What is the deadline for debt collection?
The Limitation Act 1980 establishes guidelines regarding how long a creditor, someone you owe money to, has to take specific actions to recover a debt from you.
It's important to note that these time limits don't apply universally to all forms of debt recovery, and they vary depending on the nature of your debt.
Unsecured credit debts things like credit cards, store cards, personal loans and catalogues.are subject to a six-year limitation period under the provisions of the Limitation Act. This means that, according to the law, creditors have up to six years to pursue legal action for simple contract debts, which often include unsecured credit obligations.
Once the limitation period is in progress, a simple contract debt is typically considered statute-barred under the following conditions:
- The creditor has not initiated a county court claim for the debt.
- Neither you nor any other individual responsible for the debt (in case the debt is jointly held) has made a payment towards the debt in the past six years.
- You have not sent a written acknowledgment to the creditor admitting that you owe the debt within the last six years.
There are also some debts which can’t be Statute Barred, or are subject to different limitations.
Please do not hesitate to contact us should you require any additional information