Statute-Barred Debt Letter: England and Wales Template

Before sending a statute-barred debt letter, ask a debt adviser to check whether the relevant time limit has actually expired. This template focuses on simple-contract debts in England and Wales.

In this article, we’ll explain:

•  What a ‘statute barred debt’ is.
•  How to know if your debt is statute-barred.
• How limitation differs from a debt being written off.
•  The meaning of a ‘non-enforceable’ debt.
•  How to write a letter to your creditor about your statute-barred debt.

Do not use this letter instead of responding to court papers, or for an existing judgment. Scotland and Northern Ireland have different legal frameworks and need an appropriate letter.

Template: use only after checking an England and Wales limitation defence

Dear complaints team,

Account reference: [reference]

I do not admit liability for the amount claimed. Based on the information available to me, I believe that a court claim on this account is barred under section 5 of the Limitation Act 1980. My understanding is [set out the relevant dates and facts after obtaining advice].

If you disagree, please explain the cause-of-action date you rely on and provide evidence of any payment, qualifying written acknowledgement, court claim or judgment that you say changes the position.

Where FCA consumer-credit rules apply, please note that I will not pay the debt because I believe it is statute-barred. Please comply with the applicable rules on demands and misleading court threats.

Please confirm your position in writing and correct any inaccurate records.

Yours faithfully, [name]

Downloadable Resource

The download links below take you to a Google document template where you can make a copy or save in any document format you like. Note, you may have to login to your Google account.

Download – Single (for one person)
Download – Joint (for couples)

When can a debt become statute-barred or prescribed?

For many unsecured debts in England and Wales, the usual limitation period is six years from the relevant cause of action, not simply the last phone call. A payment, qualifying written acknowledgement or court proceedings can affect the position. Scotland usually has a five-year prescription period for many ordinary debts, with different rules and exceptions. Court judgments, secured debts and some tax debts require separate advice. Get free debt advice before paying or acknowledging an old debt; do not ignore court papers.

What does it mean?

Section 5 of the Limitation Act 1980 concerns the time for bringing a simple-contract claim in England and Wales. It does not mean every debt becomes unenforceable six years after the account opened.

FCA rules restrict recovery of statute-barred consumer-credit debts. A firm must not continue demanding payment after you say you will not pay because the debt is statute-barred. These rules do not apply identically to every kind of creditor or statutory debt.

In England and Wales, limitation normally provides a defence without extinguishing the underlying debt. Scottish prescription can extinguish qualifying obligations; do not use an England and Wales template as though it applied throughout the UK.

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What if there is a CCJ?

An unpaid CCJ does not disappear when its six-year credit-file entry ends. Existing judgments have separate enforcement rules, and some methods require permission after six years. Get advice rather than sending this simple-contract limitation letter.

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Some debt solutions have fees and may negatively affect your credit rating. MoneyNerd may receive a fee if you go ahead with a debt solution through The Debt Advice Service. For free, impartial guidance and help finding free debt advice, visit MoneyHelper.

What does “not enforceable” actually mean?

Statute barred debts are not enforceable, but what does that actually mean? 

A creditor may still issue a claim, so you must respond in time and raise the appropriate defence. The court will decide a disputed limitation issue; never assume court papers can be ignored.

How can I know my debt’s status?

If you think your debt is statute barred, you might want to get clarification from a debt charity. Step Change and other fantastic UK debt charities can assist you in working out if your debt has become statute barred. 

If advice confirms the relevant defence, adapt the letter accurately and keep a copy. Continue checking for genuine legal notices and use the appropriate court process if a claim arrives.