How to Reply to a Debt Collector About a Statute-Barred Debt

When a debt collector contacts you about an old debt, the debt may have passed its limitation period — making it what is known in England, Wales, and Northern Ireland as "statute-barred." In Scotland, the equivalent concept is "prescription," where the debt is not merely unenforceable but is extinguished entirely. This article explains how the statute-barred system works, what the relevant rules and timelines are, and what happens when a debtor communicates with a creditor about such a debt. It does not cover what you should or should not do — only how the system operates.

This article is based on the Limitation Act 1980 (England and Wales), the Limitation (Northern Ireland) Order 1989, the Prescription and Limitation (Scotland) Act 1973, and FCA Consumer Credit sourcebook (CONC) rules. It does not constitute legal or financial advice.

A debt becomes statute-barred in England, Wales, and Northern Ireland when six years have passed since the "cause of action accrued" — typically the point at which the creditor first became entitled to take court action — without a payment being made or a written acknowledgment being signed by the debtor. In Scotland, most unsecured debts are extinguished after five years under the prescriptive period.

Once a debt is statute-barred, the creditor can no longer use the courts to force repayment. The debt still legally exists in England, Wales, and Northern Ireland, but it cannot be enforced through court proceedings. In Scotland, the debt ceases to exist altogether.

FCA-regulated firms are bound by specific rules about pursuing statute-barred debts. Under CONC 7.15.4, they must not attempt to recover a statute-barred debt once they know or ought reasonably to know the limitation period has expired, if they have not been in contact with the customer during that period. Under CONC 7.15.8, they must not continue to demand payment after a customer states they will not pay because the debt is statute-barred — even if the firm was in regular contact during the limitation period.

The limitation system operates as a defence, not an automatic cancellation. In England, Wales, and Northern Ireland, the Limitation Act 1980 does not erase debts — it removes the creditor's ability to enforce them through the courts. The distinction matters: a creditor may still ask for payment, but they cannot obtain a court order compelling it, provided the limitation period has expired and has not been restarted.

The limitation period for most unsecured debts — credit cards, personal loans, overdrafts, and catalogue debts — is six years from the date the cause of action accrued, as set out in Section 5 of the Limitation Act 1980. The cause of action typically accrues when the creditor becomes entitled to take court action. This is usually when a contractual payment is missed, though a default notice is required before enforcement for Consumer Credit Act-regulated debts.

Scotland's Difference

Scotland operates under a different legal framework. The Prescription and Limitation (Scotland) Act 1973, Section 6, provides that most unsecured debts are extinguished after a five-year prescriptive period without payment, acknowledgment, or a court claim being raised. Unlike in England and Wales, this means the obligation itself ceases to exist.

Northern Ireland

Northern Ireland follows a substantially similar framework to England and Wales, with a six-year limitation period for simple contract debts under the Limitation (Northern Ireland) Order 1989, Article 4.

What restarts the limitation period

Two actions can restart the limitation clock under the Limitation Act 1980:

• Payment. Any payment made by the debtor or their agent restarts the limitation period, as stated in Section 29(5). Where a debt is held jointly, a payment by one joint debtor restarts the clock for all joint debtors.
• Written acknowledgment. Under Section 30(1), an acknowledgment must be "in writing and signed by the person making it" to restart the limitation period. For joint debts, a written acknowledgment by one debtor only restarts the clock for that person — it does not bind the other joint debtor (Section 31(6)).

Electronic communications can constitute a written and signed acknowledgment depending on the circumstances, though the position may vary with the specific facts of each case.

The following verified figures apply to the limitation and prescription framework across the UK.

1. Six years is the limitation period for simple contract debts (unsecured credit debts) in England, Wales, and Northern Ireland. This runs from the date the cause of action accrued (Limitation Act 1980, Section 5; Limitation (Northern Ireland) Order 1989, Article 4).
2. Five years is the prescriptive period for most unsecured debts in Scotland. After five years without payment, acknowledgment, or a court claim, the obligation is extinguished (Prescription and Limitation (Scotland) Act 1973, Section 6).
3. Twelve years is the limitation period for mortgage capital (principal) shortfalls in England, Wales, and Northern Ireland (Limitation Act 1980, Section 20(1)). Interest on mortgage shortfalls carries a separate six-year limitation period.
4. Twenty years is the long-stop prescriptive period for certain debts in Scotland (Prescription and Limitation (Scotland) Act 1973, Section 7). Following amendments introduced by the 2018 Act, this period cannot be interrupted by acknowledgment or claim.

FCA rules on pursuing statute-barred debts

FCA-regulated consumer credit firms are subject to binding rules — not merely guidance — under CONC 7.15. Two provisions are particularly relevant.

• CONC 7.15.4 states that firms must not attempt to recover statute-barred debts once they know or ought reasonably to know the limitation period has expired, if they have not been in contact with the customer during that period.
• CONC 7.15.8 states that firms must not continue to demand payment after a customer states they will not pay because the debt is statute-barred. This second rule applies regardless of whether the firm maintained regular contact during the limitation period.

If court papers are issued

If a creditor sends court papers for a debt believed to be statute-barred, the debtor must respond by the deadline stated on those papers — typically 14 to 28 days. The response should explain the limitation defence. If no defence is filed, the court may enter a judgment regardless of the limitation period having expired.

Complaints to the Financial Ombudsman Service

If an FCA-regulated firm continues to contact a debtor about a statute-barred debt after being notified, the debtor can complain to the Financial Ombudsman Service (FOS). The creditor's own complaints procedure must be followed first. The FOS can consider events from April 2007 onwards. It is important to understand that the FOS cannot decide whether a debt is statute-barred — only the courts can make that determination. However, the FOS can assess whether a firm acted unfairly in pursuing the debt.

The debt still exists

In England, Wales, and Northern Ireland, a statute-barred debt has not been cancelled or written off. The creditor simply loses the right to enforce it through the courts. In Scotland, the position is different — the debt itself is extinguished once the prescriptive period has passed.

Limitation is a defence, not automatic protection

The court does not check the age of a debt before issuing proceedings. A creditor can still file a claim. It is for the debtor to raise the limitation defence within the deadline on the court papers. If no defence is filed, a judgment may be entered.

Acknowledging the debt can restart the clock

A written, signed acknowledgment of the debt restarts the six-year limitation period in England, Wales, and Northern Ireland. A payment — even a small one — also restarts it. Verbal acknowledgment alone does not restart the period under the Limitation Act 1980, which requires acknowledgment to be in writing and signed.

Joint debts are treated asymmetrically

A payment by one joint debtor restarts the limitation period for all joint debtors. However, a written acknowledgment by one joint debtor only restarts it for the person who made the acknowledgment, not the other party.

Scotland uses a fundamentally different system

Scottish "prescription" extinguishes the debt entirely after five years, rather than merely barring court action. This is a legal distinction with practical consequences: in Scotland, the obligation itself no longer exists once prescribed.

Several categories of debt operate outside the standard limitation framework or carry modified rules.

• Tax debts. Income tax and VAT have no limitation period. Section 37(2) of the Limitation Act 1980 explicitly excludes "proceedings for recovery of tax or duty and interest on tax or duty" from limitation periods. These debts cannot become statute-barred.
• National Insurance Contributions. Unlike tax, a six-year limitation period applies to court recovery of NICs under Section 9(1) of the Limitation Act 1980, though administrative recovery routes may differ. NICs are not classified as tax and are therefore not excluded by Section 37(2).
• DWP benefit overpayments and tax credit overpayments. These can become statute-barred after six years for the purposes of court action. However, the DWP retains the power to recover overpayments by making direct deductions from ongoing benefits as an administrative measure, without needing court action.
• Council tax arrears. Council tax is enforced via magistrates' court liability orders and is not governed by standard Limitation Act rules. Once a liability order has been obtained, there is, in most cases, no time limit for enforcement. If a CCJ arising from council tax is more than six years old, the creditor needs court permission to use bailiffs (enforcement agents).
• Child maintenance arrears. Under the Child Support Act 1991, for arrears arising from 12 July 2006 onwards, there is, according to published guidance, no limitation period for applying for a liability order. Once a liability order is obtained, a six-year limitation period may apply for certain enforcement methods such as bailiffs.
• County Court Judgments (CCJs). If a creditor has already obtained a CCJ, the Limitation Act does not impose a time limit on enforcing that judgment, although court permission is required to enforce a CCJ after six years (CPR 83.2).
• Breathing Space scheme. The Breathing Space scheme, which applies in England and Wales, pauses the running of the limitation period, which resumes after breathing space ends. The limitation period resumes eight weeks after the breathing space period itself ends. During breathing space, creditors cannot contact the debtor or take enforcement action.
• Mortgage shortfalls. Capital (principal) shortfalls carry a twelve-year limitation period. Interest on mortgage shortfalls has a six-year limitation period. The cause of action usually accrues when the lender becomes contractually entitled to demand full repayment.
• Scotland's twenty-year long-stop. Under Section 7 of the Prescription and Limitation (Scotland) Act 1973, a twenty-year long-stop prescriptive period applies to certain debts. Following 2018 Act amendments, this period cannot be interrupted by acknowledgment or claim.

The process of responding to a creditor about a potentially statute-barred debt operates within a specific framework.

Citizens Advice and National Debtline describe a process in which a debtor sends a letter to the creditor stating that the debt is statute-barred and that they do not admit liability. According to these organisations, the letter should include the statement "I don't admit any liability for your claim." Sources consistently note that the letter should avoid language suggesting uncertainty about what is owed or disputing the amount, as this could be interpreted as acknowledging the debt.

There is no officially prescribed template or mandatory wording for such a letter. Different advisory organisations suggest slightly different approaches, though all agree on the importance of including a statement that liability is not admitted.

If a debtor receives court papers relating to a debt they believe is statute-barred, they must respond within the deadline stated on the papers — typically 14 to 28 days — and raise the limitation defence. Failing to respond may result in a judgment being entered regardless of whether the limitation period has expired.

Where an FCA-regulated firm continues to pursue the debt after being notified that it is statute-barred, the debtor can follow the firm's complaints procedure and, if unresolved, complain to the Financial Ombudsman Service. The FOS can assess whether the firm's conduct was fair, but cannot itself determine whether the debt is statute-barred.

Statutory demands

A separate but related process involves statutory demands. A statutory demand cannot be used to found a bankruptcy petition unless the debt is at least £5,000. A debtor has 18 days to apply to set aside a statutory demand using form IAA at the court named on the demand. If a statutory demand is not dealt with, the creditor can petition for bankruptcy after 21 days.

• Limitation vs Extinction: In England/Wales/NI, limitation bars enforcement (6 years). In Scotland, prescription extinguishes debt (5 years).
• Restarting the Clock: Payment or written, signed acknowledgment restarts the limitation period (unless expired).
• FCA Rules: CONC rules prohibit regulated firms from pursuing statute-barred debts once notified or if they know limitation has expired.
• Court Action: Limitation is a defence you must raise. It is not automatic.
• Exceptions: Tax debts have no limitation. Mortgage capital is 12 years.
• Communication: Use "I do not admit liability" when writing to creditors.