Make a SUBJECT ACCESS REQUEST to MAKE SURE a 'debt' is STATUTE BARRED - BEFORE sending the Statute Barred Letter

⚖️ Statute-barred debt – common questions

If you have an old debt, you may wonder: do you still have to pay it? 

Can creditors still take you to court after all this time?

Under English law, creditors only have a limited time – usually 6 years – to start court action. A debt that’s too old to be enforced in court is called statute-barred.

⛔ But if you keep making payments, the debt will never become statute-barred, no matter how old it gets.

📅 New rules for some debts – January 2019
In January 2019, the Court of Appeal case Doyle v PRA changed when the 6-year period starts for some debts (such as credit cards and loans).

📘 What does “statute-barred” mean?
The Limitation Act 1980 sets time limits for creditors to begin legal action.

⏳ For most debts in England and Wales, the limit is 6 years.

❌ If creditors don’t start court action within that time, the debt still exists but it can’t be enforced – you don’t have to pay.

🔄 The 6-year timer starts when the creditor first has a “cause of action” (a legal reason to sue).

If you are making your usual monthly payments, there is no cause of action. The timer only begins once you’ve missed payments and the creditor could take you to court.

⏳ Think of it like a 6-year timer
Imagine an hourglass running for 6 years. When it runs out, the debt becomes statute-barred.

🔁 But if you make a payment or acknowledge the debt in writing, the hourglass flips back and starts again from 6 years.
➡️ This means if you keep paying, even small amounts, the debt will never expire.

📌 What is a “cause of action”?
A creditor can only sue if they have a valid reason – that’s the cause of action.

• For most loans or credit cards, this starts when you miss a payment.

• For overdrafts, it’s trickier, since there are no set payments. You may have stopped using it years ago, but the bank might not act until much later.
  
  

✉️ In January 2019, the court ruled that for some debts (credit cards, loans), the cause of action may not start until the creditor sends a Default Notice.
⚠️ That means:

• You may not remember if you ever got one.

• Creditors could delay sending it, so the debt may never become statute-barred.
  
  

🔍 How to check if a debt is statute-barred
Most unsecured debts (loans, credit cards, catalogues, overdrafts) in England and Wales will normally be statute-barred if ALL these are true:

✅ It’s been more than 6 years since your last payment; and
✅ The creditor’s cause of action happened more than 6 years ago; and
✅ You haven’t acknowledged the debt in writing in that time; and
✅ The creditor hasn’t already taken you to court for a CCJ.

👥 With joint debts, if your ex-partner makes a payment, the 6-year clock resets for both of you.

🖊️ Acknowledgment must be in writing.

• Talking on the phone or receiving letters doesn’t count.

• Claiming PPI usually counts as acknowledging the debt.
  
  

⚠️ Why the exact date matters

• If you wrongly tell a creditor that your debt is statute-barred, that letter itself may restart the 6-year clock.

• If you get court papers, you need to know whether you can defend the case by arguing the debt is statute-barred.

❓ Questions about different sorts of debt

🏠 Secured debt – mortgage shortfalls

• If your debt is still secured (for example, you’re still living in the property with a mortgage or secured loan), statute barring doesn’t apply.
  ➡️ Instead, if arrears build up, the lender can go to court to repossess your home.
  
  

💰 When the property has been sold
If the house has already been sold and you still owe money (a mortgage shortfall):

⏳ The Limitation Act 1980 allows lenders 12 years to take action to recover this debt.

📜 However, many lenders follow the old Council for Mortgage Lenders code (now included in the FCA’s MCOB Rules – Mortgage Conduct of Business).
That guidance says:
👉 If your property was repossessed and sold more than 6 years ago, and your lender has not contacted you in that time, they will not later try to recover the shortfall.

💰 Do tax debts or benefit overpayments become statute barred?

• Tax debts (like Income Tax or VAT) ❌ do not become statute barred.

• HMRC does have a list of “not tax debts” – these can become statute barred.
  (See HMRC’s website for details: https://www.gov.uk/).
  
  

📑 Benefit overpayments:

• These can sometimes become statute barred.

• But ⚠️ even if statute barred, the Department for Work and Pensions (DWP) has other ways to recover the debt (such as deductions from benefits).
  
  

🏛️ What about council tax arrears?

• Councils should not apply to court for a Liability Order if the arrears are more than ⏳ 6 years old.

• But once a Liability Order is granted, it ❌ never becomes statute barred.
  
  

📩 If you suddenly get a letter about a Liability Order from 10 years ago, this may feel unfair – since you might no longer have records to prove you paid.
👉 In that case, consider:

• Asking the council to write off the debt.

• Contacting your local councillor for support.
  
  

💡 What about utilities (gas, electricity, water)?

• These bills become statute barred ⏳ 6 years after the bill date.

• There are also rules about “back billing” – suppliers cannot issue a new bill for charges more than 12 months old.
  
  

📬 Getting letters and court forms about a debt you think is statute barred

❓ Can I ignore a letter?

• Only if you are 100% sure it’s statute barred - Send and SAR - https://sites.google.com/view/subjectaccessrequest/home for ALL the data they hold. 

• If you don’t recognise the debt → send a Prove It letter (this doesn’t acknowledge the debt).

• If you do recognise it and it’s definitely statute barred you should  dispute it and  send the Statute Barred Letter.
  
  

⚠️ Can I ignore a Letter Before Action/Claim?

• No. It’s easier to challenge the debt as statute barred at this stage using the Reply Form than to fight it once court action has begun.
  
  

📄 What if I get a Claim Form?

• Never ignore it.

• If you don’t reply, the creditor can get judgment against you by default, even if the debt is statute barred.

• You must defend the claim, stating the debt is statute barred (and raise other defences like missing agreements if relevant).
  
  

🌍 Other FAQs about statute-barred debt

🏴 I live in Scotland

• Different laws apply. -  Under the Prescription and  Limitation Act 1973 - most 'debt' is Statute Barred after 5 years.
  
  

📌 My debt is statute barred – do I still owe it?

• Yes, it still exists and may be sold on.

• The FCA rules say if you state you won’t pay, the creditor must stop asking: https://www.handbook.fca.org.uk/handbook/CONC/7/15.html

• You could offer a very low Full & Final Settlement (often under 10%), pointing out the debt is statute barred.
  
  

🕒 A debt dropped off my credit file – is it statute barred?

• Not necessarily.

• Credit files drop defaults after 6 years, but statute barring depends on payments/acknowledgements.

• If you’ve paid even £1 in the last 6 years, the clock resets.
  
  

🔄 My debt has been sold – does that affect it?

• No. The 6-year clock still runs from your last payment/acknowledgement.

• Selling doesn’t reset it.
  
  

⚖️ When does a CCJ become statute barred?

• Never.

• But if no enforcement has happened in 6 years, the creditor must ask court permission to restart enforcement.
  
  

💸 My debt is statute barred – if I reclaim PPI will it reopen the debt?

• No, once statute barred it’s permanent.

• But if you win a reclaim, the lender may offset it against the old debt (since it still exists in theory).

• Avoid claims companies – they may bill you even if your reclaim money is swallowed up by the old debt.

STATUTE BARRED TEMPLATE LETTER

Send this when a debt has not bee paid or acknowledged in the last 6 years.

[Name-Name] [Surname]

[INSERT YOUR ADDRESS]

[Date In Full]

CEO Name

Debt Collection Agency Name 

Address line 1

Address2

County

P05T C0D3

NOTICE OF STATUTE BARRED CLAIM

Dear Sir/Madam,

Re: Your Reference: [INSERT REFERENCE NUMBER]

I am writing to you in connection with the claim received from you dated [Date In Full] (received [Date In Full]), 

I hereby give you formal Notice that the alleged debt regarding the above mentioned account is now Statute Barred in accordance with Section 5 of the Limitation Act 1980.

I remind you the Financial Conduct Authority (FCA) rule 7.15.8 states that:

“A firm must not continue to demand payment from a customer after the customer has stated that he will not be paying the debt because it is statute barred.”

I require you to formally acknowledge that this matter is now settled and that no further action will be taken, or alternatively you must provide immediately evidence that the Limitation Act 1980 does not apply. 

Furthermore, should your correspondence not sufficiently clarify that the alleged debt will no longer be pursued by you or any agency on your behalf then I will report you to the Financial Ombudsman.

I wish to make it perfectly clear that I all communications should be in writing and I hereby give Notice as of [Date In Full], under the Protection from Harassment Act 1977 to Cease and Desist any intended door-step visits. Any further unauthorised communication (text, calls or door-step visits) from your company or anyone on your behalf will be deemed to be harassment. 

The Financial Conduct Authority (FCA) has produced a set of Debt Collection and Debt Management Guidelines which state that:

"...continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statute barred could amount to harassment contrary to section 40 (1) of the Administration of Justice Act 1970".

Failure to comply with this Notice will result in you being reported to both Trading Standards and The Financial Conduct Authority. 

Take further notice that continued telephone calls after the receipt of a request not to call may constitute a criminal offence under Section 127 of the Communications Act 2003.

I require you to respond within 10 working days to reply in full and with a definitive response. All the information you require is already in your possession. All other communication will be deemed as harassment and a complaint will be made to the Financial Ombudsman Service without further warning.

I await to hear from you.

Kind Regards,

[YOUR NAME] 

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