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Letter Informing Debt Collector that Debt is Statute-Barred

It can be a shock to receive a letter warning of action being taken on a debt which had been long since forgotten. Many people plan their finances based on a steady basis on income and outgoings, and an unexpected expenditure such as this could cause chaos in terms of their monetary stability.

Fortunately, however, there are laws which prevent a company or organisation deciding to collect on an ancient debt out of the blue. Under the Limitation Act 1980, a person who is owed a debt has 6 years from the date that the debt arises to take legal action to recover it from the debtor. If he fails to do this, and if in the meantime the debtor has not acknowledged the existence of the debt by confirming in writing that it is owed, the creditor can take no further legal action.

We offer a template letter which can be used to respond to demands for payment of a debt which has been time-barred under the Limitation Act. No legal knowledge is required – all you have to do is fill out your details and send it off to the creditor to make it clear that they are in breach of the Act and cannot collect on the debt. It’s a quick and simple way of exercising your consumer rights – download it today.