25 Feb 2015

A question about : Statute barred debts and the Limitation Acts

Statute Barred debts.

A debt will be Statute Barred if there has been no acknowledgement of the debt by you making a payment or in writing within the relevant limitation period.

The debt would then be legally UNENFORCEABLE.

If you are in England/Wales then the limitation period is 6 years and you should read:

Link: Factsheet | Liability for Debts and the Limitation Act (England/Wales)

If you are in Scotland then the limitation period is 5 years and you should read:

Link: Factsheet | Liability for debts & the Prescription & Limitation (Scotland) Act 1973

If you feel the debt is Statute Barred, then there is a letter to write at the end of each factsheet and below.

Best answers:

  • Letter to use if you live in England or Wales.
  • Letter to use if you live in Scotland.
  • Possible letter if previous letters are ignored.
    Report them to the FCA and Trading Standards as well.

  • Hybrid letter stating that you have no knowledge of the debt AND that it would be statute barred regardless.
  • Where a debt is statute barred due to 6 years of non-payment or acknowledgement, but you have made payments/acknowledgement after that 6 years has elapsed.
    Note: Once a debt becomes statute barred it stays that way permanently.
    Once barred, any payment or acknowledgement does NOT 'unbar' it.
  • A debt collector FALSELY claims that a phone call counts as acknowledgement.
    A debt collector FALSELY claims that the creditor writing to you counts as acknowledgement.

    There is nothing at all in the Limitation Act 1980 that allows the period to be restarted by the creditor contacting the debtor, or by a phone call.
    Limitation Act 1980
    The debtor must either acknowledge the debt in writing or make a payment.
    As specified in Section 29 here:
    Extension or Exclusion of Ordinary Time Limits
  • Possible letter if they claim a payment or acknowledgement was made..

  • Can I suggest that somewhere prominent we put that the SoL does not apply if you have a CCJ against you for the debt, although if the creditor has not enforced it in the last 6 years, they cannot just start now?
  • If you have paid the original creditor or any 3rd party/debt collection agency acting on their behalf or a DCA who they have sold the debt to within 6years from when you ceased payment then that counts as acknowledgement by you for the debt. And you would then need to have another 6years from the date of last payment to anyone including the DCA.
  • Hi there,
    I'm a newbie here so apologies if I'm posting in the wrong place.
    I'll try to keep what is a very complicated situation brief.
    My OH is being taken to court by the CSA for a liabilty order for a claim going back to 1996.
    For personal reasons, my OH never responded to the claim at any point as the PWC lodged the claim with the CSA, 7 years after registering the child as "father unknown" on his birth certificate and when OH asked for DNA testing, she disappeared for nearly 12 yrs!
    The CSA have produced as evidence, only 2 demands, one dated september 1996 and one dated april 2006.
    In 2006 they lodged their first attempt for a liability order, which they abandoned in court at the last minute.
    However thay are now going ahead again...given that they are trying to claim a debt going back to 1996, are we in a position to use the statute of limitations at all?
  • jules head over to the Child Support forum and ask kelloggs for help.
  • Oh Ta Ras, much appreciated.
  • whats an SOL?
  • Statute Of Limitation
  • hi thanx,just wandering if i should wait before i get a letter threatening court action before i send the letter about statute barred to the debt company?
    At the moment im just getting letters asking me to discuss a repayment plan with them.
  • Up to your.
    Are you sure the debt is statute barred?
    If you are, then just send the letter.
    If you are not, then wait. If they go to court then it is up to them to prove it's not SB.
  • ok thanx again il send the letter tomorrow and yes my debt was defaulted 8 years ago and i havent contacted the company since.
  • Hi, I know this is an oldish thread, but it came up when I googled my question. I have a very old debt 10 or 11 years old, but I made 2 payments a few years ago, CAB said at the time that it didn't count as acknowledgment of the debt for some reason, and I should send the letter that they gave me. I lost that letter but the harrassment stopped anyway so I just forgot about it, but I'm getting letters again now, please can someone shed some light on this, why was my payment not acknowledgement? they also said I would be refunded those payments, what letter should I send? Thanks in advance.