Once A Debt Is Statute Barred....

frostfair

Once a debt is statute barred (ie more than 6 years have passed on an unsecured debt and you have neither paid nor acknowledged the debt)...what can be done to reclaim the money if a creditor or DCA track you down?

McKneff

Absolutely nothing, if they keep chasing you, you can tell them you will report them for harassment.
But you have to understand, even when it is statute barred, it doesn't mean the debt is still not owed. The debt is
still definitely owed, its just that it cannot be chased through the courts. But the issue of a summons can be made right up to the last day of the 6 years...

MisterBaxter

Although technically the debt is still owed and always will be, in reality it will essentially have gone away. With no legal redress what chance has the creditor got of recovering the money unless the debtor chooses to pay.

For the debt to be statute barred six years without payment or acknowledgement will have passed which also means it is likely to have been more than six years since the debt defaulted which means that it will also be off your credit report so won't impact in your ability to gain credit (unless a lender specifically asks the questions about having ever defaulted in the past).

Obviously the creditor can keep a record of your non payment so they may not lend to you again but it does seem that some lenders will lend to previous defaulters.

National_Debtline

One thing to bear in mind with the Limitation Act is that it bars the (legal) remedy, but not the right to the money. Although court action may become barred, a creditor may have the ability to recover the money via another way. For example, overpayments of state benefits may be recoverable from an ongoing benefit award.

David.