The statute of limitations is an institution that protects the debtor from indefinite pursuit for debts. However, the statute of limitations clock can be "reset" very easily as a result of an unthinking acknowledgement of debt. When does an acknowledgement of claim occur, what are its consequences, and why do debt collection companies rely on it so heavily?

Debt collectors often call debtors just before the statute of limitations expires, offering settlement payment plans. If the debtor starts considering this offer, they automatically acknowledge the debt. The statute of limitations is interrupted.

Interruption of the statute of limitations and acknowledgement of debt

What are the risks of recognizing a claim (recognition of debt)?

Polish civil law stipulates that a creditor (e.g., a bank, seller, landlord) generally has a limited time to pursue their claims in court. If they do not file a lawsuit within this period, it leads to the so-called statute of limitations. The statute of limitations is associated with a very high probability of the creditor losing the case. The court (and later the bailiff) will have their hands tied, and recovering money or property will depend solely on the debtor's goodwill.

Limitation periods the agreement must not be changed. The parties may only agree on the date of payment from which the limitation period begins to run. Importantly, however, this period is not set in stone. In certain cases specified in the Civil Code, it is possible to press ‘reset’. The law refers to such a reset as an interruption of the limitation period. From that moment, the time required for the limitation period to expire starts running anew. One of the main reasons for such an interruption is precisely acknowledgement of a claim by the debtor.

When a claim is acknowledged and time is "written off"?

The Civil Code does not precisely define what constitutes an acknowledgment of a claim. However, the case law of the Supreme Court (including the judgment of 16 September 2022, II CSKP 551/22) has adopted a dangerously broad interpretation. An acknowledgment of debt occurs through any behaviour by the debtor which demonstrates their awareness of the existence of the obligation incumbent upon them.

It is not necessary for the debtor (e.g. borrower or tenant) to want to pay this debt. Nor do they need to be aware at all that they are interrupting the statute of limitations with their words. It is enough for them to admit: Yes, I know I'm behind..

Therefore, debtors should be very careful in their dealings with creditors. This mechanism is widely used by debt collection companies, which buy up debts nearing their statute of limitations for a fraction of their value. The debt collector calls the victim and offers, for example, "interest write-off if we spread the debt over three convenient instalments". If the debtor takes the bait and asks for the instalment schedule to be sent by email – in the eyes of the law, they have just acknowledged the claim, and the debt collection company gains another few years to pursue them through a bailiff.

When there is no need to fear the recognition of a claim.

When the statute of limitations has already passed, stopping its course becomes legally and physically impossible. The debtor's error can then cost them dearly, but only within another legal institution: the so-called waiver of the statute of limitations. However, this requires much more specific declarations of intent (e.g. signing a settlement agreement), and not just accidental confirmation of the existence of arrears.

Legal assistance in combating the statute of limitations

The fact that an acknowledgement of debt does not have to be explicitly set out in writing makes it difficult to assess one’s own situation. A solicitor specialising in civil law can analyse the history of correspondence and conversations with the debt collector to assess whether the clock has in fact started ticking again. This enables you to make a rational decision as to whether to enter into a legal dispute with the creditor.