What to Do When a Creditor Contacts You About an Old Debt

If a creditor or debt collector contacts you about a debt from several years ago, your first instinct might be panic. But before you do anything, it is important to understand your legal position. In many cases, old debts become "statute-barred" — meaning the creditor can no longer take court action to recover them.

What Is a Statute-Barred Debt?

Under the Limitation Act 1980, most unsecured debts in England and Wales become statute-barred after six years. This means the creditor loses the right to take you to court to recover the money. The six-year clock starts from the date of your last payment or the last time you acknowledged the debt in writing. For mortgage shortfalls, the limitation period is twelve years.

Is the Debt Actually Statute-Barred?

A debt is statute-barred if all three of the following are true: more than six years have passed since your last payment, more than six years have passed since you last acknowledged the debt in writing, and the creditor has not already obtained a County Court Judgment (CCJ) against you. If a CCJ was granted, it remains enforceable for six years from the date of the judgment regardless of the original debt's age.

What You Should (and Should Not) Do

If you believe a debt is statute-barred, do not make a payment — even a token amount. Making a payment restarts the six-year clock. Similarly, do not acknowledge the debt in writing as owing. You can respond to the creditor to say that you believe the debt is statute-barred and request that they stop contacting you. It is also important to check your credit report: debts should be removed from your file six years after the default date.

Your Rights Under FCA Rules

Debt collectors in the UK are regulated by the Financial Conduct Authority (FCA). Under FCA guidelines, a firm must not pursue a debt that it knows or ought to know is statute-barred without telling you that you do not have to pay. They must not apply pressure to get you to make a payment on a statute-barred debt. If a debt collector is harassing you, you can complain to the Financial Ombudsman Service.

When the Debt Is Still Enforceable

If the debt is not statute-barred — for example, you made a payment within the last six years — the creditor does have the right to pursue it. In this situation, you should check that the amount claimed is correct, request a copy of the original credit agreement, and consider seeking debt advice from StepChange, National Debtline, or Citizens Advice. You may be able to negotiate a reduced settlement or an affordable repayment plan.

Receiving contact about an old debt is stressful, but knowledge is your best defence. Understanding whether a debt is statute-barred puts you in control of the situation.