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A debt is considered Statute Barred if a creditor has not contacted a debtor for a period of 6 years and no action has been taken on the account.
Although the debt is still legally acknowledged as being owed, the creditor is not able to take any legal action against the debtor in order to recover the debt. It is considered unfair if a creditor or Debt Collection Agency (DCA) misleads the debtor into believing the debt is still legally recoverable. It is also considered an unfair practice if the creditor or DCA press for payment after the debtor has stated they will not be paying the money owed. This could amount to harassment contrary to s.40(1) of the Administration of Justice Act 1970.
Some lenders and many DCA's will continue to request money for debts that have lapsed beyond six years. If you find that you are being pursued for a debt that you believe is statute barred, then use this letter.
Although the debt is still legally acknowledged as being owed, the creditor is not able to take any legal action against the debtor in order to recover the debt. It is considered unfair if a creditor or Debt Collection Agency (DCA) misleads the debtor into believing the debt is still legally recoverable. It is also considered an unfair practice if the creditor or DCA press for payment after the debtor has stated they will not be paying the money owed. This could amount to harassment contrary to s.40(1) of the Administration of Justice Act 1970.
Some lenders and many DCA's will continue to request money for debts that have lapsed beyond six years. If you find that you are being pursued for a debt that you believe is statute barred, then use this letter.
Creditor or DCA Name
Creditor or DCA Address
Town
County
Postcode
Dear Sir/Madam
Re: Account No/Your Ref:
No debt is acknowledged to your company yet you have contacted me regarding the above account.
As I am sure you are aware, under the Limitation Act 1980, s.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.”
No correspondence/payment/acknowledgement of this debt has been made within the last six years and accordingly unless you can provide evidence of payment or written contact from me in the relevant period under s.5 of the Limitation Act 1980, I suggest that you are no longer able to take any court action against me to recover any alleged amount claimed.
Furthermore, the OFT Debt Collection Guidance states that "continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statue barred could amount to harassment contrary to s.40 (1) of the Administration of Justice Act 1970".
I await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.
I look forward to your early reply.
Yours faithfully
(Your signature)
(Your Name)
Creditor or DCA Address
Town
County
Postcode
Dear Sir/Madam
Re: Account No/Your Ref:
No debt is acknowledged to your company yet you have contacted me regarding the above account.
As I am sure you are aware, under the Limitation Act 1980, s.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.”
No correspondence/payment/acknowledgement of this debt has been made within the last six years and accordingly unless you can provide evidence of payment or written contact from me in the relevant period under s.5 of the Limitation Act 1980, I suggest that you are no longer able to take any court action against me to recover any alleged amount claimed.
Furthermore, the OFT Debt Collection Guidance states that "continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statue barred could amount to harassment contrary to s.40 (1) of the Administration of Justice Act 1970".
I await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.
I look forward to your early reply.
Yours faithfully
(Your signature)
(Your Name)
