Letter Responding to a Creditor S Claim That You Feel Your Debt Is Statute Barred

Letter responding to a creditor’s claim that you feel your debt is statute barred.

Updated April 2014

Replace and delete any unwanted text (mainly in blue) with your details and words, then make sure all the text is in black font, keep a copy and post recorded delivery.

Amend the I/We & me/us to suit you.

(Your name & address)

(Date)

(Insert name & address of the company

that has written or called you )

Dear Sir /Madam

Reference: (insert account number and name of lender pursuing)

This letter does not admit liability nor does it acknowledge the alleged debt.

I / We write following your recent contact with myself /us regarding a debt that you claim I / we owe.

I / We would point out that under the Section 5 of The Limitation Act 1980 whereby ‘an action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.

I /We would also refer you to the Office of Fair Trading, (OFT) Debt Collection Guidelines (updated October 2011) and now adopted by the Financial Conduct Authority (FCA) whereby it states under ‘statute barred debt’ that ‘it is unfair to pursue the debt if the debtor has heard nothing from the creditor during the relevant limitation period’.

The Debt collection Guidance also states that it is unfair or improper business practice for the debt collection business to misrepresent its legal position when seeking to recover statute barred debt.

It continues to state that it is false representation of authority and/or legal position for business to contact debtors misrepresent their authority and/or the correct legal position with regards to debts or the debt recovery process.

The guidance also gives an example of unfair or improper practice as ‘falsely implying or stating that action can, or will, be taken, when legally it cannot be taken’.

Under Annex B6 it states;

‘A relevant claim will normally take the form of the creditor raising an action for payment in court. Simply sending a default notice or a letter demanding payment will not constitute a relevant claim’.

The OFT ‘Debt Collection Guidance’ further states that by continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statue barred may be an unfair or improper practice.

I note from my records that the last payment / correspondence / or acknowledgement of this debt was made over six years ago and no further acknowledgement or payment has been made since that time.

As you have failed to provide evidence under Section 5 of the Limitation Act or the OFT updated Debt Collection Guidance then I / we suggest that you are no longer able to take any court action against me / us to recover the alleged amount claimed.

If you subsequently cannot prove I /we owe this debt and if you continue to act in this irresponsible and unprofessional way then I / we will have no other alternative than to report you to Trading Standards and I / we will also lodge a complaint with the Financial Conduct Authority (FCA), the Financial Ombudsman Service (FOS) and your trade association, if appropriate, the Credit Services Association.

If I / we receive any communication from another debt collection agency then it will be evident that you have sold this debt on with the knowledge that it is statute barred. Should this occur then I / we will report you to the government bodies and trade association detailed above.

I / We now await written confirmation that this matter is now closed, you are not to contact me / us by telephone, instead by letter only.

I / We look forward to your reply by return.

Yours faithfully

(Insert your signature)

(Insert your name)

Notes

You now need to post this letter if you send it recorded delivery to guarantee postage then you can trace the letter at the following website:

http://www.royalmail.com/portal/rm/track;jsessionid=1PMIVXRQJAWD2FB2IGLENZQUHRAYUQ2K?catId=22700601&gear=authentication

Remember to change all the colours in this letter to black and delete anything that is not needed before printing and sending.