This section holds useful information regarding debt questions and bankruptcy questions.

Moderators: TalbotWoods, JaneClack

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By TalbotWoods
#159636 Updated to to include the FCA Consumer Credit Source book (CONC) rules

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

Dear Sir/Madam

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.

Yours faithfully

Mr A N Other

* Delete as appropriate

Who do I send it to?

You send this to the creditor that OWNS the debt, and a copy to any DCA that is chasing on their behalf, informing the DCA that the debt is in dispute.

Using "Without Prejudice" on the letter

You will see that it does not state "Without Prejudice", this is because a DCA/Creditor/Solicitor can request that a court rule that evidence submitted "Without Prejudice" should be rejected. Unless YOU have informed the court in advance about a court case involving HMRC, where the courts ruled that "Without Prejudice" letters could be used in court, the court is obliged to exclude these letters. Please do not loose your evidence in advance!

Updated by Tim - 24/06/2014
User avatar
By TalbotWoods
#471901 Is the debt related to a Hire Purchase Agreement, if so please be aware of a court of appeal case called BMW Financial Services (GB) Limited v Hart (2012)

In that case it was decided that the LAST cause of action shall be the latest of the following:

:arrow: The last time you made a payment (or a person authorised to act on your behalf) did so.

:arrow: The last time you acknowledged the debt in writing (or a person authorised to act on your behalf) did so.

:arrow: The date that the default is issued against the account/debt

This means for most people that if you have a debt related to a HIRE PURCHASE account, then the clock towards it becoming barred will not start until the default is issued, which may be some time later!

The Court decided that the cause of action to recover the unpaid balance did not start until the lender had served a termination letter or accepted the debtor’s repudiation of the agreement.

In means until the default is issued or you have notified them creditor in writing that you do not wish to be bound by the terms and agreements in place.

If this is the case please can you contact one of the organisations below or seek advice on the main forum, as the debt may not yet be statute barred!!

HOWEVER if you are claiming a debt is barred that is NOT a Hire Purchase agreement, and the claimant states the above legal case to say it is not barred, then you have a defence in any court action, as long as you point out to the court this case ONLY applies to Hire Purchase agreements


The Money Advice Service: Free & impartial money advice, set up by government that aims to signpost you to appropriate organisations that may be able to help you. You can contact them on 0300 500 5000

PayPlan: Is a national organisation with approaching 20 years of experience in dealing with all kinds of financial situations, no matter how bad they are.
Their advice and help starts with a simple phone call to 0800 280 2816

NDL: Is an organisation that advises you on solutions that are available to you, you can contact them on 0808 808 4000

StepChange (formerly CCCS) Is an organisation that advises you on available solutions with your financial problems. You can contact them on 0800 138 1111