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
Clive says
Hi Sara
Thank you for your reply’s and all advice will be taken onboard.
I think the main reason for me making a full and final settlement offer is, in case the law changes in the future and I cannot rely on the present day arguments as to why I do not need to pay this debt off.
Also previous I had asked Link Financial not to contact me by phone and only wanted them to address the situation by letter. Would them now contacting me by phone, email and text messages be considered harassment. Again would it start the clock ticking if I made a complaint to them about this
Sara (Debt Camel) says
I think the chance of any future law change that was “retrospective”, affecting people who have already been told their debt is unenforceable, is incredibly small.
Would them now contacting me by phone, email and text messages be considered harassment.
In a court of law? that would depend probably on how frequent it is. That is why I suggested you started to keep a record.
Any complaint is likely to start the statute barred clock again. It wouldn’t concern me as this debt is unenforceable, but you obviously want to avoid this.
Debtissues says
Can I ask, why would complaining about harassment re-start the clock?
Surely if you say to them that you consider them contacting you so often to be harassment, but you do not agree the debt exists or acknowledge it at all anyhow as they have failed to prove it.
Surely that’s not acknowledging the debt, it’s complaining of harassment.
Sara (Debt Camel) says
how many of these communications are there?
dave says
Statued barred – Very interesting! Hypothetically what if you had written to all your creditors, explained your financial situation (like the debt charities advise, a budget plan), and tried to set up a repayment plan and you also have proof of posting from the post office and then some or none of them replied. the ones that never replied at that point, you could prove a conclusive date that you last made contact? what do you think?
Sara (Debt Camel) says
and cross your fingers and hope lots do not reply? Sounds an unlikely plan to be of much help to you. And unless there has been defualt notice, you may still have trouble.
Unless you are very close to the SB point, this isn’t really something worth thinking about.
Debtsimproving says
Worse than that – by writing you acknowledge the debt and thus reset the clock.
If you sent those letters years ago, fine, but if you haven’t, don’t!
Dave says
I see want you mean about crossing the fingers, The proscribed way would be to use a third party and find a reasonable way to pay off the debt.
But if the SB date had long gone and they continue to chase, they are not going to stop there is money to be made or remade! the only course of action is to be taken to court, and then it is at that point a date that can be proved as the last contact and then taken into account.
Sara (Debt Camel) says
But a letter doesnt prove it is the last contact – if they are going to assert there is more recent contact, a letter doesnt disprove that.
Seriously, this is not a plan you should have any expectation of working. If you are going to contact your creditors, you should expect them to reply, not ignore you.
katherine says
Hi Sarah
I wason here few months ago (september – ish) . Last time I replied I updated to say that id sent the cca request but not received anything. I didnt follow up, I left it to see if they came back with anything. They hadnt, until today when i received a Notice of Sums in Arrears. What is this? Am i right in thinking this isnt the cca i asked for? theres nothing on it really only the amount owed and covers period of 12/05/19 – 21/11/21. i assume this is when they took it on?
There is no mention of my last letter to them. Looks like a standard automated type letter. There is nothing else. What should I do? Do I contact them? Or would I be best contacting the orginal creditor or would that be poking the sleeping bear?
Sara (Debt Camel) says
It is a standard letter to say your account is in arrears. It has nothing to do with your request for a copy of the CCA agreement.
Have you ever had anything acknowledging you have asked for the CCA?
KATHERINE says
Nope. Not a sausage. I was feeling quite anxious as was thinking is this them gearing up to start ccj proceedings.
Sara (Debt Camel) says
no, this is a standard letter. BUT you need to follow up and ask why you have not had a reply to your request for the CCA. Did you enclose a cheque? Was it cashed?
KATHERINE says
I did and they promptly returned payment saying it was not needed.
Sara (Debt Camel) says
ok, that’s good. Then ask them why they have not replied to your request.
KATHERINE says
Ok. So that one today is absolutely separate from what I asked for?
Sara (Debt Camel) says
Yes
KATHERINE says
Ok. Can I clarify then, for this to be enforceable they still need to provide the cca?
Sara (Debt Camel) says
yes,
But you need to find out what is happening.
KATHERINE says
Thats my next step yes. Just wanted to be sure in case they chance it and issue something. So ideally I now need them to confirm they dont have it and therefore not enforceable. At least buy me some time while i make other enquiries.
Stephen says
Hi. Great article thank you.
I have received a court claim form for a debt.
I was going to set up a payment plan with the company but realised the date they give on the claim form for the default notice balanced against the date on the claim form makes the debt statute barred.
Can I stop it being heard in court based on this information?
Thanks
Sara (Debt Camel) says
You would have to submit a defence to the claim.
What sort of debt was this?
Stephen says
Credit card from 2008. Default notice 2014.
Have submitted my defence based on it being statute barred. Was wishful thinking on my part that it simply couldn’t be heard in court then.
Seemed odd that the claimant would provide me with a signed legal document that helps me. Unless they have become too used to people never responding or turning up to court?
Waiting for their documents to arrive for the next step.
Sara (Debt Camel) says
did you make any payments after the Default Notice?
Stephen says
Hi Sara.
The last payment made by myself was on the 6/22014
However the debt company is citing a payment made in 2017 but this has a – next to the figure which surely is not a payment to the account?
The transaction log I have states
Posting category code: PAY
Transaction type code: 103
Description: payment from FDR
Amount: -57.82
I went into branch but they said they didn’t know what the code was or who/what fdr is as “it was a long time ago and the codes and abbreviations have changed”
Under the transaction I’ve laid out above is another from “legal&trade” again with – next to the figure
I’m more confused than ever. All I can find on the internet for three number transaction codes is that they are internal.
So do these count as payments to the account? Or is it just MY last payment to the account that counts for the statute timer?
Sorry for the essay
Sara (Debt Camel) says
You are sure you did not make that payment – have you looked at your bank ststement for that month?
Did you make any PPI reclaim or anything like that?
If not, then I suggest you reply that you did not make that payment and you would like them to explain who the payment was from as you have no idea.
Stephen says
Thanks for the reply. No, no ppi and It would show up as a normal payment with an 8 digit payment code. Not a 3 digit transaction code…..
To be honest I’m not sure it is a payment to the account as it has a – (minus symbol) next to the amount. Looking through the statements everything with a minus is interest or fees. My payments have a + next to the amount I’ve paid in/ off.
Can you confirm if it is a payment from ME that would reset the statute timer or any payment?
If Lloyds can’t tell me what or who it is I can’t see the claimant knowing what or who fdr is…..
Sara (Debt Camel) says
if it has a negative by it, it sounds like a charge, not a payment.
So far as I know, only a payment by you or by someone you have authorised to credit the account, would reset the statute barred time. You can talk to National Debtine on 0808 808 4000 about this – but if this isn’t a credit it seems simpler to point that out!
Stephen says
Doubtful as I wasn’t in the same country with the card. Which is why the Account defaulted in the first place. Reading through your article I’m glad I had forgotten about it or I’d probably have claimed the ppi and potentially reset the statute ‘timer’.
Wasted an hour today on telephone banking but as address has changed and the account has been sold the person at the other end couldn’t help at all.
I’m due into the local branch tomorrow to hopefully find out what happened and when. Will update when I have more info
Cara Killey says
Hi, I have just found your page, and thankgod it makes some sense, can I just clarify something, I received a card through my door, stating for a call back. I called back and spoke to Resolvecall working on behalf of Arrowglobal – on speaking to them they said It was for £500 for a catalogue company called Kays back in 2006 16 years ago ciitzens advice never pick up, so is this right, after 6 years the debt is passed, I haven’t heard from them in all this time, am I riught in thinking as the account was sold to who ever after the 6 years, it would be statute barred , and that I dont have to pay them. I actually cant believe after 16 years out of the blue, I got this, not once did i ever get any letters or anything I told them I would be phoning back on monday ~ any help would be greatly appreciated
Cara
Sara (Debt Camel) says
If you are sure you have never paid them since 2006, I suggest you tell them that you have no records of such an old debt and if you owe it, it is stature barred. If you talk to National Debtline on 0808 808 4000, they have a template letter you can send or email.
If they perist, then you can also ask them to produce the CCA agreement for the debt and a statement of the account, see https://debtcamel.co.uk/ask-cca-agreement-for-debt/. But with such an old debt, just saying it is stateute barred will often resolve the problem.
Cara Killey says
Hi Sara, Thank you so much for putting my mind at ease, when I spoke to the bloke, he was saying in scotland they have a limit, I said we are not in Scotland and I wont be paying you a penny, and I will call back, didn’t give him any time to start. lol I will be saying this on Monday.
Thanks Cara – will let you know what they say
Cara Killey says
Hi Sara, So I phoned them this afternoon,and told them i didn’t remember the account, and also said i had spoken to Citzens advice and other debt agencies, and said that account would be Stature barred. The response i got was Ooo lol, he said yes i know, he said we give customers the chance to pay it, and he said he will send that back to the original company. So yes thats that done with, but I do think alot of people wouldn’t think to investigate matters. Thanks Sara for this website, it has certainly saved me countless sleepless nights. Cara
Claire says
Fantastic x
Pawel says
Hi. I had a car from Welcome Finance in 2007. About 2 years later, I lost my job and couldn’t afford the payments and asked them to take the car back but they refused. I paid token payments. They never repossessed the car. The car (a 2003 model) rotted on the car park because I didn’t use it. They still never took the car back. Welcome then went bust, and a company called IND took over, got a CCJ on me which has since dropped off my file. I was paying 40 a month to them up until May 2016. Since then, I heard nothing. No letters, no calls. Now this month, I get a letter from Intrum saying I owe money. This debt is due to be SB in May of this year. I don’t believe I should pay this any longer because of the aforementioned way Welcome treated me with not repossessing the car. What steps should I take?
Thanks.
Sara (Debt Camel) says
I am afraid a CCJ never becomes statute barred.
But can become MUCH harder for the creditor to enforce.
I suggest you phone National Debtline on 0808 808 4000 and talk about your options.
Tony says
HI Sara,
I need help. In 2001 I took out a loan which due to ill health fell into default and was on my credit report as defaulted until circa 2008 when it fell off.
In 2012 the lender issued a CCJ which I defended as statute barred. The lender didn’t respond and it was struck-out also in 2012. In 2014 the lender suddenly appointed a dodgy debt collection agency which used illegal means to try and collect the debt. I complained to FOS and they (debt agancy) were told to pay me £200 as compendation and to desist. In 2019 the lender made a fraudulent entry into my credit report stating I had agreed to an ‘arrangement to pay’. I complained to the Ombudsman again which in May 2021 instructed the lender to remove all entries relating to the debt from my credit file and pay me £150 in compensation. During all of the complaints to the FOS the lender did not respond to any letters from me or the Ombudsman and refuse to abide by it’s ruling 0f May 2021. Now suddenly in Jan 2022 a new credit file entry has been made showing it to be in default once again . This has ruined my credit score all over again and has done so for the last 20 years. I am at my wits end. I am a disabled pensioner. What can I do? Please help!
Sara (Debt Camel) says
and refuse to abide by it’s ruling 0f May 2021
So they never paid you? And the entries are still on your credit record?
Was this a decision from an adjudicator at FOS or a second level “Final Decision” from an Ombudsman?
who is the current creditor?
Tony says
Hi Sara
the creditor is the LondonCommunity Credit Union (LCCU).
It was a ‘final Decision’ by the Ombudsman.
They never paid me , they didn’t remove the entry from my credit record, but during the inquiry by the FOS they changed it’s status to ‘closed’ with a zero balance. They have not replied to two further letters of complaint by me and ignore warnings of being in serious breach of a legally binding FOS decision.
In January 2022 it has been changed again to ‘open’ with a defaulted balance of £2163 and as two months in arrears. My credit score dropped by almost 70 points.
Tony says
Hi Sara,
as yet no email received.
Thanks,
Tony
Sara (Debt Camel) says
check your spam folder?
Paul says
Hi Sara, I received a letter out of the blue yesterday from DWP Debt Management saying I owed them £370. I thought it was a scam letter at first but logged on using the details provided in the letter and it said I owed £310 from some crisis loan in 1997 and £60 for something in 2008.
I did an Accountancy degree and took a year out back around 1997 but all the debts I racked up that kept getting sent to my mums address I cleared from 1999 when I got a decent paid job as an Accountant so I am sure if this had been outstanding and they had been sending letters then the balance would certainly have been cleared. It’s 25 years ago so I don’t recall any of it.
I don’t know where I stand with Statute Barred with DWP. I certainly haven’t paid any payments to these or received any correspondence before (for at least 10 years). I’ve been on the electoral roll at my current address for over 3 years so I’m just wondering why I would suddenly receive this letter out of the blue. Unless they have new computer system or because it’s start of a new tax year they’ve just sent a lot of people random letters claiming money from potentially historic loans that may have been cleared in past years but showing unpaid now. Anyway I haven’t spoken with them yet but do I have claims to ring or write back to them mentioning Statute Barred (prefer to write so its documented)? Thanks for any help
Sara (Debt Camel) says
I suggest you talk to National Debtline on 0808 808 4000 about this.
Paul says
Hi Sara in 2013 I had a car which I was paying for each month unfortunately I was sent away for a few years , all this was explained to the company and the car was picked up and taken back . Fast forward to now just recieved a letter off collections company to repay the outstanding debt any advixe
Sara (Debt Camel) says
I suggest you talk to National Debtline on 0808 808 4000 – if they think the debt is statute barred, they have a template letter you can send the debt collector.
Ali says
Hi Sara,
I need some advice on something. I made a purchase from Goldsmith in 2014 on instalment and I went through a terrible financial crisis after. I was not able to make any payment in fact I did not make any payment. All these years I did not hear anything from them and all of sudden now they are sending me letters. Recently they have sent me a letter saying that they will take me to court for CCJ. I am panicking as I had a CCJ before and that one is about to go away from my credit profile and I do not want another one on my name. Also, that debit was removed from my credit profile but now as I said I am getting letters from them. Can you please advice what should I do in this situation. And the debit is around 1000 pound.
Sara (Debt Camel) says
I suggest you talk to National Debtline on 0808 808 400. If they think the debt may be statute barred, they have a letter you can send to the creditor.
Sam says
Hi Sara,
I believe I might be entitled to PPI refunds on several credit cards debts that are now stature barred.
As well as possible an old Mortgage account.
Is it safe for me to make a claim? and is there anything I should do or check before doing so?
Finally, what would happen if I try to claim PPI? Will the company keep the money or will I get it, and what happens if they keep, will I owe anything to the PPI Claim company?
Thanks
SAM
Sara (Debt Camel) says
It isn’t possible to make a PPI claim anymore – unless there are very exceptional circumstances the deadline was in 2019.
The only way to make a claim now is through the courts – some solicitors are touting for business, I don’t know how much success they are having. If you want to use one of them, ask them your questions, get the answers in writing AND be very clear what their fees are in advance before you sign up, as if you get money paid that just reduces an old unenforceable debt, you may still need to pay the claims firm.
Sam says
Thank you Sara.
Nat says
Hi Sara,
I’ve just received a letter from SafetyNet and I’m really confused about whether I owe them money, it says ‘update to your agreement with SafetyNet’ and talks about my credit with them, it’s a Credit Agreement, and it’s with a figure ‘total amount payable’ that I don’t recognise, it’s from around 2015 and therefore I think it’s statute barred as I had a much smaller one (around £250 when I was struggling) which through my own error I hadn’t kept an eye on. I’m really confused by the wording and I’d rather just make it clear that I’d like to end any relationship with them. There’s nothing on my credit file from them, I’ve checked across the board.
Sara (Debt Camel) says
when did you last borrow from them?
Natalie says
Hi Sara, apologies I didn’t see you response. I haven’t borrowed since 2015, or made a repayment since then. Therefore it should be Stature Barred I believe?
N
Sara (Debt Camel) says
Please talk to National Debtline about this – it is not something that I gave an opinion on.
Monica says
Do you not recommend stepchange since they give free debt advice too ?
Sara (Debt Camel) says
As do Citizens Advice & CAP. And many small local advice agencies.
I recommend National Debtline here as they have a template letter you can send a creditor if they think the debt may be statute barred.
Lyndsey says
Hi Sarah, can you help at all please. I recieved a letter out of the blue from DWP last year saying i owe £7000 from 2009 to HMRC for overpayment of tax credits. Its taken til this year to get a response as to why its owed. Reason given was cause they allegedly sent me a letter asking to confirm dependents and as i never replied within 3 months they are claiming back. The date of tbe letter was 2 months after i moved. I never got that letter. Also they say there was a delay in them recieving that info (not due to me). The HMRC say i don”t owe them money it was passed to DWP. The DWP say im not allowed to dispute as the 3 months has passed. But i never got that letter. They have made it incredibly difficult to navigate a complaint and i never had further contact drom 2009 to now even though i had accrued overpayments through self employed tax credits in 2016 and paid all that back throughout 2016. I’m paying back this £7000 whilst trying to dispute. Can i go down the route of its over 6 years and i had moved so never got letter. Or is it a waste of time disputing ? Apparently i can only complain via my MP if he gives consent to contact Ombudsman. But unsure at what point i can go to MP for Parliamentry Ombudsman to support. Any advice be much appreciated.
Sara (Debt Camel) says
What is the rest of your financial situation at the moment?
Lyndsey says
Am like others had a negative financial hit from pandemic, paying off loans from HMRC pandemic help, credit cards etc and energy bills doubled so not a great place but not in complete hardship. Can definately do without a £150pm payment plan til 2025.
Sara (Debt Camel) says
ok, well if it gets bad then it’s probably a good idea to take debt advice on your full situation, included this old alleged debt.
In the meanwhile if you go to your local Citizens Advice they can look at whether an appeal can be made.
Lyndsey says
Ok will do thank you !
Mark says
Hi Sara,
My mother says I owe her for a loan of £20k from 35yrs ago which was paid back over 30years ago with interest. Only an old acknowledgment of the loan existing from 35yrs ago remains of this.
Is it upto her or I to prove it does or doesn’t exist?
Sara (Debt Camel) says
If you didn’t repay the loan, if there has been no communication about this for 30 years, then it will be “statute barred” – too old for your mum to be able to go to court and enforce it.
Mark says
I thought as its an ‘unregulated loan’ that statute barring doesnt apply according to the 1980 act?
Sara (Debt Camel) says
The Act of Limitation provides for the times on statute barring, it is not restricted to commercial or regulated lending. See https://en.wikipedia.org/wiki/Limitation_Act_1980. In this case, the loan from your mother is likely to have been a “simple contract”. I suggest you talk to National Debtline on 0808 808 4000 about this to set your mind at rest.
Louise says
Hi Sara,
I have a Santander unsecured personal loan which shows on the following credit reports,
Experian – Account in default – Default date 04/2017 – last payment received 04/2015 – remained 6+ months in arrears until default 04/2017
Equifax – Closed Credit agreement – Status Settled – Date satisfied 04/2017 – last payment received 04/2015 – remained 6+ months in arrears until settled 04/2017 (no default date ever entered that I can see on my report)
Transunion – Closed Account – Status Satisfied – Date satisfied 04/2017 – Default date 04/2017- Account End date 05/2017
I moved abroad in 2012, last payment was made 04/2015, I have never had any communication from Santander (however I was abroad 2012-2019).
My question is should these be statute barred ? Can I request the default date is brought forward to 6 months after last payment (then this wold drop off my file) or would I be acknowledging the debt and resetting the clock?
Its confusing that the three agencies have this recorded slightly differently.
I’m trying to apply for a mortgage but it seems this is causing me a few problems.
Thank you
Sara (Debt Camel) says
My question is should these be statute barred ?
Possibly. Talk to National Debtline on 0808 808 4000 about this.
Can I request the default date is brought forward to 6 months after last payment (then this would drop off my file)
yes you can. Or for the Equifax record a default needs to be added. BUT…
or would I be acknowledging the debt and resetting the clock?
If the debt is statute barred, then it will remain statute barred, the date cannot be reset.
If the debt is not statute barred, then asking for the default date to be changed or added will reset the 6 year clock.
Its confusing that the three agencies have this recorded slightly differently.
This is Santander’s fault, the CRAs just report what they are told.
It is possible that the debt was sold to a debt collector. If you talk to Santander, you need to ask them if this has haapened.
Daniel HaLevy says
Hello,
In July 2018, I was unsuccessful to pass my last year at one of the colleges of the University of London, and was advised by the university to resit the year. I did so, but did not pay the tuition fees because the fees we (my family) had allocated were for three years, assuming I would pass all years. I have ~9000 GBP in UNPAID TUITION FEES, NOT DEBT, as I did not qualify for student loan, and have been receiving payment warnings by the university but have not responded to them since Nov 2019. Is it possible that in two years time, when six years are completed, I invoke statute of limitations?
Sara (Debt Camel) says
it is possible – you can ask National Debtline on 0808 808 400 to confirnm this.
But it is more likely that either the uni will take you to court before that date or the debt will be sold to a debt collector who will take you to court. I suggest not getting your hopes up.
What is the rest of your financial situation like?
Freedom says
Hi there. I’ve checked my credit report on clearscore and my default is:
opened on: 22nd Nov 2016
However is has been:
updated: 17th Feb 2022
I never acknowledge anything over the phone and it looks like a company has bought my debt. Has the default date been reset to the updated date?
Freedom
Sara (Debt Camel) says
what sort of debt is this?
if there is still a default date showing 2016, it hasn’t been changed. If you want to be sure, it’s always best to check your statutory report, https://www.equifax.co.uk/Products/credit/statutory-report.html
Freedom says
It’s a debt from Very.
Sara (Debt Camel) says
ok then check your statutory credit report and see what the default date is there.
If you are hoping this will become statute barred 6 years from that date, the article above explains why it isn’t quite that simple.
MasterPlan says
My wife has a debt that is statute barred but they are still reporting it on her credit file, can they do this and how can we ask them to stop?
Sara (Debt Camel) says
is there a default date showing on the credit record?
how do you know it is statute barred?
MasterPlan says
There is no default date, she did something silly (DD clawback) but never made any payment offer or acknowledgment in seven years now, but they are constantly reporting the balance on her credit file.
Sara (Debt Camel) says
with no default date this will never drop off. She needs to ask them to add a default date. before doing that, I suggest she talks to National Debtline on 0808 808 4000 to see if they think this is statute barred.
Tim says
Hi Sara,
Cabot held an old RBS CC account, I have previously had one instance of communication with them (approx 3 years ago) stating I did not recognise the debt and to provide a CCA – one was not provided. I have received a letter this week saying the account has been sold to Ruthbridge.
Can I contact Ruthbridge and request a CCA? If they can provide one, can I then state that it is statute barred? (>6 years since last payment and cause of action, have not acknowledged debt)
Further to this (just out of interest) am I correct in saying any acknowledgement needs to be in writing? Would discussing it on the phone not constitute as acknowledgement?
Thanks!
Sara (Debt Camel) says
yes I suggest you ask Ruthbridge for the CCA. See https://debtcamel.co.uk/ask-cca-agreement-for-debt/ which has a link to a template letter to use. Follow that template and add a sentence at the start saying you do not recognise the debt [if that it the case], you disputed it with Cabot in 2019 [or whenever] and they were unable to produce the CCA agreement. Also enclose the £1 with your letter.
Acknowledgment has to be in writing. But I would get into the habit of saying “this alleged debt” or “this disputed debt” if you talk to a debt collector on the phone about it.
Talk to National Debtline on 0808 808 4000 if you think the debt is statute barred. As the article above these comments says, it is not always easy to ascertain the cause of action.
I am assuming the debt is not on your credit records any lonmger.
Pam says
Hi Sara,
I have a question regarding what is classed as ‘acknowledging debt’ I hope you can help me with.
Back in July Cabot admitted my CC debt with them was uncollectable (unenforceable?) as they couldn’t provide the CCA (thank you so much for all you CCA advice on this site!). They never actually confirmed it was unenforceable in writing, but as they haven’t contacted me since I’m guessing it is official.
So my next step is to wait the 6 years until it is classed Statute Barred. However, I’ve recently moved and I wasn’t sure if contacting them to update my address is classed as ‘acknowledging debt’ and cause the 6 years to reset? I could phone, or email or try logging in to my online Cabot account to update my address? Or is any form of contact an acknowledgement?
Thanks in advance for your help.
Sara (Debt Camel) says
I don’t think logging into an online account and updating your address counts as acknowledging the debt because it doesn’t mention the debt.
Luke says
Hi Sara
Could you give me a more in depth analysis of what is acknowledging a debt …
Does this have to be acknowledging the dept in full to the penny ???
What if there is £1000 owing on a dept but I only acknowledge owing £10 of the dept on the account would that reset the timer ?
If so is there any literature on acknowledgement or case law on this ??
Regards
Sara (Debt Camel) says
No, it’s acknowledging a debt owed, not a precise amount.
If you would like to give some details it may be easier to talk about your case.
Luke says
Hi Sara
Thanks very much for your response..
Is there any case law on this or where in the limitation act does it say part acknowledge is an admission that resets the clock ??
It seems to be silent on this issue unless you know otherwise …
Id be happy to hear from you on this issue as I’m unsure where this information comes from as the limitation act appears silent on the issue ??
Sara (Debt Camel) says
I suggest that if you dispute the large majority of the debt you should just make that clear.
Otherwise you need to talk to a solicitor as I don’t know how you can argue that only part is acknowledged for the purposes of statute barring.
Luke says
Hi Sara thanks again for your swift response
This was exactly what I did and a court ruling heard that as the debt was not acknowledged in full so the judge did not accept that the timer would be reset -or a fresh Cause of action had happened..
this is why I reached out to you to see if there was any evidence or further confirmation as the limitation act states that acknowledgment of a debt in writing resets the clock but does not clarify if that has to be in full to the penny ??
It seems odd the the debt would have to be acknowledged to the penny for it to be reset ??
I wish there was more information regarding the acknowledgment and what is classed as acknowledgment.. no solicitor seems to be able to pin point my question or give further clarification either way ..
Sara (Debt Camel) says
so are you unhappy with the court decision? what is happening now?
Luke says
Hi Sara
Yes I’m unhappy about the decision as I’m lead to believe that the limitation acts states that acknowledgment of a debt resets the clock it does not mention that the amount of debt acknowledged has to be to the penny correct
Sara (Debt Camel) says
What harm is this decision causing you.
luke tomes says
Hi Sara.
Im owed the money the £1500 and my debtor only acknowledged £10 of the debt.
The money has been owed for 7 years but the £10 acknowledgement in writing by the director was within the 6 year limitation period.
Hence the original question of does the acknowledgment on the account of £10 reset the timer on the account regardless of the amounts owed ??
They obviously do owe the full amount just trying to be clever
Sara (Debt Camel) says
I’m sorry but I don’t give advice to creditors trying to recover money. I suggest you consult a solicitor and follow their advice.
Clive says
Hi Sara
I have a debt with a well known debt buyer. They brought the debt around 2015. I asked for the agreement in December 2016 and they advised they could not supply the agreement. Because I stopped paying them they defaulted the debt around june 2017.
I contested this with them in 2019 because the original lender had defaulted it around 2009.
They agreed to removing the default after I supplied them with a copy of the original default letter from the original lender.
I have not paid anything off the debt since December 12th 2016 and the only contact I have had with them was regarding the default.
Would this debt be statute barred now or would my discussions around the default reset the clock
I look forward to your help
Clive
Sara (Debt Camel) says
It may depend on how you worded the default discussions.. but why do you care?
Fraser says
I have a 10K credit card debt which I treat as being statute-barred.
I last made an intentional £1 payment against the debt in mid-2014.
A CCA request was put to the lender in early 2016, who then wrongly allocated the £1 postal order for the CCA as a payment against the debt. I queried this at the time by letter but was ignored.
From the point of my last intentional £1 payment (2014) to the present time, no legal action started either prior or since.
From 2016 no communication either way, no calls, and no letters other than always receiving a monthly credit card statement. Always showing the same balance now as it did after the £1 postal order for the CCA request in early 2016 was wrongly applied as a payment against the debt amount. The period this covers is 7 years.
Understanding the debt is statute-barred regardless of which starting point I use. (i.e mid-2014 or early 2016)
Should I say nothing, and just continue to receive the credit card statement every month?
Or, should I contact them advising it’s statute-barred?
I feel the answer is to ‘Say Nothing’ but want to double check, whilst wondering why the lenders’ systems are not highlighting to them it’s statute-barred. Plus what’s the point in still sending statements if seemingly have no intention of making contact with me?
Sara (Debt Camel) says
As the article above explains, it’s not always easy to be sure a debt is statute barred. I suggest you talk To National Debtline about this. They have a template letter you can send if the debt is statute barred.
Michael says
Hi,.my partner had a debt with a marbles credit card. She had never made a payment towards the card as her circumstances had changed after using the credit. She then completely forgot about it and never heard anything in over 6 years when a collection agency bought the debt. She was abroad when a court paper arrived threatening action but with no court date. And as she was away for over a month she didn’t receive the ccj created by a court hearing she wasn’t aware of.until.shr returned to the UK. She spoke to the collection agent and questioned the debt and also the debt being statute barred. They provided proof of the original credit agreement and stated that it was not statue barred because they didn’t put the account into default until 12 months after the first non payment.
Does anyone know if there is anything she can do? Any advice would be welcome as this debt will tip the scales in a bad way. Thank you in advance.
Michael says
Hi again, I may have found an answer to a different question which may change things. Because she was abroad and didn’t know there was a claim to respond to, it was obviously a default judgement, so she should be able to ask for it to be set aside, because she didn’t have change to put in a defence.am I correct?
Sara (Debt Camel) says
How long ago was the CCJ?
How long ago was the account opened?
How long was she abroad for?
Does she have other similar debts that she has forgotten about?
Michael says
Hi Sara,
Thank you for your reply. The CCJ was given in July 2022. The account was opened in June 2016 and no payment ever made nor any contact sent to the card company. She was abroad for 2 months. No other debts have been missed.
I think the debt should have been statute barred but the card company started the 6 year clock in June 2017 apparently. I thought it was supposed to start when the account went into default, which I assume would be 2 or 3 months of non payment.?
Best wishes
Michael
Sara (Debt Camel) says
Being abroad for 2 months and the CCJ being quite recent may well be good grounds to have the CCJ set aside – National Debtline on 0808 808 4000 can advise on this.
Also talk to them about the statute barred issue – as my article above explains, it isn’t simple.
If the CCJ is set aside then the creditor will usually restart the court case unless you can settle the debt or make a suitable payment arrangement. Statute barring would be one possible defence. You said “They provided proof of the original credit agreement” – was that actually a copy of the CCA agreement? If not, that may be another defence.
Michael says
Hi Sara,
I wasnt aware you have to pay £275 to apply for a CCJ to be set aside. If we are to do this, would it then allow time to make a payment arrangement against the debt if it is not shown to be statute barred? If so what is the minimum a creditor has to accept, debt is about £1500.
Thank you in advance
Michael
Sara (Debt Camel) says
Did National Debtline think the date may be statute barred?
That proof of the credit agreement – was that a copy of the CCA agreement?
Michael says
Thank you very much Sara, this is very much appreciated. We will speak to National Debtline tomorrow when shes back from work. I will let you know how we get on.
Kath says
Hoping for some advice or links to some.
I used to have a La redoute account. I am now getting chased by BPO saying i need to pay up and even offer a discount to do so.
However, i am sure the debt is stature barred. I logged into my account which shows the last payment was 2016. With it being so long ago i can’t remember if i paid anything to a debt collection after this.
I presume i write a prove it letter but confused as do i write to BPO or La Redoute. What do i put in the letter, do i sign it?
Sara (Debt Camel) says
Does the account show on your credit record? Is there a default date on it?
Kath says
No. I was hoping it did.
I am still able to log into the La redoute account and it says last payment was due in early 2016.
I can’t remember if i paid any debt collectors after that and really think i didn’t.
Sara (Debt Camel) says
It’s good news if it doesnt show as that suggests a default date was added more than 6 years ago.
I suggest you ask BPO to supply a statement of account for the alleged debt. Use that word “alleged”.
kath says
Thanks
am sure i read somewhere not to sign it?
Sara (Debt Camel) says
Just use the word alleged – that shows you are not acknowledging the debt. And ask by email – it’s cheaper & you have a recoerd of when it was sent.
Stuart says
I had a ccj back in 2010 with HSBC for £4400 unsecured credit card. I am no longer able to work due to mental and physical health issues, I have no savings or valuable assets. I have been constantly bombarded for 13 years with letters and phone calls from Robinson Way, and now Lowell finance. In that time I have never responded, acknowledged or made any payment of the CCJ. However after reading on line about ccj ‘s becoming statute barred after 6 years, I downloaded a template not admitting liability and asked them to supply proof of the debt and stop contacting me. They have responded saying the CCJ is not statute barred as the ccj dated 24/05/2010 and litigation has already taken place. The debt is no longer on my credit file…They have said they will cease collection activity for a period of 30 days for my response. If they hear nothing within 30 days they will contact me again. I have had years of fear and stress of the thought of bailff’s banging down my door and am worried I may have now given them ammunition to pursue me further. I wish I had not contacted them. Is there a realistic chance they will apply to the courts to enforce this debt and is there any way I can write it off once and for all…I am on ESA and PIP for mental health issues and would really appreciate some advice. Does me contacting them although not acknowledging liability allow them to reset the clock for another 6 years?
Sara (Debt Camel) says
CCJs do not become statute barred. The “6 year clock” has no meaning for a CCJ, so nothing you have done will have restarted it.
I suggest you contact Lowell and ask for your debt to be written off. See https://debtcamel.co.uk/debt-options/less-common/write-off/. You will need to give details about your mental health. If you prefer you can go to your local Citizens Advice and ask if they will write the write off request for you.
Nikki says
Hi Sara,
I know that a ‘last paid amount’ will re-set the 6-year timer, however, what if this payment bounced, and therefore not taken.
Would it still be classed as an acknowledgment?
Thanks
Sara (Debt Camel) says
If your statute barred calculation needs to be accurate to the last month, I think you should talk your situation through with National Debtline on 0808 808 4000
Sab says
Hello,
I owe approx £42k (£58k initial amount) in credit Cards and 1 loan with 9 different lenders. I initially defaulted in September 2017 and have since been on a Debt Management plan with StepgChange. Making payments every month (not a single missed payment since).
Couple of the creditors send me a default notice every month.
Question 1: Will my debt ever be Statute Barred? As I have been making payments every month I understand this restarted every month.
Question 2: Once the 6 years are up from my initial Default notice does this mean my credit will start improving even though the debt is outstanding? and I’m making regular payment?
Question 3: I want to get a mortgage in the next year or so. If I contact my creditors and offer a settlement figure (partial payment) will my credit start improving once I have made the partial payment to settle my debt?
Question 4: How long will it take once I make the settlement payment for my credit to improve and my debts to fall off?
Thanks
Sara (Debt Camel) says
Q1 no
Q2 check the default dates on your credit record – the records will drop off 6 years after that date. If there are any debts that do not have a default date, just marked as in arrears or payment arrangement, these will not drop off until 6 years after they are settled. You can ask the original lender to add a default date back near the start of your DMP – this will temporarily make your credit score worse, but it will then recover much sooner when the defaulted debt drops off.
Q3 settling a debt in full or partially does not improve your credit score. But it will make lenders much more happy to lend to you. For a mortgage, if the debt has dropped off your credit record AND been settled at least 6 months before a mortgage application (so the mortgage lender doesn’t see it on your bank statements) then that is normally fine.
Q4 defaulted debts drop off after 6 years, settled or not.
Sab says
Thanks Sara
Last question
I’m going to approach creditors with a full and final settlement figure.
What’s the % i need to offer to start with?
Sara (Debt Camel) says
There isn’t a simple answer to this. Where has the money come from? How many of the debts have been sold to debt collectors? Have any of them ever offered you a settlement?
Sab says
I’m going to get funds from my mother who has agreed to give me to pay off the debts and start a fresh.
Out of the 9 creditors all of them have now got either Moorcroft, PRA, Intrium, Westcroft dealing with the debts.
Does that mean the debts are sold off to them?
PRA and Intrium have offered settlement at 60%
The rest haven’t sent any offers
Sara (Debt Camel) says
You need to make it clear that the money is coming from your mum only if it will enable you to settle the debts.
I would probably start with a third.
Thomas says
I have received a letter (Formal Notice of Appointment) related to the Thames water bill and it was bought by another company. Now they have used another company to recover this debt.
1. the letter says that I entered a contract with Thames Water on December 2014
2the letter also stated that this debt was bought by another company and the written notice of assignment was sent to me in July 2022
3. I received a letter of formal notice of appointment from a debt collector on behalf of the company which is the current owner of the debt
Background
I lived at the address since December 2014 and had gone through financial difficulties and was evicted in April 2017.
I did not contact anyone regarding this water bill since April 2017
My question is whether this debt statute barred debt or not. because they mentioned in the letter they may consider county court proceedings.
Thank you so much for great service in advance
Sara (Debt Camel) says
What period does this debt relate to? Had you ever paid a water bill?
Thomas says
Thank you so much,
They only said that I entered a contract with Themes Water in December 2014.
I paid some of it but it all happened before April 2017 because I was evicted in April 2017.aftermath I have moved to different place
Since then I never pay or contact anyone regarding this bill and I received a letter today this month from a company called Moriarty Law.
Sara (Debt Camel) says
I think you need to find out what years this covers and ask for copies of the bills. At the moment you have no idea what they billed you for and it may go beyond April 2017. Then talk to National Debtline on 0808 808 4000 about whether any part of this may be statute barred.
Thomas says
Thank you ever so much ,I called the original creditor (Thames Water) , they said that bill was issued in October 2017, it means, 6 months after I left the property, so
Can they still take court Action? What is the best option would be for me
Thank you
Sara (Debt Camel) says
ok, did they say what dates the bill covered? What matters is if it stopped – as it should have – the day you were evicted?
Thomas says
Thank you,
I asked Thames Water to send those bill in email and they did
My final bill issued in October 2017
But that bill only covers April 1st- April 6 th 2017 plus previous month outstanding
But bill dated on October 2017 but I was
not charged after April 6 2017.
Sara (Debt Camel) says
Ok so the bill sounds correct. Talk to National Debtline on 0808 808 4000 about whether it is statute barred and your options if it isn’t.
Thomas says
Dear Sara
I asked national debt line whether it is statute barred debt and actually I had to contact two different advisors at National debt line and both of they gave me two different answers.
One said you did not live after April 2017 so you can argue as it is statute barred debt and second advisor said that it could not be as the final bill was issued in October 2017
Under the limitations act 1980 , the count down start from last cause of action accursed. As this is a simple contract, normally it would start from the day the Default Notice was issued.
In my case, I was issued one default notice in November 2016 and one in July .They also registered a payment default in my credit report August 2017.
Then , in October, they adjusted the bill from 1000 to 730 and sent it as a final bill in October 2017 and then again sent me a default notice in December 2017 for the same account.
So I was received a default notice and my credit file got defaulted before the final bill arrived.
I just wondering when was he cause of action accused.
Is it worth sending them a standard letter stating statue barred debt
Thank you so much and sorry to be a pain.
Sara (Debt Camel) says
second advisor said that it could not be as the final bill was issued in October 2017
6 years from the date of the final bill is normally quoted for water debts. But the company having amended a previous bill may be a complication factor here and I will not say here whether I think a debt is statute barred.
The term Default Notice isn’t usually used in connection with water debts.
I suggest you go to your local Citizens Advice and ask for their help. They can access the national specialist debt advice service if necessary.
MikeG says
I’ve just taken a call from barclays re claiming back past charges and interest. Barclays closed the account back in 2017 and by close I mean hand over to another branch of Barclays to recover the debt (I had moved to a debt management plan)
The call was to inform me that I had no recourse to claim back charges as it was over 6 years ago (we’re talking 2003 to probably 2017 before the account was closed. I had sought to claim the repayments after seeing an article on Mondaysavingexpert so have only just found out about it.
Given the account was closed by them and still retained internally tor recover the debt (over draft which was paid in full) does that statue barred element still exist?
I just want to understand whether it is worth escalating with the Ombudsman?
Thanks in advance
M
Sara (Debt Camel) says
“Statute barring” is a term relating to when a debt is legally enforceable – it doesn’t apply to complaints.
The Financial Ombudsman has rules relating to when it can look at a complaint. It can look at anything that has happened in the last 6 years and it can decide to look at events before that if you have only recently become aware that you have a cause for complaint.
So in this case you can tell the Ombudsman how (where and when) you found out about these complaints and say that before that you were unaware that a bank should have checked your overdraft was affordable and it should have reviewed this annually. So when you enter3ed a DMP you knew you were in finical difficulty but you thought it was your own fault and you did not know Barclays were partly responsible through not making adequate checks, so you had no reason to make a complaint.
You can also point out that you had taken debt advice and StepChange/Payplan/whoever did not mention that you had a cause to make an affordability complaint.
Mikeg says
Hi Just as a follow on from this, and you might not be able to comment, but tracking back i can see that a failed missile bank account had the following feedback from the ombudsman.
Barclays has suggested that as the Additions account was sold in branch it wouldn’t have been recommended to Mr M. And I haven’t seen anything to suggest that a detailed assessment of Mr M’s circumstances was carried out at either, which is what should’ve happened if the accounts had been recommended.
So I haven’t seen enough here to be able to say that the account was recommended to Mr M.
This means that Barclays didn’t have to check if the account was right for Mr M and it was up to him to decide this for himself by thinking about what it came with and his circumstances at the time. But Barclays did have to provide him with clear enough information to do this.
Later on the ombudsman does mention that PPI might be something I could complain about but no mention of an assessment.
Would it be worthwhile me highlighting the above two paragraphs from their response, to me it is mixed as i feel like the ombudsman was saying that they would have assessed me if it was done in branch but they didn’t have to assess me because it was over the phone?
Sara (Debt Camel) says
a failed missile bank account
is that a typo for something?
Later on the ombudsman does mention that PPI might be something I could complain about but no mention of an assessment.
how long ago was this? FOS hasn’t looked at PPI complaints for years,
Mikeg says
Sorry Miss sold account. The complaint was back in 2017, but the FOS sides with Barclays.
For me though given I need to prove that I did not know about the overdraft affordability, I was wondered whether the fact the the FOS said I had a right to complain about PPI but earlier on acknowledged that Barclays hadn’t carried out basic checks on my affordability I was wondering whether it helps my argument that I didn’t know I could complain.
Sara (Debt Camel) says
so you originally made a complaint about mis-selling in 2017 and that was the Ombudsman’s reply to you?
If that is right, you cannot make a similar complaint now.
Tasha says
Hello Sara,
I have the same situation as Thomas with Thames Water few days ago, even the same debt collectors Moriarty Law, who are very aggressive. I’ve moved out of the apartment in November 2016 and made last payment in December 2016. Since then I don’t believe I’ve paid them. If I call Thames Water and ask for the bill that wouldn’t be considered as accepting the responsibility for the bill and resetting the clock, would it? Also, I’ve moved address in recent months, so their letters are still going to the old address, but I can still collect the post. If they send court papers to the old address, would I be responsible to collect it? I don’t want to give debt collectors my new address or any of my details really. Thank you
Sara (Debt Camel) says
So you think you paid the last bill?
Tasha says
I probably had a payment plan set up, but stopped paying after moving out of the apartment, which was at the end of 2016. I’m afraid I’ll open a can of warms if I start calling and checking what I owe them. Debt collectors sent me 30 day notice of intention, but I’ve moved from that address, too. Someone just collected the post for me. Can i just ignore this letter since i dont live there anymore? What is the best way to deal with that? Thank you
Sara (Debt Camel) says
If you ignore the letter they may go to court for a CCJ, and then bailiffs always seem to manage to find you…
I suggest you talk to National Debtline on 0808 808 4000 about what your options are and the pros and cons.
Martin says
Hi, I live in Scotland and had a TSB Credit card which was statutory barred over 2 years ago as no payments have been made in over 7 years. TSB have now done a rectification and have acknowledged they are due me a refund as a result of incorrect charges back to 2013. They say the refund is £4k but they have sent it to the third party collectors instead of me. Do I have a case to have this money refunded due to the debt being barred:prescribed and should I contact the collection agency or TSB. Thanks
Sara (Debt Camel) says
The legal situation in Scotland about statute barred debts is different from England. I suggest you talk to National Debtline on 0808 808 4000 or post in the comments on this blog by a Scottish adviser https://www.advicescotland.com/home/statute-barred-debts/.
Lis says
Hi
I’ve just been informed that Aqua have put my account as a Default as I’ve missed 6 payments due to trying to make an Irresponsible Lending complaint against NewDay
Unfortunately I didn’t win but could go against the F/O descion. I’ve contacted Aqua to set up a payment plan and this is how I found they have defaulted my account, she informed me to make payments on my account as yet it hadn’t been sold on, but it could.
I’m now concerned about the Stature Barring…as I’m slightly confused due to not having a payment plan with Aqua in place? X
Sara (Debt Camel) says
Aqua have put my account as a Default as I’ve missed 6 payments due to trying to make an Irresponsible Lending complaint against NewDay
That is to be expected – if you stop paying a debt while there is an affordability complete will harm your credit record. The negative marks are only cleared if you win your case.
Unfortunately I didn’t win but could go against the F/O descion.
Do you mean you could ask for your case to be looked at b6 an Ombudsman? Do you want to say some more about it if you arent sure whether to do this?
I’m now concerned about the Stature Barring
Statute barring is only of interest when you haven’t paid the debt for quite a few years. If it has only been 6 months it is relevant to deciding what you should do next.
Were the Aqua payments unaffordable? Do you have other pro debts as well?
Éva says
Hi,
In 2012/13 my ex used my name and put a £7000 dept on me, the only time I found out when I checked my credit report there was no communication from the company at all,I spoke to the company and they just didn’t want to let listen to me they passed it to a collection agency (Lowell) the dept become £9000 then they got a CCJ against me and the amount become £12000 they only wrote to me once after that, after 6 years it’s all cleared of from my credit report and haven’t heard anything since
Now after 2/3 years Lowell just sent me a letter saying that the dept (£9000) is returned to them
What can I do so they will leave me alone and stop harassing me?
Can you offer me some advice please
Sara (Debt Camel) says
What was the date of the CCJ? Have you moved? Lowell seem to have your current address.
Éva says
CCJ was put on Jan 2016, that time I lived in a different address
I live in my current address about 6 years now
Sara (Debt Camel) says
what is your current financial situation like?
Eva says
I am a single mum just barely surviving and I am not prepared to pay this money as it’s not mine.
And by Lowell saying it’s passed back to them sound like they want to start everything all over again
Sara (Debt Camel) says
I am not prepared to pay this money as it’s not mine.
I understand why you are saying this. But if you cannot pay the debt, then that is a massively simpler argument to make (because the argument that this is unfair should have been made many years ago) so I suggest you concentrate on that.
CCJs never become statute barred. But after 6 years they become much harder to enforce.
I suggest you talk to National Debtline on 0808 808 4000 about this old CCJ. Ask then to help you draw up an income and expenditure statement that shows you are unable to make any significant payment to this debt.
Then I suggest you write to Lowell and say:
– they have left it an unreasonable length of time after the CCJ before contacting you – you had assumed the debt had been written off as it had been so long. Say this is not treating your fairly
– say National Debtline have told you that Lowell would have to go back to court to try to enforce this because it is over 6 years
– say that you are unable to make any significant payments to the debt as you are a single mum barely surviving – attach the I&E from National Debtline to prove this
– ask them to write off the debt in accordance with the Consumer Duty to deliver a good outcome to a retail customer.
Let me know how this goes!
–
Peter says
Hey
I have a question, be amazing if it can be answered as I can’t find the answer.
I had a old gas debt from a property in my name that my ex-GF ran up so I refused to pay, I had just forgotten it was in my name.
Eventually after a couple of years they tracked me down, never acknowledged it though.
It is now about 4 years old, maybe a little more.
The sold it onto or instructed a debt collection agency to chase it.
I still have not acknowledged it.
However that debt collection agency has place the default date on my credit file as January this year (2023) even though the debt was from 2019 or so.
I want them to change that otherwise it won’t drop off my credit file in a few years but I also don’t want to acknowledge the debt?
Any thoughts ?
Sara (Debt Camel) says
I don’t think there is a way to get them to change the default date without acknowledging the debt.
In this sort of situation you need to bear in mind that the debt collector may go to court before the debt becomes statute barred. And it can be hard to be sure at what point it does become statute barred. Talk to National Debtline on 0808 808 4000 to discuss this.
Peter says
Yeah that’s what I thought, thank you for replying.
Something I forgot to mention was the debt was showing on my credit file against British Gas with the correct date. It was only when the debt agency took it over the original debt was removed from my file and replaced with it showing as a debt to the debt agency with the new date !
Sara (Debt Camel) says
Well that is wrong… but it’s still hard to challenge it unless you give up on hoping it will go statute barred (which is unlikely anyway)
Kel says
Hi Sara, I took a loan out with Welcome Financial Services Limited around 2008/9, I have not made a payment since around 2011, debt was passed to PRA group years ago, I have never spoken to PRA nor acknowledge the debt with them, nor ever made a payment to them, they send me regular emails about the debt offering discounts. Asking me to pay. Can I ask them to stop emailing me as surely the debt is now statute barred? Debt is not on any credit file nor was I ever taken to court for the debt. Please advise the best cause of action, thanks
Sara (Debt Camel) says
Talk to National Debtline on 0808 808 4000. If they agree it is statute barred they have a template letter you can send
Phinn says
Hi Sarah,
Last year in April I sent a letter to Lowell claiming a debt to be statute barred – I hadn’t paid anything as far as I knew following the failure of an IVA 6 years ago – as it turns out Lowell sent a letter back saying a payment had been made (by the IVA company) in September 2016. Up until September 2022 they sent me a number of letters about this debt offering ridiculously massive discounts – so I had that that September 2022 was still the cut off point after which the couldn’t pursue me)
So I’d like to know if they can still pursue me for this debt (unfortunately, this is by far the largest debt they are pursuing me for)? They are chasing me via email for a repayment plan – along with 5 other debts which I now know are statute barred thanks to them telling me about the September 2016 payment date (all these 5 other debts must be statute barred as I never made payments and I never sent any “Statute Barred” letters for them prior to September 2022 (i.e. they are all over 6 years old and no written letter sent by me claiming them to be statute barred)
The debt was for an unsecured personal loan
Any advice you could provide would be most welcome
Sara (Debt Camel) says
One option is to ask Lowell to produce the CCA agreement for the loan. See https://debtcamel.co.uk/ask-cca-agreement-for-debt/
When you say your IVA failed – was that the date it actually failed – you received a letter of termination and the failure report?
What is your current financial situation like!
Phinn says
Thanks for the response, Sara,
Unfortunately I have no official letter as to when my IVA actually failed as I needed to move accommodation at the time – from what Lowell has said I think the last payment from the IVA must have gone out to creditors in September 2016.
I’ve checked emails and do have an email from the IVA company stating “Notice of Breach which was issued on 6 October 2016 and is due to expire shortly.”
I’ll look into https://debtcamel.co.uk/ask-cca-agreement-for-debt/ – I’m frantically trying to find the letter Lowell sent me in return for my mistimed “statute barred” letter , I recall it was very brief and there was no official documentation sent with it as far as I remember,
Sincere thanks for all the advice you provide on this site
Sara (Debt Camel) says
So it sounds as though Sept 16 was probably the last IVA payment, no grounds to dispute that.
Lowell wouldn’t have had to send any documentation with their letter unless you had asked for something.
What is your current financial situation like?
can I ask if you are buying or renting?
Phinn says
Thanks Sara,
yes, I think Sept 16 was the last IVA payment
My current financial situation is not great – I’m currently paying off a £9800 CCJ as well as financing other smaller debts from Lowell (taken over by Lowell from Hoist) and the County Court.
I haven’t borrowed at all on credit cards or loans since 2016
I’m renting
Phinn
Sara (Debt Camel) says
Because of the large CCJ, I think you should talk to National Debtline on 0808 808 4000 about your options for all your debts.
Phinn says
Thanks for the advice, Sarah, I will do – Phinn
Phinn says
Hi Sara,
I hope you’re well – I have a follow up please on my questions above. I’ve today received 6 separate letters from Lowell (including for the main debt I mentioned above)
My follow up question is – the main debt was the only one I sent the “Statute Barred” template letter to Lowell for – including the exact amount of the debt and the Lowell reference number – so I’m hoping this should not have triggered the “reset” for the other 5 debts they are pursuing me for?
we’ve already established the last payment that could possibly have gone following my IVA failure was in 2016
Many thanks,
Phinn
Sara (Debt Camel) says
A contact from you about one debt cannot have acknowledge debts you did not mention.
Have you talked to National Debtline about your situation?
Phinn says
Thanks Sara,
So the last time any payment would have gone to these 5 other debts would also have been in September 2016 (that was the last payment date from my IVA) so I think it’s likely the 5 other debts are statute barred by now.
Only the main debt could be ‘reset” because of my mistimed “Statute Barred” letter that I sent ? I’ll use https://debtcamel.co.uk/ask-cca-agreement-for-debt/ in this case
Thanks
Phinn
Sara (Debt Camel) says
Well talk to national debtline about these other debts. And your full situation.
If you can’t pay the debts that are not statute barred (that other large one and the CCJ) then you may be better off finding a debt solution for all of them, not arguing about statute barring on a few where it isn’t going to transform your situation.
Phinn says
Thanks very much, Sara, I will do – Phinn
Michael says
Hi Sarah
If a debt has been sold to a debt collection agency, does contacting the original creditor “reset the clock” with the debt collection agency?
The debt in question was sold to PRA Group who haven’t been able to produce CCA – its been 3 years since I contacted them. However, I want to complain to original creditor as I think I have a strong case to have the Default date backdated so it would drop off my credit file.
Just wondering if this is too risky as it may reset the clock – even though I am not contacting PRA Group.
Hope that makes sense…
Many thanks
Sara (Debt Camel) says
What is the current Default date?
Why do yo7 care about resetting the clock for an unenforceable debt?
Michael says
Hi Sara
The Default as it stands will drop off in just over a year – so getting it to drop off sooner appeals as I am hoping to get a mortgage in 2024. I have had success with 3 other creditors over the past few months who have all agreed to backdate defaults – these have all dropped off my credit file now as a result. The only one left now is PRA Group and thats why I was hoping I could contact the original creditor without resetting the clock with PRA Group (Both original creditor and PRA Group show on credit file as defaults)
In regards to caring about the unenforceable debt – PRA ring me every day – I’ve blocked their number but I still get an automated call every day despite them acknowledging the debt in unenforceable, I also fear they may just sell the debt to another collector and I have to go through the whole CCA request again etc – I am just eager to get to the 6 years so i can send them a statute barred template letter.
Sara (Debt Camel) says
It’s pretty hard to see how you can ask for a default date to be changed without acknowledging the debt. And although you would Be talking to the original creditor if they agree they would have to inform PRA to get them to change the default date.
Michael says
Thanks Sara – I figured as much but was just wishful thinking on my part!
Thanks again for all your advice….
Sam says
Hi Sara,
I received a text message yesterday from Opos. It said they had a settlement offer for me on a debt. When I click on the link it does have my name and an address I lived in about 19 years ago. I did have bad debt at this address but I last made a payment about 16 years ago and haven’t heard a thing from the creditors.
On the link they sent in order to go any further and see the the details of the debt I have to accept the details on the screen are mine in order to proceed and I’m worried that would be me acknowledging the debt.
I suspect that this is just a fishing expedition that they’ll have done on thousands of old debts to see who bites. I absolutely have not made any payments to any debts at that address for at least 16 years or corresponded with them in anyway. Should I just ignore?
Sara (Debt Camel) says
If you haven’t made a payment for 16 years it is probably statute barred (unless there was a CCJ). If it is already statute barred than nothing you can do now will “unbar” it.
Did what you could see give details of the debt – balance, who the original lender was etc?
Sam says
No all it gave was name, old address and date of birth.
I’ve never had a CCJ on my credit report and they don’t have my current address so I am tempted to ignore it so they don’t start bothering me at my current address.
Sara (Debt Camel) says
Well you can’t acknowledge a debt when they havent even told you waht it was!
My preference would be to tell them that you have no memory of that debt, after all this time it is likely to be statute barred and ask them to provide details. If you ignore it they may still go to court and then bailiffs always seem to be good at finding people who have moved…
Paul Ellwood says
Lowell have been chasing me for ages and now I also have a company called Overdales who are managing one of the accounts. These are for 3 mobile phone accounts that I supossedly took out. I have asked them to prove that I owe these payments and even asked for the statements from the Mobile provider. On all of them it says there were no calls, texts or even data used. They have 2 different adresses both of which I have lived at but they had shared letterboxes so it is entirely possible someone got my details and took out these accounts.
I have not acknowledged any of these and in one letter Lowell stated the start date, termination date and default date for the accounts. They are:
BT 27th April 2017
Vodafone 2nd May 2017
Three 17th January 2018
Are these now statute barred?
Sara (Debt Camel) says
Are those the default dates?
Paul Ellwood says
Yes they are Sara
Sara (Debt Camel) says
Then they may well be statute barred. Talk to National Debtline 0808 808 4000 about them – ND have a template latter for statute barred debt which you can send if they think the debts are statute barred.
Paul Ellwood says
Thanks for the advice, I’ll give them a call :)
SeekingDebtHelp says
Hi Sara,
My partner has recently had a letter from Lowell. It is one of those statutory “goodbye/hello” letters with a discount, but we strongly believe the debt is statute barred at this point.
It was originally a store card or credit card (we don’t recall which). We are unsure of the default date but we presume it was defaulted years ago as she never made a payment on it and it has been sold between various debt collection agencies over the years. The debt was originally from around 2010. I don’t think it would show on a credit record anymore at this point.
She hasn’t acknowledged the debt or made a payment on it, ever. I have checked the registry of judgements and there is no CCJ in her name for this debt at any previous addresses.
Would it be worth sending one of the template letters to Lowell informing them that the debt is statute barred and she won’t be paying? OR perhaps a non-prejudice offer of 5% of the amount?
Thanks
Sara (Debt Camel) says
Talk to National Debtline on 0808 808 4000 about this – they have a template letter for statute barred debt that you can send if they agree it is likely to be statute barred.
SeekingDebtHelp says
I’ll ring tomorrow.
Lowell, in the letter, don’t mention court action or any consequences. The letter is aimed at settling the account they have. It’s been over 10 years so we’re pretty sure this has passed the limitations period and unenforceable. We’d like to just make that clear to Lowell.
If we did that, can they still sell it to another collection company?
Sara (Debt Camel) says
Yes but you just send them the same letter. This doesn’t often happen.
Paul Ellwood says
Haven’t heard anything from Lowell recently, and I’m going to check my credit file to see if the debts are there.
Pietro says
Hi Sara
I’m trying to understand exactly when debts become statute barred under the six year limitation period. I understand the conditions that may extend it such as acknowledgement or making payments but it’s the exact date and time that’s confusing me. So to give an example, if we said the last payment made was 30 January 2018, would the debt have become statute barred at 0001hrs this morning, at 0001hrs tomorrow morning or some other time?
Sara (Debt Camel) says
has a default notice been issued?
Pietro says
Over a decade ago by the original lender. Since which time the debt has been sold multiple times. The odd statement several years ago but nothing else since the last payment on 30 January 2018. I gave this date purely as an example to try and get my head around the way the date is calculated.
Sara (Debt Camel) says
I suggest you talk to National Debtline if you want more details.