Debt Over 10 Years Old: Can It Still Be Collected?

A debt more than ten years old may still need attention. Whether it can be recovered depends on the debt type, jurisdiction, relevant dates and any court action.

This article will help you understand:

• What it means when a debt is over 10 years old.
• If you can still be chased for this debt.
• What to do if you are unsure about an old debt.
• How to deal with debts you’re not responsible for.
• How to get free and impartial debt advice.

Before paying or admitting liability, ask a free debt adviser to check the account and notices.

Don’t worry; you’re not alone! We’re here to help you find ways to deal with it.

Paying your debts over ten years old

While we all should pay the debts we make, there are some specific pieces of legislation in place that might mean we don’t have to pay.

As you can imagine, there are different rules and regulations surrounding debts and debt collectors, and it can be tricky to keep tabs on. 

Do not assume an old demand is valid or invalid solely from its age. A payment or qualifying acknowledgement can affect a time limit that has not already expired.

There are, however, a few different circumstances that might mean you don’t have to pay the debt at all.

A default normally remains on a credit file for six years from its original date. Credit reporting is separate from whether the underlying debt is recoverable.

Debts over ten years old also come into play, so read on to find out what to do.

Debts you’re not responsible for

Certain rules surrounding debts might mean you do not have to pay up.

A problem with the agreement or conduct may provide grounds for a complaint or defence, but it does not automatically cancel the debt. Ask an adviser to check the evidence and applicable law.

Inadequate affordability checks do not automatically erase the principal borrowed. A successful complaint may lead to a refund or removal of interest and charges, credit-file corrections or another remedy depending on the facts.

Limitation and prescription: more than the age of the debt

For many unsecured debts in England and Wales, the usual limitation period is six years from the relevant cause of action, not simply the last phone call. A payment, qualifying written acknowledgement or court proceedings can affect the position. Scotland usually has a five-year prescription period for many ordinary debts, with different rules and exceptions. Court judgments, secured debts and some tax debts require separate advice. Get free debt advice before paying or acknowledging an old debt; do not ignore court papers.

For a simple-contract claim in England and Wales, the usual six years runs from the relevant cause of action. That can differ from the opening date or last payment. A claim started in time may continue after the period would otherwise have ended.

In England and Wales, a limitation defence generally bars the court remedy rather than extinguishing the debt. In Scotland, prescription can extinguish a qualifying obligation.

A ten-year-old balance is not automatically time-barred. Court judgments, mortgage debts, tax and some statutory debts have different rules.

There are, however, certain rules surrounding this too.

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Can I be chased for debt after ten years?

If a claim is issued, respond by the court deadline and raise the appropriate defence. Do not assume the court will identify limitation without your response.

For regulated consumer-credit collection, FCA rules restrict attempts to recover statute-barred debts. In particular, a firm must stop demanding payment after you say you will not pay because the debt is statute-barred.

Those rules also prohibit misleading threats about rights and court action. They do not turn every old debt into a legal write-off or make every type of notice unlawful.

There are caveats to this.

DWP may use statutory benefit deductions or a direct earnings attachment where the legal conditions apply, even where court recovery is time-barred. HMRC has different powers for the debts it administers; not every HMRC debt has an unlimited limitation period. Ask which debt and recovery power are being used.

A County Court Judgement (CCJ) can also be chased.

An unpaid CCJ does not expire after six years. Permission is normally required to issue certain writs or warrants after six years, but not every enforcement method has the same permission rule. Get advice about the method actually proposed.

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Use the enquiry form to request a call about your circumstances and available options. You decide whether to proceed.

Continue to the enquiry form

Advertisement. MoneyNerd introduces enquiries; we do not give debt advice or recommend solutions. The Debt Advice Service, a trading style of Pacific Financial Solutions Limited, offers free debt advice with no obligation. Complete the enquiry form to share your details and request a call.

Some debt solutions have fees and may negatively affect your credit rating. MoneyNerd may receive a fee if you go ahead with a debt solution through The Debt Advice Service. For free, impartial guidance and help finding free debt advice, visit MoneyHelper.

Where can you get free and impartial debt advice?

The following debt advice services can give you more information on debt solutions, such as a debt management plan (DMP), Individual Voluntary Arrangement (IVA), debt relief order and more.

Here, we’ll go into detailed responses to some of the more commonly asked questions about debts over ten years old.

References

1. Citizens Advice – The state of debt collection