You may be contacted by a creditor about a debt you believe is statute barred. If this happens you will need to tell them without admitting responsibility for the debt.
- How to inform a Creditor that a debt is Statute Barred
- What if the Creditor continues collection action
How to Inform a Creditor a Debt is Statute Barred
If you are contacted by a creditor trying to collect a debt which you have not paid or acknowledged for the past 6 years it may be statute barred. Where this is the case you cannot be forced to pay it.
However you must not ignor the creditor. If the debt has been sold to a purchaser they may not be aware that the debt is statute barred. The easiest way to tell them is by writing a letter.
Your letter should state the debt is Statute Barred and as such no longer enforceable quoting the Limitations Act 1980. The creditor should write back to you confirming their agreement and that they will stop all further collection actions against you.
If you would like to use our Statute Barred Debt template letter please contact us and we will e-mail it to you.
Where the debt is being persude by a debt collector you should write to the original creditor. If it has been bought by a debt purchaser write to them. Sent your letter recorded delivery so that you have proof of receipt.
What if a Creditor continues to try to collect a Statute Barred Debt?
A creditor may refuse to acknowledge that the debt is statute barred. If this happens and they continues to try and collect the balance you can then raise a complaint against them.
You must do this by writing a second letter informing them that the debt is disputed and their continued activity is being treated as harassment.
The complaint is based on the fact that the debt is disputed. There are rules laid down by the Financial Conduct Authority (FCA) in relation to this situation as follows:
CONC 7.14.1 (1)
A firm must suspend any steps it takes or its agent takes in the recovery of a debt from a customer where the customer disputes the debt on valid grounds or what may be valid grounds.
Valid grounds for disputing a debt include that:
(1) the individual being pursued for the debt is not the true borrower or hirer under the agreement in question; or
(2) the debt does not exist; or
(3) the amount of the debt being pursued is incorrect.
If you would like to use our Harassment regarding Disputed Debt template letter please contact us and we will e-mail it to you.
In addition to these rules if the creditor continues to press for payment after you have stated that you will not be paying a debt because it is statue barred this could amount to harassment contrary to section 40 (1) of the Administration of Justice Act 1970.