Statute Barred Debt UK: How to Check Yours

Before you reply to anything, work out what you are actually holding:

• If you think six years automatically clears a debt, read Does Debt Get Written Off After 6 Years UK?.
• If the letters have been piling up unopened, read Should You Ignore Debt Collection Letters in the UK?.
• If a company you have never heard of is chasing you, read How Debt Collectors Buy Debt in the UK.
• If you are not sure whether you have to pay at all, read Do You Have to Pay Debt Collectors? UK Legal Rights.
• If you are deciding whether to phone or write, read Should You Call or Write to a Debt Collector in the UK?.
• If there is a default on your credit file from years ago, read What Is a Default and Default Notice? A Simple UK Guide.

Pause before you pick up the phone. On an old debt, what you say and what you pay both matter.

In England, Wales and Northern Ireland, the time limits for debt come from limitation law. The Limitation Act 1980 sets out how long a creditor has to bring different types of claim.

For most ordinary unsecured debts, such as credit cards, store cards, catalogue accounts, overdrafts, personal loans and many utility accounts, the period is six years.

In Scotland the rules come from separate legislation, the Prescription and Limitation (Scotland) Act 1973, and the period is five years.

The clock does not start when the account was opened. It generally starts from the cause of action, which in practice is usually the last payment or the last written acknowledgement of the debt.

Different debts follow different periods. These are the ones people ask about most.

Most unsecured debts: six years in England, Wales and Northern Ireland. This covers credit cards, catalogues, overdrafts, personal loans, most store cards and many utility bills.

Mortgage shortfall, interest: six years. If a property was repossessed and sold for less than the outstanding mortgage, the interest element of the shortfall generally follows the six-year period.

Mortgage shortfall, capital: twelve years. The capital element of a mortgage shortfall carries a longer period, so a shortfall can be chased long after the six-year mark.

Debts in Scotland: five years, under the Prescription and Limitation (Scotland) Act 1973.

Some debts are treated differently again. Council tax arrears, court fines, benefit overpayments, tax debts and debts already covered by a county court judgment do not work the same way as ordinary consumer credit. If a judgment already exists, limitation is not the issue you are dealing with.

If your debt is a mortgage shortfall, check which element is being chased before you assume anything.

This is the part that catches people out, and it is the reason the page tells you to pause rather than pick up the phone.

Under the Limitation Act 1980, if you acknowledge the debt in writing or make a payment towards it before the limitation period has expired, the clock can start again from that acknowledgement or payment. That is set out in section 29(5).

So the following can all matter:

• making a token or one-off payment on an old account;
• signing something that accepts the debt is yours;
• writing to say you will pay when you can;
• agreeing a payment plan;
• confirming the balance in writing.

There is an important limit on this. Once a debt is already statute barred, section 29(7) means the position cannot normally be revived by a later acknowledgement or payment. In other words, a payment made after the period has expired does not usually bring the debt back into the reach of the courts.

The practical point is timing. Before the period expires, what you say and what you pay can extend it. After it expires, it generally cannot be restarted.

In England, Wales and Northern Ireland, a statute barred debt has not disappeared. The creditor has lost the ability to use the courts in the normal way, but the balance still technically exists and you may still receive letters.

That is why being statute barred is described as a defence. If a claim were issued, the point would need to be raised. It does not happen automatically.

In Scotland the outcome is stronger. Once the prescriptive period has passed, a debt can cease to exist and stop being recoverable at all.

FCA rules also expect firms to be straight with customers about this. A firm must endeavour to ensure that it does not mislead a customer as to the customer’s rights and obligations. Firms are also expected to identify debts they know or ought reasonably to know are statute barred when selling debts on, so that inappropriate action is not taken against customers.

Limitation and credit reporting are two separate systems, and mixing them up is the most common mistake on this topic.

A default is generally removed from your credit file six years after the date it was recorded. That is a reporting rule, not a legal one.

So a debt can be gone from your credit file while still being inside the limitation period, and a debt can be statute barred while an old record still shows for a while.

The UK credit reference agencies are Experian, Equifax and TransUnion. Check all three, because they do not always hold the same information.

Work through this on paper before you contact anyone:

1. Identify the type of debt. Unsecured credit, mortgage shortfall, council tax, court fine and judgment debt are not the same.
2. Find the date of your last payment. Bank statements are usually the best evidence.
3. Find the date of the last time you acknowledged the debt in writing.
4. Check whether either of those dates is more than six years ago, or five years if the debt is in Scotland.
5. If it is a mortgage shortfall, work out whether the interest or the capital is being chased.
6. Check whether a county court judgment already exists. If it does, limitation is not your issue.
7. Get your credit report from all three credit reference agencies.
8. Gather any old letters, statements and agreements you still have.
9. Do not confirm the balance or make a payment while you are still checking.
10. If the dates look close to the limit, or your records are incomplete, get help before you reply.

If you cannot find the dates, that is a common problem, not a dead end. It changes how a written enquiry should be worded.

Most old debts people ask about turn out to still be live. That is not the end of the world, but it does need dealing with properly.

If the debt is enforceable, the questions become what you can genuinely afford, what your priority bills are, and what happens if you offer more than you can maintain.

FCA rules expect firms collecting consumer credit debt to treat customers in default or arrears with forbearance and due consideration. That includes taking account of your circumstances rather than demanding an amount you cannot sustain.

Work from your own figures, not from what a collector suggests on the phone.

Letters can still arrive. That does not automatically mean a firm has broken the rules, but there are limits.

If you believe a debt is statute barred and you have said so, keep everything in writing and keep copies. Note the dates, who contacted you and how.

If contact becomes pressuring, misleading or persistent after you have set out your position, you may have grounds to complain. Firms are expected not to mislead customers about their rights and obligations, and there are separate FCA rules covering the conduct of debt collection.

Raise the complaint with the firm first, in writing, then escalate if the response does not deal with it.

What does statute barred actually mean?
It means the period in which a creditor can bring a court claim for the debt has expired. FCA rules confirm the limitation period is generally six years in England, Wales and Northern Ireland, and the prescriptive period is five years in Scotland.

When does the six years start?
Generally from your last payment or your last written acknowledgement of the debt, not from when the account was opened.

Is a statute barred debt written off?
Not in England, Wales or Northern Ireland. The debt still exists and you may still be asked to pay. It normally cannot be enforced through the courts. In Scotland a debt can cease to exist once the prescriptive period has passed.

Can a payment restart the clock?
Before the period has expired, yes. A payment or a written acknowledgement can restart it under section 29(5) of the Limitation Act 1980. Once the debt is already statute barred, section 29(7) means it cannot normally be revived.

Does a phone call restart the clock?
Acknowledgement generally needs to be in writing, but phone calls carry real risk because of what you may agree to, confirm or pay during the call. Pause and check first.

Do mortgage shortfalls follow the same rules?
Not entirely. The interest element generally follows six years, while the capital element carries a twelve-year period.

Can a debt collector still contact me?
They may still write to you. What they must not do is mislead you about your rights and obligations.

Does it apply to council tax or court fines?
Those work differently to ordinary consumer credit debts, and a debt already covered by a county court judgment is a separate situation again.

The Real Debt Guy has completed the DipFA Level 4 qualification and shares general debt and money education for UK consumers.

This article is for general information and education only. It is not personal financial advice, regulated debt advice, debt counselling or debt adjusting.

The Real Debt Guy is not FCA authorised. The Real Debt Guy is a letter-drafting and administrative support service.