Statute of Limitations & Debt
Debts don't last forever. Under the Statute of Limitations Act 1957, most debts become legally unenforceable after 6 years. Here's what you need to know.
The 6-Year Rule
Under the Statute of Limitations Act 1957 (as amended), a creditor has 6 years from the date the cause of action accrued (usually the date of default or last payment) to take legal proceedings to recover a debt.
Key point:After 6 years with no acknowledgement or payment, the debt is “statute-barred” — the creditor cannot sue you for it.
When Does the Clock Start?
The 6-year limitation period starts from:
- Simple contract debts (credit cards, personal loans, overdrafts): the date of last payment or last written acknowledgement of the debt
- Debts under seal (mortgage deeds): 12 years from the same trigger date
- Revenue/tax debts: different rules apply — these are not covered here
What Resets the Clock?
The limitation period can be reset if you:
- Make any payment toward the debt (even a small one)
- Acknowledge the debt in writing (e.g., signing a new repayment plan, writing a letter confirming you owe the money)
Critical warning: This is why debt collectors pressure you to make even a token payment. A single EUR 5 payment can restart the entire 6-year clock. Do not make any payment without understanding the consequences.
Statute-Barred vs Written Off
These are different things:
Statute-Barred
The creditor cannot sue you for the debt. It still technically exists, but it's legally unenforceable. A legal concept from the Statute of Limitations Act 1957.
Written Off
An accounting decision by the creditor. The debt is removed from their active books. The creditor may still try to collect or sell it. Not a legal concept.
CCR Reporting and Statute-Barred Debt
Under the Credit Reporting Act 2013, credit information can remain on the Central Credit Register for up to 5 years from the date the information was last reported. This means:
- A statute-barred debt should not still be actively reported on your CCR
- If it is, you have grounds to file a CCR amendment and a complaint
- A GDPR SAR can help you prove when the debt was last active vs when it was written off
Debt Collectors and Statute-Barred Debt
Debt collectors can still contact you about a statute-barred debt — this is not illegal. But they cannot:
- Threaten legal action for a statute-barred debt
- Mislead you about whether the debt is enforceable
- Report a statute-barred debt to the CCR as “active”
- Pressure you into making a payment that would restart the clock
Your response:If a debt collector contacts you about a potentially statute-barred debt, send a letter demanding they prove: (1) the original credit agreement, (2) the date of last payment, (3) the legal basis for enforcement. Use our “Cease and Desist” template.
How to Check if a Debt is Statute-Barred
- Get your CCR report — check what date the debt was last reported
- Send a Subject Access Request — get internal records showing the last payment date
- Calculate: if 6 years have passed since the last payment or written acknowledgement, the debt is statute-barred
- If you're unsure, do NOT make any payment or written acknowledgement until you've confirmed the dates