How many years a debt can be collected for, after it has first been incurred, changes depending on the nature of the debt and where in the UK the debt is located. The rules of time limits of debt collecting are set out in the Limitation Act 1980.
If the debt is unsecured, a creditor has up to six years to chase payments.
Once the six years has elapsed, the debt becomes known as statute barred debt, which means it is not enforceable after this period. However, this does NOT mean the debt has been written off.
The creditor can still chase payment for a statute barred debt as long as they have been in regular contact within the time frame set out by the Limitation Act 1980. If the debtor changes addresses without telling the creditor or does not open the letters, this will still be counted as regular contact. If there has been no attempt to contact the debtor within the time limit then the creditor cannot legally chase the debt.
To extend the limitation you will need to do the following:
Most importantly keep a track of limitation as part of your credit control process and ensure that the date is diarised. Don't miss out on recoveries simply by leaving debts unpaid for too long. Send it across to Forbes Collect, the sooner you send it across the better chances of recovery.
01 Nov 2018
Back in August the shocking news that Mike Ashley's Sports Direct agreed to buy the House of Fraser department…
We have found Forbes to be efficient, informative and effective in all our debt collection cases
KM Accountants have worked with Forbes for just over 12 Months. During this time we have gained a great working relationship and I feel Forbes understand our business needs
On behalf of everyone here at EvolveU we just wanted to say a massive thanks for all of your help and assistance with the Traffic Engineering and Management Services Limited
We are delighted with the Professional manner in which Forbes Solicitors deal with all our legal requirements and would not hesitate to recommend this Company.
Trident Fire & Security Group Ltd
We asked Forbes Solicitors to help when a client would not pay his bill. I sent an email to Katy, received a reply straight away, we were advised of the action that would be taken
Abby Welding Ltd
I contacted Alison at Forbes Solicitors regarding an outstanding debt which we were having problems getting paid for I would just like to say what a very quick and professional service she provided
Thermal Hire Ltd
The Woodscape Group have been relying on Forbes Solicitors for over thirty years and the work carried out by Alison Nelson and the team over the last few years has only strengthened
DPFOC relies on Forbes for all legal advice. We find the service to be professional, well-informed and affordable.
Eddie O' Driscoll
I was owed money for plumbing services provided and despite several conversations with the debtor to request payment, he was dishonestly claiming that he had paid despite their being no evidence
Back on Tap Plumbing
Alison and her team have worked with us on a number of occasions now - so much so that we see them as an extension of our business!
Higher Access Limited
Forbes have helped me immensely with bad debt recovery over the past few years.
Able 2 Ltd
I have used Alison Nelson for a number of years for debt collection. I would strongly recommend her for similar work.
Consultant Plastic Surgeon
The professional and speedy way that Forbes dealt with this resulted in a very quick settlement of the matter. I can assure you that I will recommend Forbes for matters such as this in the future.
D&M Creative Limited
We have used Alison's services on a number of occasions and have always received the desired results!