How long can people chase me for debt?
Unsecured debts, such as credit cards, store cards, overdrafts, bank loans and catalogues, typically have a statute limitation of six years, after which the debt becomes unenforceable.
Creditors are given a fixed timescale to chase you for a debt, as outlined in the Limitations Act 1980. The timescale mainly depends on the type of debt and can be extended at a court’s discretion.
The Limitations Act 1980 Explained
- Only applies when no contact has been made between the creditor/debtor within the given time limit
- Only applies to residents of England and Wales
- The time limit begins when you last admitted owing the money or when you last made a payment
- Should the creditor fail to maintain contact with you within the timescale set, it’s possible to claim that the outstanding debt is ‘statute barred’, under the conditions of this Act
Depending on the type of debt in question, there are a few things you’ll need to know:
If it’s an unsecured debt
- It’s important to remember that creditors can still pursue this type of debt if:
- They’ve previously obtained a judgment against you (for example, a CCJ)
- You’ve made a payment to the account within the last six years (or anyone else named on the credit agreement has)
- You’ve not written to the creditor acknowledging or admitting that you owe the debt during the previous six years
- If you haven’t heard from your creditor because you haven’t notified them of a change of address, the debt will still exist and creditors will still be entitled to chase it indefinitely (even after it’s ‘statue barred’), however they can only use the legal system to recover the money for up to six years after the last payment was made to the account
- If a creditor continues to contact you after accepting the debt is ‘statute barred’ and you’ve told them you no longer intend to pay it, you may be able to claim harassment contrary to the Administration of Justice Act 1970.
If it’s a CCJ (County Court Judgment)
- If the creditor’s previously taken you to court and you’ve received a CCJ (County Court Judgment), you’ll be unable to use the Limitations Act 1980 to dispute the debt
- If the judgment is over six years old, the creditor may need the court’s permission to enforce the debt
If it’s a council tax debt
- If the council tax was due over six years ago, the council aren’t able to ask the court for a Liability Order (which would allow them to deduct the debt from your income)
- It’s unlikely though that the council would allow this to happen, it’s more likely that they’ll obtain a Liability Order before the six years are up
If it’s a mortgage debt
- Your mortgage lender may begin chasing you for a mortgage shortfall as the result of repossession
- With this type of debt, the time limit is different – they have 12 years to chase this before it becomes ‘statute-barred’
If it’s a debt relating to income tax/VAT
- There’s no time limit on how long these debts can be chased – you’ll always be pursued for debts owing to HMRC
If it’s a benefits overpayment
- The DWP (Department of Work & Pensions) can chase debts after six years, without going to court
- They’ll reclaim the overpayments by deducting them from your benefits income
What should I do if a creditor contacts me after six years?
Don’t admit to owing the money.
If you agree to owing the outstanding amount within six years of it being due, you’ll be required to pay it back and the creditor can take steps to have the collection of the debt legally enforced by a court.
If you make a payment after six years, the debt will remain statute-barred, but it’s unlikely that you’ll be able to claim back the payments made after this time because you do still owe the creditor the money.
Write to the creditor reminding them the debt is statute-barred.
If a creditor you haven’t had any communication with for six years contacts you about the debt, write to them quoting the Limitations Act 1980.
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