When do debt collectors stop chasing? Limitation and your options

There is no fixed date on which every debt collector must give up. Whether a debt can be pursued depends on the debt, jurisdiction and any court proceedings, not just its age.

In this article, we’ll discuss:

•  What a debt collector is and why they might be trying to get money from you.
•  How long they can keep trying to get money from you.
•  What could happen if you don’t pay your debt.
•  How to talk to debt collectors and maybe even make your debt smaller.
•  How to get help if you’re finding it hard to pay back what you owe.

You might be feeling confused about where the debt has come from or worried because you can’t afford to pay. Maybe you’re even wondering if the debt is real.

It’s okay to feel this way. In fact, research shows that 64% of UK adults find interactions with current debt collectors stressful¹. We’re here to help you figure things out.

Why is a collector contacting you?

There are two reasons why you may find you are being chased by a firm of debt collectors. Firstly, one of your creditors may have asked a debt collection agency to collect the debt on their behalf. Secondly, your debt has been taken over by the agency itself, and they will pursue you and try and get you to pay it.

These are two subtly different scenarios. When a debt collector is acting as an intermediary between you and one of your creditors, it is still the creditor you owe money to. However, when a debt collector takes on your debt entirely, you then owe the collection agency.

A debt may be sold for less than its face value. The sale price does not establish what you owe, remove your defences or permit harassment.

Can Debt Be Ignored?

In general, no – debts cannot be ignored. If you are liable for a debt, you need to find some way to settle it. Alternatively, you need to set up a repayment plan that you can afford, based on your current financial situation, and we go over this a little later in this post.

Check the basis of liability. A signature on a credit agreement is not required for every debt: liabilities can also arise from bills, guarantees, joint agreements or legislation. See related guidance.

Explain a dispute and request an itemised balance and evidence of liability. A valid or potentially valid dispute within FCA consumer-credit rules must be investigated with recovery paused, but a generic evidence request does not cancel a debt, override a court order or extend a court deadline.

Do You Need To Pay Them?

If a valid enforceable debt is yours, discuss payment or get free debt advice if you cannot afford it. Hiding from a collector does not cause a debt to be written off and can mean missing important court papers.

Check old debts with an adviser before making a payment or written acknowledgement. Keep your correspondence address up to date so that you can respond to genuine proceedings.

» TAKE ACTION NOW: Fill out the short debt form

What Happens if You Don’t Settle Your Debt?

A creditor or collector may send reminders, discuss repayment or start a court claim. The available steps depend on the debt and procedure; escalation is not automatic.

• You will be sent letters, probably many letters, demanding that you pay your debt.
• Calls must comply with applicable contact, privacy and harassment rules. Explain reasonable contact preferences and any accessibility needs.
• An ordinary collection agent may ask to visit but has no power to force entry or seize goods.
• A reportable default can affect a credit file, but selling an account does not justify a new default date or inaccurate duplicate balance.
• A County Court Judgment (CCJ) might be sought against you, having an even worse impact on your credit score.
• A statutory demand can be a step towards insolvency proceedings, but it is not an attachment-of-earnings order and does not automatically make someone bankrupt. Seek urgent advice if one arrives. See related guidance.

^{Debt Collectors vs Bailiffs}

Although both debt collectors and bailiffs can visit your home, they have different rights when it comes to trying to collect a debt. It’s key that you know the main differences between debt collectors and bailiffs so that you don’t get taken advantage of.

Here’s a quick table summarizing what each one can and can’t do.

How long can a debt be pursued?

Many ordinary contract debts in England and Wales have a six-year limitation period. This usually bars a court claim when the conditions are met; it does not automatically write off the debt. Scotland has separate prescription rules, and judgments and specialist debts need different analysis.

The relevant starting date depends on the debt. A qualifying payment or signed written acknowledgement can affect the period before it expires. A telephone conversation, a collector’s letter or merely being traced does not by itself restart it.

Do not use avoidance as a strategy. A court claim issued in time, an existing judgment or an exception may change the position. For FCA-regulated collection, further pursuit of a statute-barred debt is restricted once the customer says they will not pay because it is statute barred.

Take the first step towards tackling your debt

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Natasha

Very helpful and informative thank you

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Negotiating With Them

Debt collectors would prefer that you paid your debt without taking you to court. The simpler the collection process is, the less it will cost them and the more profit they will make.

Therefore, it can be possible to negotiate an easier repayment schedule with a collection agency, based on what you can afford rather than what you owe. You could potentially use a standard letter template to begin the process of negotiation.

References

1. InDebted, Debt Collectors Survey
2. Jubilee Debt, A Fresh Start After Covid-19