CONC 7.15 Statute barred debts
A debt is statute barred where the prescribed period within which a claim in relation to the debt may be brought expires. In England, Wales and Northern Ireland, the limitation period is generally six years in relation to debt. In Scotland, the prescriptive period is five years in relation to debt.
[Note: annex B1 of DCG]
In Scotland, a statute barred debt ceases to exist and is no longer recoverable if:
A firm must endeavour to ensure that it does not mislead a customer as to the customer's rights and obligations.
[Note: paragraph 3.15b of DCG]
A firm must identify for prospective purchasers of debts arising under credit agreements or consumer hire agreements or P2P agreements those debts which it knows or ought reasonably to know are statute barred, so as to avoid a firm taking inappropriate action against customers in relation to such debts.
[Note: paragraph 3.23c of DCG]
Complaints to the Financial Ombudsman Service and initiating legal proceedings
A lender must not initiate legal proceedings in relation to a regulated credit agreement where the lender is aware that the customer has submitted a valid complaint or what appears to the firm may be a valid complaint relating to the agreement in question that is being considered by the Financial Ombudsman Service.
[Note: paragraph 7.9 (box) of ILG]