- Fri Oct 17, 2014 10:35 am
If you (or anyone acting on your behalf) have NOT PAID anything towards this debt AND if you (or anyone acting on your behalf) have not acknowledged this debt IN WRITING in the past six years (5 years if you live in Scotland) then it will normally be barred.
I have placed an example of the letter to send them a the bottom of this post.
HOWEVER, though they may not be able to enforce this debt through a court, it does not mean that the debt has gone, they are still legally allowed to ask you to pay it. Some companies will automatically send out a letter every three months, and that IS permitted in law.
The other HOWEVER, you need to make sure that there isn't a CCJ in place for it, if there is then the debt is not barred.
Example Statute Barred Debt Letter
Your full address
The Address of the Creditor/DCA
By Recorded Delivery
I/we* do not acknowledge any debt to you or any other company or organisation that you claim to be representing
Acc/Ref No 4563210025897412
You have contacted us regarding the account with the above reference number, which you claim is owed by me/ourselves*. I/we* do not acknowledge any debt to you or any other company or organisation that you claim to be representing
I/We* would point out that under the Limitation Act 1980 Section 5 “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.”
The last payment of this debt was made over six years ago and no further written acknowledgement or payment has been made since that time.
Unless you can provide evidence of payment by myself/us* or written acknowledgement of the debt from me/us* in the relevant period under Section 5 of the Limitation Act, I/we suggest that you are no longer able to take any court action against us to recover the alleged amount claimed, and should you try to proceed with court action I/we* must inform you that I/we* shall vigorously defend this action in court citing Section 5 as part of our defence.
You are also reminded of the FCA Consumer Credit Source book (CONC) rules which you are legally obliged to adhere to, (and further I am fully aware that compliance with the rules is a condition of your FCA Licence):
Rule 7.15.4 "...a firm must not attempt to recover a statute barred debt in England, Wales or Northern Ireland if the lender or owner has not been in contact with the customer during the limitation period."
Rule 7.15.7 "It is misleading for a firm to suggest or state that a customer may be the subject of court action for the sum of the statute barred debt when the firm knows, or reasonably ought to know, that the relevant limitation period has expired."
Rule 7.15.8 "A firm must not continue to demand payment from a customer after the customer has stated that he will not be paying the debt because it is statute barred."
Should you choose to ignore the above, or attempt to circumvent the rules I will uses this as a defence, and further I will draw this breach to the attention of the FCA Compliance Team
We await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.
We look forward to your reply.
Mr A N Other