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What is the statute-barred rule for loans?

A simple unsecured debt in England, Wales or Northern Ireland becomes statute-barred after six years of no contact, no payment and no court action. Scotland has a five-year prescription period. Statute-barred debts still exist but cannot be enforced through court.

The six-year rule (England, Wales, NI)

Under the Limitation Act 1980, an unsecured contract debt becomes statute-barred after six years from the date the cause of action arose — usually the date of the first missed payment or the date of default.

Statute-barred means the creditor cannot use the courts to enforce the debt. They can still ask you to pay, but they cannot get a CCJ or use enforcement.

The debt itself still exists — it is legally owed. Only the enforcement route is closed.

The five-year rule (Scotland)

Scotland has a Prescription and Limitation (Scotland) Act 1973 which prescribes debts after five years of no acknowledgement, no payment and no court action.

Prescription in Scotland is stronger than statute-barring in England — a prescribed debt is legally extinguished, not just unenforceable.

What resets the clock

Any acknowledgement of the debt in writing.

Any payment made against the debt (even a small one).

Any court action starting.

Once any of these happens, the six-year (or five-year in Scotland) clock restarts.

Zombie debts and old creditor claims

Debt purchasers sometimes chase old statute-barred debts, hoping for a payment or acknowledgement that would reset the clock.

If you receive a demand for an old debt, check the date it originated. If it looks statute-barred, do not acknowledge or pay. Send a written response stating you believe the debt is statute-barred and asking the creditor to confirm.

The FCA and CSA (Credit Services Association) codes of conduct restrict how statute-barred debts can be chased. Complaints about aggressive pursuit of statute-barred debts can succeed.

Key takeaways

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