Statute Barred Debt in Glasgow

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Statute Barred Debt In Glasgow

Table of Contents

• How Long Can A Debt Be Chased UK – Glasgow Debts
  • International Statute Barred Debts – Does This Change Anything?
    • Using A Debt Collection Agency For Statute Barred Debts
      • Debt Collection Glasgow – Frequently Asked Questions

Millions of pounds worth of debts are owed in Glasgow and Scotland every single year to businesses and individuals.

It has been reported that this has seen an increase of 23% for businesses alone within the last few years.

Debts are relentless and there are many different scenarios in which debtors feel they don’t have to pay.

These may be due to issues related to mortgage shortfalls, benefit overpayments, council tax arrears, bad credit files etc.

Even the most stringent credit control measures could be hit by a delinquent debtor falling through the cracks.

Should you have an unsecured debt that has not been paid, you need to recover the debt as soon as possible.

Many people delay the recovery of money owed as a lot of time is spent wondering how to resolve the situation.

It is logical to do this as the situation of being owed money can be extremely stressful.

A debtor paying the debt can take a lot longer than usual if they are refusing to pay what is owed.

It is important to know that there are time limits related to the recovery of debts. If these time limits are ignored, this can have serious consequences for a business’s cash flow.

You may have taken too long to recover the debt and may ask “how long can a debt be chased UK”?

This guide outlines how long creditors have to recover debt and what happens after this time runs out.

How Long Can A Debt Be Chased UK – Glasgow Debts

When time limits may affect the debt recovery process, this relates to “Statute Barred” debts.

Many creditors may be confused by this phrase, especially if they have never heard of this before.

The Statute Barred rule is part of a list of laws and regulations companies must abide by when recovering debt.

So, how does a statute barred debt affect the collection of money that is owed?

This is outlined under the Limitation Act 1980, which means a creditor only has six years to chase/collect a debt.

The start of the six-year period can be dictated by different parameters, depending on the circumstances.

This period starts from the last known acknowledgement or payment of the debt. If during the six years there are mentions of this, the time is reset.

Examples of this include credit card payments, phone calls, letters, emails etc.

If a debtor responds and writes to the creditor regarding the debt, this will also reset the time.

In some scenarios and depending on the type of debt, the court can extend the time period.

To many, it may seem an unfair rule that money owed to them can be written off.

There are positives to this, however, as it gives the debtor more time to make a payment towards the debt.

Also, before a debt is statute barred status, it could create a longer window for it to be collected.

International Statute Barred Debts – Does This Change Anything?

If you have someone that owes the debt overseas, you may be wondering how this rule affects the debt.

From country to country, the rules and regulations regarding statute barred debts change.

This is the same for overseas debt collection rules, as they change across the globe.

In California, for example, the time in which a debt can be collected is different to in Glasgow.

Whereas the UK is six, in California it is four years if written and two years if verbal.

The laws revolving around the recovery of international debts can be challenging, which is where the experts come in.

If you have a debt that is approaching the six-year limit, speak to a professional debt collection agency.

Using A Debt Collection Agency For Statute Barred Debts

It is common for businesses or individuals that are owed money to recover this in the wrong ways.

There are many different methods to choose from and choosing the wrong one could present further financial issues.

A professional debt collection agency is by far the most affordable and effective way to recover any debts.

Whilst County Court Judgments or court action is effective, the results that a collection agency provides are the best.

Although most agencies can provide a nationwide service, it is beneficial to use a local agency to resolve issues.

At Debt Collection Glasgow, we provide a referral service for the best agencies in the city and surrounding areas.

Across our long history, we have collated a list of the most effective agencies that provide the best results.

Our partners ensure not to jeopardise relationships as to not result in needing the Financial Ombudsman Service.

Debt Collection Glasgow’s Recommended Agencies

For commercial debt collection agency requirements, we recommend using Federal Management.

Since 2004, we have collected millions of pounds yearly for our clients with business debts.

We have expertise working within all business sectors, providing quality results with a quality service.

Also, we are authorised and regulated by the Financial Conduct Authority (FCA).

They aim to recover money as quickly as possible, at a fraction of the price of using other methods.

If you are owed money by an individual, we refer our clients to Frontline Collections.

They are the UK’s leading private debt collection agency and have operated since 2005.

Across this long time period, they have collected debts for a large number of clients in all industry sectors.

Some of the most common include Independent Schools, Dental Practices and Vets.

They have also been awarded “Gold Preferred Supplier” status by the Independent Schools Association.

Additionally, if a debt is owed overseas they have experts that can carry out international debt collection.

This is an impressive service to have in any agency’s arsenal considering how common these types of debts are.

Both of the agencies we recommend are experts in undertaking all types of debt recovery.

If you have a debt that is close to the six-year period, speak to a debt collection agency.

Debt Collection Glasgow – Frequently Asked Questions