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
David says
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
Sara (Debt Camel) says
Well just making a few payments by cheque sounds unlikely, doesn’t it! If this proceeds further, you may need to get hold of your bank statements for those two months to show the cheque didn’t come from you.
Have you also asked for a copy of the CCA agreement for this debt? See this template letter https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx. Always try to get as many reasons to defend a case as possible!
If you get a Claim form, contact National Debtline to talk about how to respond.
John says
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.
Sara (Debt Camel) says
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!
nicholas says
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.
Sara (Debt Camel) says
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.)
Jamie says
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.
Sara (Debt Camel) says
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/
Jamie says
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”
Stephen Lowndes says
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?
Sara (Debt Camel) says
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.
steven ponsford says
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?
Sara (Debt Camel) says
what is the default date that is currently showing on your credit record?
steven ponsford says
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
Sara (Debt Camel) says
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?
steven ponsford says
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
Sara (Debt Camel) says
So how long would it take you to pay off the other 19,000 if you don’t pay anything to Nationwide?
steven ponsford says
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
Sara (Debt Camel) says
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.
Sarah says
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
Sara (Debt Camel) says
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.
joanne says
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
Sara (Debt Camel) says
I am not an expert in Scottish debt situation. As far as I know, if a debt becomes statue barred in Scotland, it no longer exists and nothing afterwards can change this… but you do need to talk to an expert so I suggest you contact National Debtline (phone or their webchat is good) as they have Scottish specialists https://www.nationaldebtline.org/S/Pages/contactus/debtadvice.aspx
Ash says
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
Sara (Debt Camel) says
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.
O Browne says
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?
Sara (Debt Camel) says
When did you last make any payment to this loan?
RICH says
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?
Sara (Debt Camel) says
Have they ever provided the CCA agreement? If not send them a request, see https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx.
I suggest you talk to National Debtline about whether the debt is likely to be statute barred.
Amanda says
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.
Sara (Debt Camel) says
It sounds as though you had a HP agreement which is regulated by the Consumer Credit Act.
I can’t adivise on what you should do, you could talk to National Debtline on 0808 808 4000 or post on the Legal Beagles forum http://www.legalbeagles.info/forums/forumdisplay.php?105-Received-a-Court-Claim.
Alan Temple says
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.
Sara (Debt Camel) says
These sound like “old style” student loans. National Debtline say https://nationaldebtline.org/fact-sheet-library/statute-barred-debts-ew/
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.
Lucy says
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
Sara (Debt Camel) says
Was 2015 the last time you made a payment to this card? Does the debt show on your current credit report?
Robert G says
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.
Sara (Debt Camel) says
Global Debt Recovery seems to specialise in buying very old debts.
If they are that old and you are sure you haven’t paid anything for more than 6 years, I suggest you send them a statute barred letter for each debt as the article above suggests. If they carry on contacting you, also ask them to supply the CCA agreements for the debts – see https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx which has template letters for that and note you have to send them £1 for each debt with that request.
Jack says
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.
Sara (Debt Camel) says
The debt purchaser should use the same default date as the original creditor, see https://debtcamel.co.uk/debt-default-date/. You need to tell the debt purchaser to correct this, see that link, it’s no use going through the credit reference agencies.
Jack says
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.
Sara (Debt Camel) says
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.
jack oliver says
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?
Sara (Debt Camel) says
Have the asked you to complete an Income & Expenditure sheet? That’s usually the easiest way to show you can’t pay any more.
Paul says
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?
Sara (Debt Camel) says
Overdrafts are different. You could talk to National Debtline about your options, but I doubt that the overdraft is currently statute barred. Read https://debtcamel.co.uk/no-calls-or-letters-about-debt/ which looks at this sort of situation.
Jim says
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
Sara (Debt Camel) says
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.
Mike says
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
Sara (Debt Camel) says
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.
Sarah C says
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 ?
Sara (Debt Camel) says
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.
Linda says
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.
Sara (Debt Camel) says
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.
Linda says
Thanks Sarah I’ll write back to them and see what they say really appreciate the help
Teresa says
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?
Sara (Debt Camel) says
For credit card debts it is six years assuming you are in England, Wales or Northern Ireland. See https://debtcamel.co.uk/statute-barred-debt/.
So yes, he may well be taken to court for a CCJ in the next 2 years.
Teresa says
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?
Sara (Debt Camel) says
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.
AK says
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.
Sara (Debt Camel) says
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).
AK says
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?
Sara (Debt Camel) says
Just put “alleged” in your answers, you don’t have to correct the form. It’s fine to sign the form.
AK says
Thank you very much Sara. I will do.
Louise says
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?
Sara (Debt Camel) says
“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?
Tobe says
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
Sara (Debt Camel) says
It’s not an area I know much about. Also there is a difference between a DCA trying to enforce a Dubai judgement in England and trying to get a judgment in an English court. You may find this thread interesting https://legalbeagles.info/forums/showthread.php?82767-Dubai-Debt-Enforced-in-UK-Court and I would suggest Legal Beagles as a better place if you want to ask further questions.
Emma says
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.
Sara (Debt Camel) says
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!
steven ponsford says
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
Sara (Debt Camel) says
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.
Neil says
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
Sara (Debt Camel) says
If a debt is partially settled, then a PPI reclaim MAY (but sometimes won’t be) offset against the “remaining balance”.
samanth paisley says
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?
Sara (Debt Camel) says
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.
Joe says
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
Sara (Debt Camel) says
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?
Joe says
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?
Sara (Debt Camel) says
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.
Joe says
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
Sara (Debt Camel) says
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.
Verity says
Is a debt statute barred from the date of the last payment or the default date?
Sara (Debt Camel) says
Typically a month after your last payment – when the next payment failed to arrive. But it can depend on the T&Cs.
EDIT a court case in January 2019 decided that for some credit debts, it must be 6 years since you were sent a Default Notice. See above article which has been updated for this news.
Mrsjc16 says
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?
Sara (Debt Camel) says
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.
AKS says
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.
Sara (Debt Camel) says
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.
AKS says
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
Sara (Debt Camel) says
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.
AKS says
Thank you again Sara. You have been very helpful. Your website is a fantastic resource. All the best. :)
Samz says
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
Sara (Debt Camel) says
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: https://legalbeagles.info/forums/forum/legal-forums/court-claims-and-issues
Samz says
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
Sara (Debt Camel) says
Talk to National Debtline and/or post on Legal Beagles. They can cover the statute barred point and what your options are.
steph says
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.
Sara (Debt Camel) says
“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.
Jo says
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?
Sara (Debt Camel) says
See National Debtline’s factsheet on mortgage shortfalls: https://www.nationaldebtline.org/EW/factsheets/Pages/mortgage-shortfalls/mortgage-debt.aspx – they are good people to talk to about your situation.
I will add that many people find it difficult to decide what to do in this sort of case. Your finances may be improving, you may not want to go bankrupt say because of this old debt, you may hope the debt becomes statute barred… But if you are contacted in three or 4 years time then you will wish that you had taken action now.
Trevor says
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
Sara (Debt Camel) says
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: https://legalbeagles.info/forums/forum/legal-forums/court-claims-and-issues.
Jackie says
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
Sara (Debt Camel) says
“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.
OsxManiac says
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.
Sara (Debt Camel) says
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.
OsxManiac says
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?
Sara (Debt Camel) says
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.
Louiza Meadows says
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.
Sara (Debt Camel) says
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?
Sharon Callaghan says
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.
Sara (Debt Camel) says
I can’t give advice on your court case. Two places that can help:
– National Debtline 0808 808 4000
– Legal Beagles forum https://legalbeagles.info/forums/forum/legal-forums/court-claims-and-issues
Gareth Patrick Gough says
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!
Sara (Debt Camel) says
You need to apply for a set aside now, don’t wait for the documentation as Lowell are no longer obliged to send you CCA agreement now there is a CCJ :(
See https://debtcamel.co.uk/help-ccj/ and contact National Debtline for help on 0808 808 4000.
Gareth Patrick Gough says
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 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
Sara (Debt Camel) says
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.
Gareth Patrick Gough says
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.
Sara (Debt Camel) says
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.
Wendy says
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.
Sara (Debt Camel) says
It doesn’t matter when they sent you letters, what matters is if you acknowledged the debt in writing. This may depend on the exact wording of the template form you sent them.
I hope you have also asked Cabot to produce the CCA agreement for the debt and, if they haven’t, included that in your defence.
As you have a case underway you need URGENT advice on what to do. Two good places are National Debtline 0808 808 4000 and the Legal Beagles forum https://legalbeagles.info/forums/forum/legal-forums/court-claims-and-issues/received-a-court-claim
Gareth Gough says
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!
Sara (Debt Camel) says
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. Then when you find out who Lowell bought the debt from and when, send then a SAR too.
Abdul says
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
Sara (Debt Camel) says
Yes you can ask for a set aside. Contact National Debtline https://www.nationaldebtline.org/ and they can explain the process.
Debbie says
Hi, I read plenty of advice regarding how to deal with satute barred debts, which have been very helpful. What I really would like to know though is how do you go about removing a statue barred debt from the deeds of a house, if that debt was secured to the property. I have read you can offer a ‘token’ as full and final payment, but cannot see any advice as to where you stand if this ‘token’ is refused? Are we left to the mercy of the creditors, even if it can be proved they have not chased the debt in over 12 years? If I understand correctly a property cannot be sold while there are still companies with vested interests on that property but what happens if that ‘vested interest’ is statue barred, what then? Any help would be greatly appreciated
Thank you so much in advance.
Debbie
Sara (Debt Camel) says
Was there a CCJ for this debt or was it originally a secured loan?
Debbie says
It was originally a secured loan. There is a strange set of events surrounding it though, the loan was fraudulently obtained by my husband first wife, he had no idea the loan had been taken out until the bailiffs showed up. Even though it was established that the signature on the loan application was not my husbands the police refused to make it a criminal matter. Solicitors were involved but the outcome was never settled. The last letter we have is from his solicitors dated 2000, they were waiting to hear but from the loan company no response was even received.
Sara (Debt Camel) says
Statute barring is not relevant for this. You need to talk to a solicitor about getting the charge removed – it is a great pity you let this drop in 2000 as it may now be too late to do anything.
Debbie says
The loan company have not been in touch with my husband for over 12 years, does still not mean the debt qualifies as statue barred? If not is there any thing that we can do to remove this debt?
Sara (Debt Camel) says
No, the 12 years refers to mortgage or secured loan shortfalls, when the house has been sold. Whilst you still own the house, the security remains in place for the loan. Sorry you need to talk to a debt adviser or a solicitor about what your options are.
Debbie says
Ok, thank you.
Evie says
This is a very interesting article. What would apply to a joint mortgage, House was repossessed in 2010 and sold with large shortfall soon after. Initially I had a lot of contact with lender but with no income I have never made any payments, but have been in contact (less frequency) to update address etc. They have not written to me in at least 4/5 years and rarely did so before that. I have no contact with my ex (joint mortgage holder) so no idea on that situation. Would statute barred apply in this case? He also left me with a lot of other debt which I have been paying small amounts on since, but this one was just too big! :(
Sara (Debt Camel) says
Hi Evie, I think you should discuss this debt and your other debts as well with National Debtline – 0808 808 4000.
Bronwen says
I took out a loan with my ex husband years ago, for the boat that we both lived in and that I let him keep when we split up. Being financially abusive to me throughout the marriage and divorce, he stopped paying the loan and the bank came after me. I refused to pay a penny (I have a court judgement as part of the divorce process that if I ever had to pay anything, ex would have to pay me back), but did manage to get the PPI we originally took out refunded onto the balance of the loan.
The loan then defaulted again and has remained unpaid ever since, for over the statute barred six year limit. However it is still showing (with the original bank) on my credit record with a status of ‘Unknown’. It is seriously ruining my credit record.
What can I do? Can I get it written off or removed from my credit record? What does the ‘Unknown’ status mean? The bank hasn’t chased me for the debt, but I have no idea if they’ve been after the ex. If they have, he still hasn’t paid anything. It’s unlikely he’s acknowledged their communications.
Sara (Debt Camel) says
I suggest you talk to National Debtline about this in detail. You need to be VERY sure that it is statute barred before you contact the bank to get them to add a default date to the credit record that is more than 6 years ago…
David says
Would claiming PPI on a debt that is statute barred mean that the account no longer becomes statute barred?
Sara (Debt Camel) says
No, once a debt is statute barred it can never become unbarred. But you need to be VERY sure something is statute barred before you risk this as claiming before it is SB will rest the clock. Also there is a chance that the refund will just be set off against the debt anyway as it still exists even if it is statute barred.
Tina says
Hi.
Do I need to have something in writing to confirm a debt is statute barred?
I have an old egg credit card debt that went into arrears. I know Barclays took on all egg’s customers and I wished to wipe the remainder of my debt using ppi. However, if the ppi claim was unsuccessful (not 100% sure I had pp, I am just assuming)… will I have restarted the 6 year clock and can Barclay’s begin chasing me for the remaining result card debt again, if nothing formal says statute barred?
My credit file showed no payments in last 6 years and I’ve never spoken to Barclay’s about the debt.
Thanks
Sara (Debt Camel) says
If the debt is statute barred, you can never restart the clock. When did you last make a payment to it? Credit records aren’t always reliable. Is it still showing on your credit record? When did you default on it?
Nancy says
Hi Sara I’m hoping you can offer me some advice regarding an old utilities debt.
I moved out of a flat in May 2013. I was living alone and struggled with debts while on a low wage so fell behind on some utility bill payments. Recently I have recieved a water bill at my new address for £1900. It claims the amount owed is from 2009 but doesn’t stipulate when it was up till. I lived in the property from 2009 till 2013 but I paid the water for at least 12/18 months. I have since changed banks and have no access to my previous account to check the dates for certain (account is closed). The bill seems to be very high considering it was a small single occupancy flat and I was only there for 4 years. I’m unsure if this debt would be statute bared or not. I’ve had no contact with the company since 2009/10.
If I have to I will accept responsibility (as I know I owe at least some of this money) for it but I can not afford to pay this debt back in full currently. It is still with the water company, no a debt collector and they haven’t gone for a CCJ yet. Judging by the letter I fear this will be their next move though. Where do I stand here? Should I contact them to dispute the amount and time scale? Thank you,
Nancy
Sara (Debt Camel) says
I suggest you ask them for copies of water bills that the debt relates to saying that you were not aware that you owed any money. Then when you have those, go to your local Citizens Advice for help.
Joanne says
I wrote an unsigned letter sent in the post, which I also sent by email where I initially stated the following:
——————————————————————–
“Dear Sir/Madam,
Firstly, note that in this letter I’m not acknowledging that I owe your company any money or that I have any debts with you. The reason I am writing to you is because you have written a number of letters to me and I am replying to your letters.
I suffer from mental illness and for many years have allowed my paperwork to get out of hand and have not been able to manage my personal affairs particular well. Therefore, I am not acknowledging I owe you any money as I do not have any official paperwork such as signed contracts or records that prove I owe your company any money and all I have are general letters from you chasing me for payments but due to my health problems I have not been able to deal with the letters until now.
I keep receiving your letters and naturally I’m worried about them and feel overwhelmed by all this paperwork and feel I must reply to the letters.”
——————————————————————–
In this letter I then gave details of my current financial situation, but at no point did I acknowledge I owe the company any money.
Could this letter be used as proof that I acknowledged the debt and so the 6 years starts from when they received it last year?
Thanks.
Sara (Debt Camel) says
I would hope not. Are you just worried, or is a debt collector threatening court action?
Sara says
Thanks for reply. No court action being threatened but I have no recollection of this debt and they told me on the phone it was lent in Feb 2013, payday loan so the 6 years are getting nearer and I wanted to know whether by writing to them last year whether I had reset this time bar because soon this debt will be statutory barred possibly by March or April next year. I have paid debts I know were mine but this one I do not recall it and am worried about court action so wanted to know if I had ruined it by writing to them last year . I never acknowledged that I owe the debt and made that clear at the beginning of the letter that I was not acknowledging the debt.
Sara (Debt Camel) says
That letter should not have reset the 6 year clock.
BUT you need to know that debt collectors do not normally wait until a debt goes statute barred, it is very likely they will start court action in the next few months.
You say you don’t remember this loan, but did you have payday loans? From that lender – which lender is it?
If you did, read https://debtcamel.co.uk/payday-loan-refunds/ and think if you could ask for a refund if interest from this payday lender (NB from the original lender, not the debt collector) or other ones.
If you win the complaint about this payday lender, then the remaining balance would be reduced or wiped out.
That is likely to reset the statute barred click, but as I said, that rarely works nowadays for payday loans. It is MASSIVELY harder to complain after the debt collector has started court action.
Sony says
Hi
I had a personal loan from a bank in2005 I was making payments for about 8 month until I got into financial trouble and stopped paying the loan. The default loan at some point was past onto a third party company (sold) they chased me for awhile but never responded to any correspondence,they asked me to settle for a reduced amount but I never acknowledged then,later it was past to another third party company (sold) they chased me for awhile asking I contact them and pay a reduced amount, which did not nor did i acknowledge them. It’s been over 12 years now.
So recently I was going threw my old papper work for the ppi claim I came across this loan which I took out in 2005 which 3000 pound of ppi on it for the period of the loan plus 1000 pound interest in the ppi.
My question is, can I still claim the ppi on this account ?
At the point of taking out the loan over the phone they advised me to take out ppi as I needed this in case lost my job etcc at the Tim’e I felt I had to take the loan otherwise I would not get the loan, also over the phone they never explained I would be paying 3000 on the ppi with interest of a 1000.
Please let me know your thoughts as I felt I was pressurised by the sales person on the phone. If at any point they told me it was going to cost 3000 plus 1000 in interest I would not have the loan.
They also did not tell me I could get ppi from another source.
Thanks
As
Sara (Debt Camel) says
yes you can apply and ask for a PPI refund. But if you still owe a balance on the debt, then any refund may be set off against that even if that old debt is now statute barred.
Joanna Asante says
Hi Sara,
I am new to your site, I really hope you can help me. I’ve been receiving letters from Lowell financial chasing me for two old debts. One for EE (which I recognize) and the other from Shop direct which i don’t remember. I sent them a status barred letter because I assumed it must be a very old debt seen as It doesn’t appear on my credit file. They have responded to the letter saying I opened the account in 2004, last payment was in 2008.
Apparently I made a payment between 2009 and April 2013. So based on the last payment of £10 in 2013 (which I don’t remember) they state that the letter is not statute barred. The letter also states a CCJ was issued against me in MAY 2014, with the terms to pat £50 per month (again I had no clue) which is now in arrears.
I need some advice for the best way to proceed please. I am now stuck. The total debt they claim is £1180.23, I can’t afford this as I am already struggling financially. Please help, what do I do next?
Thanks in advance for your time.
Jo x
Sara (Debt Camel) says
Have you asked them for some proof of this CCJ? Ask them for the Court details. It would normally show on your credit record – have you moved?
If there was a CCJ in May 14 then at that point it may not have been statute barred if the last payment was in 2008. And if there was a CCJ it can never now be statute barred.
Nicholas says
Hi Sara, my last payment was 5 oct 2012, is it statute barred now or from the 5th November ?
Sara (Debt Camel) says
I suggest you talk to National Debtline on 0808 808 4000 about this specific debt