What Does It Mean to Have My Debt Barred Under Statute?
Debt collectors are driven in collecting debts no matter how old they happen to be. They will continue to call relentlessly and bombard you with an endless stream of messages until you cave in. What if your debt has long expired?
Protect yourself by learning all about statute-barred debts and how you can deal with collection agencies who cross the line by continuing to badger you for an expired debt. You can deal with the collection agency on your own or enlist DoNotPay to do the difficult task for you.
Aside from helping you out in dealing with a statute-barred debt, DoNotPay can also assist you in handling harassment from collection agencies all across the UK. Learn how to deal with debt collectors such as
- Amigo Loans
- Moorcroft Debt Recovery
- Lowell Financial
- DWP Debt Management
- Provident Loans
- Advantis Debt Collection
- Marston Group Holdings
No need to feel intimidated. With DoNotPay’s guidance, you’ll be confident and knowledgeable enough to battle it out with any debt collector in no time.
What Is Statute-barred Debt?
A statute-barred debt is one that has passed the period when debt collectors are no longer allowed to pursue it legally. The statute of limitations for unsecured debts in the UK is 6 years and 12 years for mortgages.
The debt will still exist but collection agencies cannot take any legal action with regard to your non-payment. If they continue to contact you regarding the debt, you can write them a letter indicating that you will not be making a payment on the statute-barred debt and request for them to stop contacting you.
If your creditor disregards your request and they are regulated by the Financial Conduct Authority, you can reach out to the FCA and report them.
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0300 500 8082 (from the UK)
+44 207 066 1000 (from abroad)
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The Limitation Act 1980 states that the limitation period begins as soon as you’re sent a default notice of the debt. From the date indicated on the notice, you have to fulfil all of the following conditions within six years for your limitation period to be valid:
- No payment should be made towards your debt in six years.
- In case of a joint debt, you and your partner must not have acknowledged the debt in writing.
- No Country Court Judgement or CCJ has been taken out by your creditor.
What Is Considered Harassment by a Debt Collector?
Many debt collectors will go to extreme lengths to try to collect the debts that are owed to the businesses or companies they represent. According to the law in the UK, the following is considered unreasonable behaviour by debt collectors and could be taken as harassment:
- Home visitation or even coming into your property
- Contacting you through social media
- Threatening you with verbal or legal threats
- Stating that non-payment is a criminal offence - for most debts - it's not a criminal act if you do not pay them
- Contacting you multiple times during the day
- Calling you during unacceptable hours which are before 8 am or past 5 pm
If you ask the debt collector to stop calling you, they are also prohibited from contacting you again. Failure to adhere to these regulations on the part of creditors is considered harassment and you have a right to file a complaint about it. If you are unsure of what steps you should take, DoNotPay can help.
How Do I Pay Off My Debts?
If you have existing debts and have the capability to pay them, we highly recommend that you do so. This will save you from all the trouble and will definitely have a good impact as well on your credit score. To make payments towards your debts, you can reach out to the creditor or debt collector directly as each company will have a different process to follow.
Here are other ways of settling your debt:
- Apply for a Debt Relief Order. To get a DRO, you may draft a letter to the UK government and request. When a DRO is in place, your creditors cannot collect the debt without the court’s permission and you are freed from your debt after a year.
- Hire an insolvency practitioner to work out an Individual Voluntary Agreement. An IVA is the best option if you need to settle multiple debts among different creditors or debt collectors.
This way, your debt is paid in instalments over a longer period of time and you only need to make the payment to the insolvency practitioner. He will in turn divide the payment among all the creditors.
- Find charities that will help you pay your debts.
- File for bankruptcy. This usually lasts 12 months and can only be declared if the amount you owe is greater than the value of everything you own. Going bankrupt may have adverse effects and needs to be mulled over if it is indeed the best road for you to take.
DoNotPay Can Help You With Your Debt Repayments:
If all of that seems rather tedious and just overwhelming, there’s an easier way out. Rather than writing letters, filling out paperwork, and having to sign endless forms for any type of assistance, DoNotPay can simplify all of it for you.
All you have to do is complete the following 3 easy steps:
- Search “debt collection” on DoNotPay.
- Answer a series of questions about the debt collectors, including when you were contacted and how you were contacted, so we can determine if they have violated any debt collection laws.
- Decide which course of action you want to take based on our guidance, such as filing a debt verification request, demanding for the collectors to stop contacting you, or reporting them to a professional trade association.
Once done, all you have to do is allow DoNotPay to take action from there.
What Else Can DoNotPay Do?
We are glad that you asked! DoNotPay offers a variety of services to its users, and our goal is to help you save both time and money while getting the best possible results.
You might want to check out these other financial solutions available on our website:
- Improve your credit limit
- Pay your bills online
- Sign up for free trials risk-free
- Find missing money
- Get help with unpaid bills
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- Protect your work against copyright infringement
- Get in touch with your incarcerated loved ones
- Free yourself from spam mailings
- Stop text messaging spam
Sign up with DoNotPay and improve your way of life while getting things done in a more convenient way.