from the last payment on an account but if it was a buy now pay later item would this mean it was the first missed payment almost a year later that would reset the clock? I ask because i have a court summons and going by the bnpl 1st missed payment i think the debt is within the 6 year period but someone on a forum is telling me my debt is infact statute barred and i should defend in court. I have already agreed a payment plan with solicitors and they are still going ahead with the decree. So confused right now. A National debt helpline advisor told me he thinks its too close to call and i may encur court costs if i defend myself and lost. Also the summons says “and with costs” how much is that likely to be 5 years after a default?
Sara (Debt Camel) says
Hi Donna, if you have discussed the case in detail with National Debtline, then I suggest you follow their advice. “Forum shopping”, asking about your case on a lot of different internet sites, isn’t usually a good idea.
Donna says
Hi yes this wasnt actually my question on the forum it was more an explanation of my fear of courts and large solicitor firms taking me on when I know the debt is extinguished. but the person seems to want me to fight the case I have already resigned myself to admitting and paying as the grey area is too grey for me to consider with my total lack of knewledge of the law. I cannot find anywhere online a definate answer to when the limitations period starts to be confident in my defence.
My question on the forum was more about how likely am I to be taken to court on known statute barred debts recently taken on by the company taking me to court already. I sent a time ran out letter as advised by national debt helpline but I still fear they will get the same solicitors involved who have bought this current case. I know I just have to wait and see now but it hasnt stopped me losing sleep this weekend about it all.
Sara (Debt Camel) says
Sorry are you saying you have other debts apart from this BNPL one and you are sure the other debts are statute barred?
Which forum are you using?
Donna says
Yes. The bnpl debt is up to a year after the others as it is the only explanation i can think of why its a year later than the others in defaulting. It seems that admitting the one I am unsure about has started the demand letters to the other two. I also think these two debts were purchased by this dca because I havent disputed this current one.
All of my debts were not paid after september 2010 when I lost my job and moved to scotland I fully expected to be made bankcrupt back in 2010 as I could not afford to do it myself I hoped the creditors would instead. Unfortuanely I was wrong and now 6 years later I am about to get a decree which isnt a bad thing because it will ensure I never try to get credit again. Its what the balance will be by the time expenses are added that worries me the most especially if the other two also go to court and i am too scared to defend against them.
The forum is consumer action group.
Sara (Debt Camel) says
“It seems that admitting the one I am unsure about has started the demand letters to the other two” more likely they have just been bought so they are now being processed.
“I also think these two debts were purchased by this dca because I havent disputed this current one.” Very unlikely – loans aren’t selected individually, a large block of debts is purchased together.
I know it probably feels as though the DCA is out to get you, but it is much more likely all your debts are just going through automatic processing.
FWIW, I doubt the BNPL one is statute barred. I think ND’s advice not to dispute is good.
BUT there is no reason to be scared to defend these debts. It is very unlikely there will be a lot of costs added on. And if your “last paid” date is right AND the debts no longer appear on your credit records (have you checked all three credit reference agencies? See https://debtcamel.co.uk/best-way-to-check-credit-score/) you should win the case. Not fighting poor cases is sensible, but fighting good ones isn’t as bad as you think.
ND are good and if you want support from a forum, I always suggest Legal Beagles where there are a couple of solicitors who post.
Ryan says
Hi around six years ago I applied for an course with train for trade skills which is not what I imagined. Long story short, the debt keeps getting forwarded on to other companies. The. New company has now said that if I don’t contact them within 7 days they will doorstep call. I’m confused as to whether send the three letter process to them as it may reset the almost six years of not making a payment. Any help would be appreciated many thanks, ryan
Sara (Debt Camel) says
The three letter process is a legal nonsense. It won’t help your case at all.
Very few Debt Collection firms doorstep call. If they do you are not obliged to talk to them or let them in.
Ryan says
Thanks Sara, I found a letter welcoming me to the course stating the date 29/10/2010 and I never once made a payment to them which would mean it’s statute barred as it has been over six years now. However I had someone call to my house today and post a card through my door. I spoke with someone from their company and he said it’s not statute barred, he mentioned something to do with a default date and it would be statute barred in August
Sara (Debt Camel) says
Do you have the credit agreement? When were you due to make the first payment? Did you ever start the course?
Train 4 Trade Skills are not simple cases – I suggest you talk to National Debtline about your situation and whether they think it is statute barred – they re-open on 3rd January.If they don’t think it is, you could go to your local Citizens Advice as part of your defence may be that the course was mis-represented to you.
Ryan says
Yeah I have the credit agreement, the first payment was due a month after they sent me the welcoming letter which I assume is the advance date which would still make it statute barred from where I see it. As far as starting the course, they sent me booklets in order to help me with my studies but did not help me when I’d contact them over the phone so I told them I will not be paying anything and it began from there really. Thanks you very much for your help Sara it is very much appreciated. I will contact national debt line when they are open.
Cheryl says
Hi.
A company has recently made contact with regarding what I think is an old credit card debt. I have not made any payments for any card since June 2010. They have indicated that the payments were made from a bank account I still have and use. Does this mean they can prove the debt is mine?
Sara (Debt Camel) says
If you aren’t sure the debt is yours, then send them a Prove It! letter, see https://debtcamel.co.uk/prove-it/.
If you know the debt is yours it’s worth asking them to produce the CCA agreement for the debt, see https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx.
If you haven’t made any payments since before June 2010 (NB are they saying that you have?) then the debt is possibly statute barred, as the article above explains.
Ale says
I have an unpaid loan since 2004. In May 2011 my account became in default and in my credit report it says the account is in default and reported until May 2017.
I would like to know if this debt will be status barred and erased from my credit record in May 2017. Please could you advise me?
Many thanks.
Sara (Debt Camel) says
You are sure this was a loan, not an overdraft? And that you haven’t made a payment since 2004? Is it now with a debt collector or the original lender?
Ale says
It was an unsecured loan taken out in 2004, no further payments were made after 2010 and the account became in default in 2011.
Many thanks
Damian says
Hi there,
I have two large debts that defaulted in January 2011. No contact or payment since. On checking my credit reports the last three days, Noddle has loan A still remaining and loan B disappeared from my report, Equifax has it the other way around (A disappeared, B still there). Experian has both now removed. I am assuming that because they only hit the 6 years in the last few weeks that they will both disappear from all three reports in the next weeks but that this just hasn’t happened yet as some reports (Experian) are more up to date than others.
I was wondering really how quickly my credit score may rise once these two debts aren’t showing in any report? I have no other issues once they have gone debt-wise.
Many thanks
D
Sara (Debt Camel) says
Part of the “timing” issue may be that you are looking at “old” credit reports. If you are using the free credit score checking services, they mostly only produce a report for you every 30 days. So checking in another week may show you the same report even if a default has dropped off the records. If there are no other problems on your credit record, i would expect a big jum in your credit score when they are both gone – why not come back and let us know?
Sarah says
Hi I thought I was statute barred on my debts after looking at my credit report with Experian… when I checked with Equifax there were two more from current accounts with Natwest, one joint, one mine. No activity on these accounts since 2009, yet the default dates are end of Jan 2017 and end of June 2017. I have just had a letter from Wescot asking for me to ‘call the number … and if this person doesn’t live here etc etc call this number’… I am nearly SB on the first one… just a couple of weeks… and the second debt in a few months. What you you suggest I do? I am assuming that these pertain to the Natwest as I understand Wescot deals with bank debts… I am not in a position to pay these debts…Any advice much appreciated
Sara (Debt Camel) says
Do you mean the default dates are January 2011 and June 2011? I suggest you talk to National Debtline 0808 808 4000 about your options – the default date isn’t strictly relevant to whether a debt is statute barred, and statute barring is tricky in relation to overdrafts.
Richard says
I have a letter from a debt chasing company in December 2016, about a Debt from 2001, (overdraft charges I guess from my old bank). I have not made any payment, acknowledged anything from about 2002. Also when I looked at my credit file it’s shows the company have put default notices on there from October 2016. What is the best way to proceed??
Sara (Debt Camel) says
Hi Richard, first I sugest you talk to National Debtline 0808 808 4000 about whether this letter / credit file entry refers to your overdraft and how to tell if it is statute barred. If they think it probably is, one step would be to oput in a complaint to them asking them to correct the default date on the debt to something back before 2010… which would mean it will drop off your credit record straight away. But you don’t want to to do that befroe establishing if the debt is likely to be statute barred.
Tony says
Hi
I am at my wits end – I took out a loan with First Response finance in 2004, to buy my then wife a car. Soon after we were divorced and the court consent order stated that she should make the repayments to this loan. Years later I discovered that she had not kept up the payments, and the non payments were marked on my credit file. First Response were marking my file every month with a “Sustained Arrears”marker. As this had been statute barred for years, I approached Noddle in October 2016, and they removed the history, but told me that First Response could still update each month. Sure enough, the next month it appeared back on my report as sustained arrears. This is responsible for giving me the lowest credit score I can possibly have (Very Poor), despite me having no other issues for over 10 years, not even an overdraft. My new wife and I own a property, however I can not have a joint mortgage, purely down to this. It is ruining my financial status, how can I get this resolved once and for all.
Please help.
Sara (Debt Camel) says
It sounds as though a default should have been added to this debt many many years ago 6 months after payments to the debt stopped. See https://debtcamel.co.uk/debt-default-date/ for how to ask for a default date to be added. This sounds like a peverese thing to do if you want to clean up your credit record but debts with a default date of more than 6 years ago drop off your credit record so it will promtly disappear if an old default date is added.
Tony says
Thanks for the reply – Noddle told me that when approached, the finance company refused to agree that they would not continue to update on a monthly basis, and are not going to add the default date, so I am indeed stuck with their perverse actions! I am frightened to contact them directly, as they currently do not have my new address, and I don’t want the chasing to commence after so many years… What to do next?
Sara (Debt Camel) says
I am afarid if you want this sorted you have to communicate with the creditor. I suggest you to talk to national Debtline as the above article suggests to re-assure yourself that this debt really is statute barred, And then you write to them saying that the debt is statute barred and that you want them to add a default date of [date]. If they do not agree, take your complaint to the Finanical Ombudsman.
Emma says
Hello….
I have been paying a debt back for the past 6 years with Robinson Way, I pay monthly £75. It has now come off my credit report but I am still paying it. Do I have to put it on a mortgage application if it’s not shown anywhere?
Many Thanks
Sara (Debt Camel) says
Hi Emma, unfortunately when you apply for a mortgage, the lender will almost always ask to see your bank statements and spot the payments to the debt collector. This is likely to make it hard for you to get a mortgage, see https://debtcamel.co.uk/dmp-mortgage/ for more details.
Louise says
Hi All, I have an old Egg loan and the last time I made a payment was in June 2010. I reclaimed PPI from Canada Square in 2014 and they offset £769 towards the debt. The debt has been sold to Arrow Global in 2011. In June 2016 I complained that the loan was unaffordable. Is this loan statute Barred or have I reset the clock by claiming PPI? Thanks for any help.
Sara (Debt Camel) says
It will all depend on the wording of your PPI claim, but my guess is that you have almost certainly reset the clock.
Chloe says
Hi there,
My partner is currently being chased by Lowell for the following
Orange-£490.17
HSBC- £423.85 (offering 75% discount)
HBOS- £1636.05
Now my question is do we accept the discounts and get them paid? If so does this effect any future credit rating? As We are willing to pay them off but want to know if by paying the discounted rate will effect any future credit file?! Baring in mind I have been with him 3 years and he’s made no contact with regards to these I’m sure more than 6 years(SB?) he did have a credit excerpts account and none of these came up on it.
If they are offering such a big discount does that mean it’s been over 6 years?
I want us to get on track with our life and just want to get rid of these but not sure which is the best way to go about it? Also if we get these paid off is it likely that a massive debt he hasn’t been chased for for a few years and is differently SB will come back to find us?
Any information or help would be lovely x
Sara (Debt Camel) says
First he needs to look at his detailed credit records (not excerpts or a summary or just his score) from all three credit reference agencies, see https://debtcamel.co.uk/best-way-to-check-credit-score/.
If a debt isn’t showing it has probably dropped off 6 years after defaulting. In that case it won’t reappear if he settles it in full or partially.
Offering a large discount means they are old. They may be statute barred, I’m sorry but your husband seems too vague to be sure about that!
If you are happy to pay them if they are not statute barred, one approach would be to write to them and tell them the debts are statute barred and you will not be paying. If they can then produce any evidence that he has paid or acknowledged the debt in the last 6 years you can then settle it.
Lowells ckearly know where you live. Any other debt that isn’t statute barred is also likely to find you even if you ignore these letters.
Ashraf Rahman says
Hi,
I’ve read through the thread and think i’m in a similar position to a lot people, i have outstanding debt, which after checking noodle, does not appear. I’m pretty sure the last payment made was over 6 years ago and no written acknowledgement was ever made and since then they have been sold from the banks to DCA’s. Again, never responded to them.
One company did get a CCJ against me and place a charge on the property that i lived in, they thought it was my property. It was actually my fathers, we have similar names. I had that charge removed, and after checking the online trust register nothing appears.
If i try to start building up my credit score again, will these appear again?
Will banks or mortgage lenders still see these outstanding debts?
Thanks for your time.
Ashraf
Sara (Debt Camel) says
First you need to check both the other credit reference agencies, see https://debtcamel.co.uk/best-way-to-check-credit-score/.
Next “pretty sure” is not good enough – if you have made a payment in the last 6 years it cannot be statute barred.
The CCJ is presumably still showing? That will never become statute barred but the creditor will need to go back to court to try to enforce it after 6 years.
Simone says
Hello, I found your article interesting and very informative. I have a query and I do hope that you will be able to assist me.
I took out a loan in September 2006, but as a result of a family breakdown and other factors, I was unable to make any payments.
The debt has been sold on to several other debt companies and every now and then I’ve received letter asking me to make payments, but I’ve never responded or communicated with any of these companies. It is also not on my experian credit report.
The question I’m asking is: Is that debt now declared statute barred?, How can I get them to stop writing to me?
Awaiting your response. Thanking you in advanced.
Sara (Debt Camel) says
If you are sure you have never made a payment to this loan and never communicated with the creditors in writing, then it should be statute barred. The article above has a letter you can write to whoever now owns the debt.
Jack says
Hi Sara
Not exactly linked to this thread but I took a loan for 10k with HSBC who I banked with at the time.
I was in financial trouble and literally applied and signed up on line in 5 minutes to get the cash on account , subsequently defaulted , account closed and sold on to 3rd party to whom I still pay – no problem with this my mess so I am fixing , however can I complain re affordable and responsible lending on basis they were aware my account was overdrawn and distressed and still they lent off an online application and no checks or dialogue ?
Sara (Debt Camel) says
Yes you can put in an irresponsible lending complaint. The fact that they were your bank means they should have looked at the other information they knew about you. It will depend on how “overdrawn and distressed” your account appeared to be. If you can get your bank statement for the the month of ledning and the couple of months before, see what they say about your finances and make these points in your letter of complaint. Also if your credit record would have showed recent late/missed payments, unpaid defaults/CCJs.
I know you are familiar with payday lending affordability complaints (for anyone who isn’t see https://debtcamel.co.uk/payday-loan-refunds/). Affordability complaints about bank loans are much the same – you have to show the repayments were not affordable AND that the lender should have known this. With a bank loan like this one, there is no “pattern of repaeat borrowing” that should have alerted the lender BUT the loan is so much larger that they should have made more thorough enquiries when approving the loan.
Good luck – probably best to put any further comments on the payday loan affordability page not here.
DB says
Hi,
Before I met my wife, she was reportedly overpaid income support in 1994. Supposedly overpaid income support again in 1997 and received a social fund loan in 2001 which was has not been repaid (although she cannot recall obtaining this loan). The total amount is just over £1000. Today and quite out of the blue she received a letter from DWP stating that they were going to take a DEA out with her employer. Prior to this letter she had not heard a thing from DWP.
The DWP have stated that they are entitled to do this under the Social Security (Overpayments and Recovery) Regulations 2013 act.
I have tried to find a difinitive answer on the internet as to whether this act is still subject the the Statute of Limitations Act but can’t.
Are you able to assist? It seems totally nonsensical to me that the government can introduce a new piece of legislation whereby they can retrospectively chase these debts as far back as 22 years.
Sara (Debt Camel) says
Benefit overpayments are complicated. The first step may be to challenge her liability for the debts rather than the DWPs right to recover them. I suggest she goes to her local Citizens Advice asap and gets help to do this.
SO says
A creditor states I made a payment in 2013 but I have no knowledge. I have asked them for proof but they havent sent any, just written in a letter saying I paid £10 in September 2013.
What do I do now?
Sara (Debt Camel) says
I suggest getting a copy of your bank statement for that month and showing that there is no such payment.
nikky says
I had a student loan in 1992 and was under the assumption that I would not have to start repaying until I earned £17000.i had to finish university early due to ill health.my last job was a part time one in 1997(left due to ill heath).i heard nothing from no one whilst still at my parents home (I left in late 98 early 99).then in 2016 some 24 years later I get a letter from a DCA saying they are acting on behalf of erudio student loans.(who probaly have bought the debt cheaply when the SLC sold off thousands in 2013/14)after a few quite rude/abrupt phone calls I wrote a letter regarding the statue of limitations.
I then heard nothing for 5 months,then the calls started again,now they are claiming a CCJ was taken out in 1997(I have no recollection of this)and the debt cant be statue barred…if a CCJ was taken out by the SLC then can erudio enforce the CCJ?
i’m still disputing this as I have heard nothing after all this time,and would a CCJ even be active if the SLC haven’t chased after it in 20yrs??.
if someone could help me how I stand legally (and hopefully help others in the same situation)
Foxtrot Oscar says
Doesn’t section 24 of the limitation act prevent a CCJ over 6 years old being enforced?
Sara (Debt Camel) says
I am not a lawyer but as I understand it the decision in Lowsley and another v Forbes (1996) was that section 24 prevents a new “action” but enforcing an existing judgment doesn’t count as an “action”. CPR 83.2 3(a) sets out the need for permission of the court after 6 years.
So for nikky, the first question is what proof can be produced that there was a CCJ, and after that the creditor would have to produce a very good reason why they have waited 20 years before trying to enforce it!
TD says
Hello, Myself and my partner had a mortgage with Abbey National that we defaulted on and just posted the keys through the letterbox in 1995. We had been paying it for about 6 years. Five years later (or so) we had a letter through to say that we owed £18,000 – most of which was fees for them selling the house. They also sold the house to well below the market value of the time. We sought legal advice via the CAB and made no payment. They stopped contacting us many years ago. I now wonder if we can claim PPI on the account and if we do would it re-open the account for them to start chasing us? I have a similar situation with a Lloyds bank account overdraft and loan from the same time. We were having a very bad time financially.
Sara (Debt Camel) says
It shouldn’t start them chasing you again as the debt is statute barred. But it still legally exists, so there is little point in trying to reclaim PPI as they will be entitled to “set off” any PPI refund against the debt so you are unlikely to get anything.
It is vital in this sort of situation that you don’t use a claims firm, otherwise you can end up owing the claims firm their fee even though you never received any money as it went towards your debts.
TD says
Thanks – would it stop us getting another mortgage after all this time?
Sara (Debt Camel) says
Some mortgage applications ask if you have ever had a house repossessed. I can’t say which lenders will care about this ancient history, many won’t. Don’t apply to Santander is a obvious tip! I would suggest talking to a mortgage broker. See https://debtcamel.co.uk/mortgage-with-debts/.
Amie says
Hi me and my partner had a joint loan in 2009 I fell
Pregnant and my partner lost his job we moved back in with my parents and we defaulted on the loan I think November 2009 as I was six months pregnant at the time. We since then have moved a lot and not acknowledged the debt we was very young and scared as they kept threatening us with all
Sorts so stupidly we didn’t make contact at all. As it’s over 6 years now we read it would be statue barred and we requested a copy of my credit report there was no outstanding debt or ccjs on my file so presumed it was barred , however I’ve noticed that they have done a soft search on the 6/2/2017 but at an old address , can anyone tell me where I stand with this , we have not had letters
Chasing it for years but wondered what they could do doing soft searches on my file slightly worried now as I’ve applied for a credit card builder to build up my score does this mean anything ? Thanks
Sara (Debt Camel) says
Not being on your credit records doesn’t mean it has to be statute barred, but this sounds as though it is if you haven’t made a payment since Nov 2009. You may be reading too much into a search. If they do find you you can defend any claim for a CCJ.
Amie says
Thanks for replying I’ve contacted national debt line who have advised by accessing my credit report I’ve alerted the debt company they cannot say for sure why they have done the soft search however this could be that they are looking for me
I think after accessing my credit report I’ve made a bad move I think I’m going to start now receiving letters and my only option is to reply with the statue barred letter and hope the don’t try and take me to court !
Sara (Debt Camel) says
I don’t think you have made a bad move, you can’t hope to stay in hiding forever. Statute barred is a good defence if it goes to court – National debtline can help if that becomes necessary.
Kofi says
I took a loan from HSBC in 2001 (about £5000) and I had a credit card with them too which I had used about £3000 as well. I lost my job and couldn’t make the repayment after making the repayments for more than a year or two. I resorted to CCCS and was making repayments in bits, but I soon couldn’t make the repayment and so I stopped completely. That was about 2005, my last payment. Ever since, I have never responded to them, though I have moved homes ever since (about five time). I think the loan and my other debts were bought by some agencies and I was getting letters from them, but I never responded to any of them.
I firmly believe the loans and the debts had PPI. In my situation, would I be able to claim PPI from these loans and other debts? I recently entered into IVI when my employer went bust and was struggling to keep my head above financial waters. The company who advised me to enter into IVI has sent me documents to fill so they can initiate any PPI on my behalf to help me financially as my financial situation is very bad.
But I’m afraid that, this will trigger or reset the clock. I’m afraid of being chased up again by debt collectors and being inundated with letters demanding their money.
Can you advise me if it will prudent for me to collect any PPI from HSBC any other lenders.
Sara (Debt Camel) says
Claiming PPI on statute barred debt does not reset the clock – once statute barred, always statute barred.
But reclaiming this money isn’t going to help you at all as it it may (a) be offset against the statute barred debts and if it isn’t, it will be paid into your IVA. Claiming the PPI back does you no good at all.
Are you struggling with this IVA? How much are you paying a month? How large are the debts that went into it? Are you buying or renting?
Alison Clarke says
Hello,
I have/had a secured loan which I haven’t paid since Jan 2010 as I had money difficulties… I have NEVER been contacted by the loan company & they have since folded & the new company has never contacted me either…
Now that I am moving I am concerned about this debt. It shows on my land registry document (with the original loan company & NOT the new one) but it is NOT my credit file…
What should I do? Will they take the monies owed?
Thanks in advance.
Sara (Debt Camel) says
This debt won’t become statute barred. Your solicitor will try to contact them to repay it when the property is sold.
Jay says
Hi
I had a credit card which i had to default due to losing job at the time. I have never paid a penny on this nor replied to company and it is now coming up to 5 years since date of default.
As far as I know there is no CCJ, and they have sold the debt many times with various companies writing letters. I moved property twice in this time and do not even receive letters any more on this (last one 7 months ago?)
I am guessing I just wait out the last year and hit them with unenforcable debt?
Thanks
Sara (Debt Camel) says
Or they hit you with a CCJ before then… see https://debtcamel.co.uk/no-calls-or-letters-about-debt/.
Andrew Herd says
Hi, interesting article. My situation is simmilar to a lot on here where i have a credit card debt whichi have not acknowledged for over 6 yeas or made a payment however a had a refund credited to the card about 3years ago from a misold product (not PPI or anything to do with the card) . My question is will this refund prevent the debt becoming statute barred.
It is with cabot financial who have recently issued a county court claim.
Thanks
Sara (Debt Camel) says
That is actually a pretty unusual situation. I suggest you talk to National Debtline about it 0808 808 4000.
saq says
A long story short, it is alleged I opened an account in August 2000 and the last payment was in January 2009, but the claimant was able to get a CCJ in December 2014, within the 6 years period. I only became aware of it in 2016, In March 2017 I was able to get it Set Aside in agreement with the claimant, on the condition I file and serve a defence and again. I have never admitted the debt.
As it has been Set Aside, which effectively means as if the CCJ never existed, does that mean now in 2017, I can claim it as Statute barred. I have gotten conflicting advice. Mostly yes but some say not sure, could you please help clarify, thank you.
If it is relevant, the claimant has not provided me with any documentations at all, just dates.
Sara (Debt Camel) says
So far as I am aware, this is not statute barred. Starting court action would have stopped the statute barred clock. Which has now started ticking again.
I suggest you talk to National Debtline 0808 808 4000 about this and what your defence should be.
Sharon says
We have received regular letters about a debt still owing which 1 I don’t agree is correct amount owing but think that interest may have been added and 2 we defaulted on this credit card in 2006. We have had a few different Finance Companies chase us for the debt which we have never acknowledged does this mean we can ignore the letter or send the letter Debt Camel suggest, my husband is worried that they will turn up on the door step or worse take it to Court I was going to contact to contest the amount owing but have so far just ignored it I can’t have people turning up on the door step and certainly don’t want to be dragged through Court can anyone advise me what we should do and what enforcement this CABOT FINANCIAL I cannot believe they are still chasing after 11 years?? Help !!!!
Sara (Debt Camel) says
Hi Sharon,
well no-one has turned up on your doorstep so far, have they…
It sounds as though you haven’t made a payment to it since 2006. If that is correct, this sounds statute barred. You could just send the letter there is a link to in this article.
BUT the credit card also sounds really old. In which case Cabot may not be able to produce a true copy of the original Consumer Credit Act (CCA) agreement. See https://www.nationaldebtline.org/S/factsheets/Pages/gettinginformationfromyourcreditors/creditagreementadvice.aspx which has more about this. I suggest you talk to National Debtline on 0808 808 4000 about both the statute barred and CCA agreement issue and they can explain your options.
FmCool says
I believed a debt was statute barred as when I checked my credit file last payment was in 2009, now it has gone off my file. Llowell now demanding payment, I sent a statute Barr letter to them but they replied that termination of service was in 2009 but payment was made in Sept 2011 so not making it statute bar which I totally disagree as my situation was so bad for that period and could not have afford to make any payment from 2009. So how do I prove I haven’t made any payment since 2009 especially that of 2011?
Thanks
Sara (Debt Camel) says
Hi FmCool, do you have your bank statements from Sept 2011 that will prove you didn’t make a payment?
FmCool says
Hi. Thanks for the response. I don’t have the bank statement, the account had been closed. I sent a letter to llowell to prove date of last payment but they had ignored this. They informed to have made a court claim which I have not received any letter regarding this. Also they asking me to contact the court for a copy. Am a bit confused as if they had made a claim there might be a ccj. Am I to contact the court for this document if not too late now? Also as I don’t have evidence of last payment and they haven’t sent any either, how do I prove my case pls.
Sara (Debt Camel) says
It is possible to get bank statements from closed accounts, I suggest you talk to the bank about this.
It’s not clear to me if they have started a court Claim or if they have already got a judgment. I think you should talk to National Debtline https://www.nationaldebtline.org/ about this urgently (i.e. Today) as if they have started a Claim you may have very little time left to respond.
FmCool says
I think they have started a court claim as they said I should contact the court to get a copy of the form they claimed to have sent to me. I do not have any of the bank details as it’s been long the account was closed. What do I do with the request I made to llowell to send me proof of payment which they did not reply to?
Sara (Debt Camel) says
Contact the court and contact National Debtline asap – they provide excellent advice and support if you have a court case.
Sarah says
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
Sara (Debt Camel) says
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.
Rachael Russell says
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.
Sara (Debt Camel) says
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?
Rachael Russell says
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.
Bebe says
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
Sara (Debt Camel) says
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.
Gary says
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
Sara (Debt Camel) says
Hi Gary, I suggest you talk to National Debtline on 0808 808 4000 about this.
paul says
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
Sara (Debt Camel) says
I suggest you go to your local Citizens Advice and ask for help with this.
Viki says
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.
sarah says
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?
Sara (Debt Camel) says
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.
Lee Johnson says
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?
Sara (Debt Camel) says
It doesn’t matter whether an acknowledgement is to the original creditor or a DCA, it still resets the clock.
Lee Johnson says
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.
Sara (Debt Camel) says
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.
Lee Johnson says
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
Sara (Debt Camel) says
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
FmCool says
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?
Sara (Debt Camel) says
As I said before, talk to National Debtline. Sorry, I can’t provide advice on an individual court case.
E help says
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.
Sara (Debt Camel) says
“My credit report stated that it was settled in court.” Sorry, could you giv some more details about this?
E help says
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.
Sara (Debt Camel) says
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?
E help says
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.
Sara (Debt Camel) says
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.