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
Chris says
I sent a statute barred letter to Cabot and rather amusingly they wrote back saying they “do not consider themselves to have breached any laws” which is hilarious given they specifically chased a debt contra to the laws listed in the National Debtline letter. They’ve gone on to close a futher 9 accounts that I didn’t even know existed with them!
Steve says
Hi Sara
I have 2 debts currently with PRA originally Natwest. I did a CCA just over a year ago and they have both been acknowledged by PRA as being unenforceable (PRA send me an email every 7 days asking for repayment and on it there is a statement about the debt being unenforceable). Haven’t made payment to the debt for several years. The have both dropped off credit file in March 2023.
I last contacted them 31/12/2022 when I read that everytime I email them I restart the 6 year statute barred timer. I don’t live in the UK, PRA are aware of this and I have just moved house – I assume I have responsibility to inform them of my new address?
So how do I inform them of my new address without acknowledging the debt and restarting the statute barred timer?
Also, when the 6 year timer is up, how do I again contact them without restarting the whole thing again?
Thanks
Steve
Sara (Debt Camel) says
when did you ask for the CCA?
Steve says
February 2022
Sara (Debt Camel) says
do you have a customer number with PRA? as apart from the reference from the individual debts?
Steve says
Nope only the refernces for the debts that are sent on the weekly automated emails.
The last time I was paying them which would be 2021, I corresponded through email and they set up direct debits through email. They have an online portal on their website where you can manage your account but because I live abroad they said I was unable to register as it needed a UK postcode, so I always contacted them through email whenever I changed my address (up until now).
Sara (Debt Camel) says
could you use a relatives address?
Steve says
The issue isn’t about using an address. They accept my foreign address.
The issue is that I have moved and now I assume I have responsibility to inform them of my new address.
How do I inform them of my new address without acknowledging the debt and restarting the statute barred timer?
Sara (Debt Camel) says
I get that. But if you had A UK address you could just change it on the account online? Without having to reference a debt and potentially acknowledge it?
If you can’t then you have to choose between:
– telling them you have moved and saying that communication doesn’t acknowledge the debt (which may not work legally – talk to National Debtline about this and how to word it)
– not telling them
Joe says
Hi i received a letter from from Lowell trying too collect an old debt from 2009 from Vodafone for over a £1000 pound I can remember having a contact with Vodafone but didn’t know I owed them a balance
Lowell are saying NO payment has been made on the account since 2013 and obviously this account is no longer on my credit file can they continue to chase me for this debt after 11 years??
Sara (Debt Camel) says
Sounds as though it may be statute barred. Ask National debtline, and they have a template you can send Lowell if they think it is statute barred.
Tina Arena says
I have just had a reponse letter from Capquest about a debt from 2006 that they bought. (Statute barred).
They said they confirm this account has now been closed, as a result of it being statute barred and I will not be pusued for any remaining balance on this account.
Gabe B says
Careful of Capquest.
They will resell it to other companies … often owned by their parent company.
They are tricking you into panicking and admirting the debt.
I started ignoring them.
You can tell the difference as they “invite” you to pay the debt they have bought … instead of making threats.
They try to manipulate you.
I sent one letter saying it was SB’d and ignore every one after that.
Samantha Mulling says
Hi Sara,
Really need a bit of advice as I’m confused. I’ve had a stand-off with Santander for a few years on an account that defaulted in Jan 2019. I lost a job and couldn’t pay for my car finance asked them for support even offering to sell the car as the value I was going to sell it for would be more than them sending it to an auction and they essentially refused and it kept piling on it went downhill from there. They kept adding interest after a default and the car going back which I refused to pay (possibly in the wrong here I get it)
They’ve now sold the debt to link financial and from my understanding having not paid a penny directly to the debt (not sure if they can count giving the car back as me paying) since Jan 2019 theres’s about 9 months left until it reaches 6 years on my credit file
Link have apparently passed this onto DWF so I’m not sure if I can stall them or pay towards the debt but not reset the clock. I’m happy paying what’s fair but the idea of resetting the clock or having this all stay on my record is frustrating as the mark really limits me financially.
I was going to go to the ombudsman as a way of stalling to be honest. For clarity I’m not running from responsibilities, I just don’t want to get trapped in a loophole that’s been ruining my credit for 6 years
Any advice welcome
Sara (Debt Camel) says
How long had you been paying the car finance when you defaulted?
What were your finances like when it started ?
What date was the car handed back?
Samantha Mulling says
Thanks for getting back to me!
1. I had been paying for about 2 years at that point
2. When it started I was earning decent, I was in a management position and earning about 40k annually and went from this to basically scrambling and having to go on jobseekers in a matter of months.
3. The car was handed back in 2021 about a year after the default as I was going back and forth and my assertions were correct, instead of selling it for about 10k which was the market value they auctioned it for about £4k and levied the rest of the debt to me and kept charging me interest ever since.
Sara (Debt Camel) says
It doesn’t sound as though you are likely to win an affordability complaint if you think the repayments were fine before you lost your job.
Did Santander tell you about your right to Voluntary Terminate the car finance when you were in difficulty? That would have restricted your liability to half the cost of finance less what you had already paid. It sounds as though you were treated very poorly at that time . You can complain about that. (1)
You can also complain if your think the car was sold as a very large undervalue. It would have been better to have done this sooner, but kicj this off now and send it to the ombudsman if Santander reject it. (2)
I am surprised that Santander carried on adding interest after the car was handed back. I suggest you phone National Debtline on 0808 808 4000 and ask them if they think this was fair. You may also be able to complain about this. (3)
I suggest you talk to National Debtline and then make a single complaints covering (1), (2) and possibly (3).
In addition, it may be possible that you could get some money back from a discretionary finance commission claim. See https://debtcamel.co.uk/car-finance-commission-get-refund/. These claims will be slow and it isn’t clear what will happen in situation where the car was handed back – but you may as well kick one off now. Also look at any previous car finance before this one and make claims about those. This is a separate claim from the ones above I suggest making. In order not to confuse things, I suggest you make a diary note for 4 months time(start of August) and then make this claim.
I do not think you can assume this debt is statute barred for 6 years from the default date. You clearly carried on having conversations about the debt and the car until 2021. Talk to National Debtline about this too.
If resetting the clock for statute barring isn’t relevant here, I think you need to reach an agreement to make monthly payments with Link.
BUT if the debt has a default date on your credit record, it will drop off 6 years after that date, even if you start paying.
Samantha Mulling says
Hi Sara,
This is REALLY amazing info and give me a lot to chase. My main concern was my credit as the mark is a stain on my credit history that was near enough perfect before and after I got myself back on my feet, so I’ll negotiate small payments while I challenge Santander to essentially stop a potential CCJ.
The answer to the above questions/comments are.
1. they didn’t mention a word about the right to voluntarily Terminate the finance
2. I will chase the car value portion because I was so upset they didn’t let me sell the vehicle when I was seeing cars at a lower quality than mine sold for much more
3. Yes they kept adding interest after the default and after the car was handed back and it kept going until recently when they sold it to Link.
I’ll start the process now, and I really must thank you for the advice and help. It’s tricky putting all the pieces together.
Thank you!
Sara (Debt Camel) says
do talk to National Debtline about the interest
Grant Whittaker says
I would add that if the car was “auctioned” for £4000 in an open auction like British Car Auctions then £4k was it’s “Value”.
Don’t confuse a forecourt price with a trade value!
I do agree that if you had paid 50% of the “Total amount payable” including any deposit paid you should have been offered a Voluntary Termination as that would have cleared the debt – this is not the same as half the payments as on a PCP with £0 deposit it can be as many as 90% of the payments but on an HP with a large deposit it can be as early as immediately.
MICHELLE NEAL says
I have old debt of 144.00 with BOP/Lantern
How do I get statue barred its been almost 6yrs since got it know this as was before this property I am in as been in this house 6 years in September
Sara (Debt Camel) says
When did you last make a payment to this? Dies it still show on your credit record?
Lee says
Hello , sorry of this is in the wrong place.
I have received in the post a County Court Claim claim form.
This relates to MYJAR and issued by TM Legal relating to a payday loan issued 11/2017, subsequently they issued a default notice 09/2018.
The debt isnt on any credit reports.
4/4/2024 I had an email saying a Letter of claim was sent – this was not received , i replied to say I believed the debt was statue barred
their response
We are aware that the correspondence you have sent, is in a format that is circulated on consumer-based websites whereby debtors are encouraged to use the templates in order to avoid repayment of their debts. We do not accept that the contents of these templates bear any particular relevance to your case.
For clarification, in line with the Limitations Act 1908, no claim may be brough after a period of 6 years from the cause of action. The cause of action in this instance is the Notice of Default served upon you by the original creditor on 24th September 2018. As such, the account is not Statute Barred.
10th June 2024 I have received a county court claim form and now i am unsure what to do next and how to complete and respond, I do not want a CCJ.
Please help
Sara (Debt Camel) says
When did you last make a payment to the debt?
Lee says
No payment was ever made. so November 2017
Sara (Debt Camel) says
Talk to National Debtline about this on 0808 808 4000.
Grant Whittaker says
At a guess, first thing is to request the CCA but make it clear you are not acknowledging the debt exists.
I don’t know if stating it was Statute Barred is “admitting” it and thus resetting the clock?
Also not true that the 6 years starts from when they say – will be from last payment OR acknowledging the debt
Sara (Debt Camel) says
Read the article above on when the 6 year time starts.
Raj says
I took out an unsecured personal loan about 30 years ago from a building society that no longer exists. After 3 months I lost my job and informed the bank that I could not make full payments but could make smaller payments until I got a new job. I did that for a while and then I could not make any further payments because I could not find a job. I sent them another letter saying that I would restart payments when I could but I never did. They sent me a few letters and then I never heard from them again. About 15 years later I got a letter from a debt collection company but I never responded. Now, 30 years after the initial loan, I’ve received a letter from a different debt collection company asking for the money. Where do I stand?
Sara (Debt Camel) says
This is likely to be statute barred unless a CCJ has been obtained at any point. Talk to National Debtline on 0808 808 4000 who have a template letter you can send.
Cv says
I accidentally paid a statue barred debt to Lowell. I was trying to pay the ccj and it went to the wrong account. Can I get them to put this money onto the ccj to clear it?
Sara (Debt Camel) says
That is unlikely.
If the debt was statute barred, making a payment will not have “unbarred” it. But it will have reset the clock it if is coming up to statute barred.
Yvonne says
I took a loan out with my deceased exhusband in 2000. Last communication and payment was in 2013 and my husband and I split not long after. Part of divorce proceedings was he woukd fully clear the balance when he retired. He remarried 2 years ago.
A month ago I was contacted by a collection agency capital securities via phone call to my mobile stating I needed to start paying this debt. I replied I do not owe the money as my ex paid in full when he retired. I did not give them any more details. I contacted my ex who stated he had tried to pay the debt but it had been sold on numerous times and had been unable to sort it. My ex at that stage was dying of cancer and died a few weeks later. As its 11 years since communication and any payment with this company is this now statute barred?
Sara (Debt Camel) says
do you have any idea when he last made a payment to this?
Yvonne says
Last payment was what I paid in 2013. He didn’t make any payments thereafter as we split up
Sara (Debt Camel) says
I suggest you talk to National debtline on 0808 808 4000. If they think this is probably statute barred, they have a template letter you can send.
If anything is produced showing that it is not statute barred, then a next step may be to ask for the CCA agreement for the debt. But the statute barred route is simpler if that works.
Yvonne Harrison says
I contacted the company who refused to discuss the loan with me as I would not give details of my new address! Even tho they discussed it Initially when they contacted me. So I cannot find out if this is statute barred or whether my deceased ex made any payments to them ( I don’t think he did). Do I need to give my current address? They have my mobile number
Sara (Debt Camel) says
what did National Debtline say?
Lukas says
Hi Sarah,
I received letter from Excel Civil Enforcement Limited – NOTICE OF ENFORCEMENT for council tax bill from around 2016. ( this look like legit enforcement letter like your examples)
I’m a bit confused. I’m not sure why someone sending me something after 8 years.
If council debt is from 2016 in not statute barred already ? I don’t want contact this people as I don’t want reset clock just in case.
I never had any court etc.. for this debt.
I had few more addresses already and this letter is for property that I was living ages ago.
Should I call them and ask for some proof of the debt? I’m not sure what to do.
I’m feeling quite stressed about this. Could you please advise me on what to do?
Sara (Debt Camel) says
were you living in that property in 2016? when did you move out?
Lukas says
I moved out of this property in 2017 , to different city , I never seen any letter that something is not paid , also my post was redirected
Sara (Debt Camel) says
I think you should discuss this with National Debtline on 0808 808 4000. If the council went to the magistrates court for a liability order, then this will never become statue barred.
Billie says
Hi Sarah,
Firstly, I want to say that what you are doing is the work of an angel. I have learned so much reading through this site! Why don’t they teach this stuff in schools??
I had a CCJ after a O2 bill went unpaid for a total of £621.40. I was pressured by a parent to allow them to take out an O2 contract in my name as their credit was awful. I escaped that abusive hell hole and went no-contact with them 8 years ago, but found out about the CCJ shortly after leaving while trying to apply for a phone contract myself.
The CCJ has since dropped off my record but, unfortunately, it looks like the debt has been sold to Lowells now. They have been hounding me every single day with calls and texts for the past two weeks, and have sent two passive aggressive letters in that time too. I’m terrified of being back in that spot, especially as my partner and I are looking in to buying our first home in the next year or so. Is there anything that I can do? Can they pursue me for this legally, or get another CCJ/Baliffs involved? I’m planning on calling National Debtline after work today
Sara (Debt Camel) says
CCJs don’t become statute barred but they become harder to collect after 6 years. Ask National Debtline about your options
Harry says
Hi, I have an old debt with PRA. Last made a payment in January 2019. No contact since then until January 2023 when they got back in touch asking for payment. I did not respond or make a payment, other than making a CCA request.
In January 2023 I made the CCA request, which they were unable to provide, so all letters from them since then say the debt is unenforceable. I have not made any other contact with them.
Did the CCA restart the limitation period, or will it expire in January 2025 after I last made a payment and admitted to the debt?
Sara (Debt Camel) says
National Debtline says “If you write to a creditor, this may restart the limitation period, depending on what you say.” Talk to them about this on 0808 808 4000.
Jordan says
I received a letter a few months ago from RBS saying that an old overdraft with them was now statute barred and they would no longer pursue it. This week I got a phone call and they left a message saying it was RBS and to contact them with a reference number. I had complained at the time about affordability, is there any risk to phoning them back and checking with the debt already having been written off?
Sara (Debt Camel) says
which came first – the affordabilty complaint or the write off?
how old were the overdraft problems?