United Kingdom, with material jurisdiction differences

Statute-barred debt and limitation periods

Understand statute-barred debt, the general limitation periods and why the legal effect differs between England, Wales, Northern Ireland and Scotland.

Whether a debt is statute barred depends on the debt, jurisdiction, when the cause of action arose, later payments or acknowledgements and whether court proceedings have already been started. FCA guidance says the period is generally six years for debt in England, Wales and Northern Ireland and five years in Scotland, but the legal effect is not identical across those jurisdictions.

England and Wales

Section 5 of the Limitation Act 1980 provides a six-year limitation period for actions founded on simple contract from the date the cause of action accrued, subject to important exceptions and rules. A debt should not be labelled statute barred solely because six calendar years have passed since an account was opened or last used.

FCA rules on collection activity

FCA CONC 7.15 requires firms not to mislead customers about limitation. It also restricts demands for payment after a customer states they will not pay because a debt is statute barred in the circumstances covered by the rules.

Scotland is legally different

FCA guidance notes a general five-year prescriptive period for debt in Scotland and explains that, where the relevant conditions are met, the debt may cease to exist rather than merely becoming court-barred. Do not apply an England and Wales template to a Scottish debt.

Related guidance

Important: This page provides general information, not regulated financial or legal advice. Rules and enforcement processes can depend on the debt, court, creditor and jurisdiction.