When is a debt too old to be enforced?

Limitation is one of the few areas of consumer debt where an unhelpful email can genuinely make your position worse. Acknowledging a debt in writing, or making a payment, can restart the clock. Because of that, the order of operations matters more here than the underlying rule.

Safety

Step by step

1. Understand what statute barred means.The creditor can no longer use the courts to enforce the debt. The debt itself is not cancelled, and they can still write to you unless they are also required to stop.
2. Find out when the clock started.Usually from the last payment or the last written acknowledgement, or from the cause of action arising. Which event applies depends on the type of debt.
3. Check the period for your nation.Six years is common for simple contract debts in England, Wales and Northern Ireland; five years applies in Scotland with its own rules. Some debts, including certain mortgage shortfalls, have longer periods.
4. Know what restarts the clock.A payment, however small, or a written acknowledgement that the debt is yours. A conversation is not usually enough, but a written statement can be.
5. Do not acknowledge it while you check.Ask for information without stating that the debt is yours. Phrasing like 'I do not admit any liability for this alleged debt; please provide a statement of account' is the standard approach.
6. Get your credit file.It shows dates of default and last payment for reported accounts, which helps establish when the clock started. It is free from the credit reference agencies.
7. Check whether a judgment already exists.Limitation applies to starting court action. Once a judgment exists, different rules apply. Check the register of judgments if you are unsure.
8. Get advice before writing.National Debtline and Citizens Advice publish template letters and will check the dates with you. A wrongly worded letter can cost you the defence.
9. Raise limitation as a defence if you are taken to court.It is not applied automatically. If a claim is brought on a statute barred debt, you must raise it in your defence within the deadline.
10. Complain if collection continues improperly.There are FCA rules about pursuing debts a firm knows or should know are statute barred. Complain to the firm and then the Financial Ombudsman.

Tips

• Never make a payment 'to be safe'. It is the one action that most reliably restarts the limitation clock.
• Use a template letter from National Debtline rather than writing your own. The wording is designed not to acknowledge the debt.
• Limitation is a defence you have to raise. A court will not apply it for you if you do not respond to a claim.

Common mistakes

• Writing to say the debt is not yours to pay 'yet' — Anything that acknowledges the debt in writing can restart the period. Keep the wording neutral and take advice on it.
• Assuming statute barred means cancelled — The debt still exists, can still be reported for its normal period, and can still be pursued by contact. Only court enforcement is barred.

If it doesn't work

Questions people ask