Statute-Barred Debt Letter Template for England and Wales

Use a statute-barred letter only after checking the debt, dates and relevant law. This example is for an ordinary simple-contract debt in England and Wales; it is not a court defence or a template for every type of debt.

If you are unsure, ask a debt adviser to check the position before making a payment or acknowledging liability.

In this article, we’ll help you understand:

• When a limitation letter may be appropriate.
• What evidence to check before sending it.
• Example wording you can adapt.
• What to do if the collector disagrees or court papers arrive.

Dealing with old debt can make you feel unsure and worried. After all, a study by Citizens Advice found evidence of poor practices by debt collectors in the UK, including the collection of very old debt.¹

Don’t worry, you’re not alone. We’re here to help you understand your choices and make the best decisions.

When can you ask a collector to stop demanding payment?

For collection covered by FCA CONC 7.15, a firm must not keep demanding payment once you state that you will not pay because the debt is statute-barred. A separate rule bars recovery attempts where the lender or owner had not contacted you during the limitation period. This is not a blanket ban on every communication about any old debt.

Explain that you will not be paying because you consider the debt statute-barred, and ask for a written response.

Before you contact your creditor and tell them to stop contacting you regarding the debt, you have to be completely sure that the debt has indeed become statutorily-barred.

For many simple-contract debts in England and Wales, the limitation period is six years from the relevant cause of action: when the creditor became entitled to sue. The date depends on the agreement and legal requirements, including any required default notice. It is not automatically the date on the credit report.

A payment or qualifying acknowledgment before expiry can restart the period; timely proceedings or an existing judgment also change the analysis.

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These conditions are: 

• Check the cause of action and the full payment and acknowledgment history.
• Check whether a claim was started within time and whether a judgment exists.
• For joint debts, ask an adviser how the other borrower’s actions affect your position.

Do not describe the debt as definitely statute-barred solely because it is old or missing from your credit report.

State the legal basis you rely on and identify the account using the collector’s reference.

If the collector disagrees, ask for the agreement, relevant dates and evidence of any payment, acknowledgment or court proceedings relied upon.

In litigation you must raise the limitation defence and follow the court’s evidence requirements. Do not assume you have no role in proving the relevant facts.

Ask the collector to confirm its position in writing. A lack of an immediate reply does not itself decide the legal status.

Example letter wording

Adapt the following only if it accurately reflects your circumstances. Add your name, contact address, date and the collector’s account reference; keep a copy.

Dear [creditor or collector],

Re: [reference number]

I do not admit liability for the debt referred to in your correspondence. I understand that the claim is statute-barred under section 5 of the Limitation Act 1980.

I will not be making payment because the debt is statute-barred. Please stop demands for payment in accordance with FCA CONC 7.15 where those rules apply.

If you disagree, please explain your position and provide the relevant evidence, including the cause-of-action date and any payment, written acknowledgment or court proceedings on which you rely.

Please confirm the outcome of your review in writing.

Yours faithfully,
[name]

Do not use this letter as a substitute for responding to an issued court claim. Court deadlines continue while a collector considers correspondence.

What are Some Things to be Aware of Before Sending My Letter? 

This guidance focuses on England and Wales. Scotland has different prescription rules: many ordinary debts can be extinguished after five years if the conditions are met. Northern Ireland has its own limitation legislation. Obtain advice for the correct jurisdiction and debt type.

Confirm whether the collection is covered by FCA consumer-credit rules before relying on that part of the letter.

A debt outside those rules needs advice about its own legal position and complaint route.

Even when an ordinary debt is statute-barred in England and Wales, the underlying debt generally still exists. This differs from an express release or insolvency discharge.

Council tax, tax-credit overpayments, other benefit debts, mortgage shortfalls and existing judgments need separate checks.

For example, a benefit overpayment can sometimes still be recovered through benefits or wages without an ordinary civil claim. This simple-contract letter does not establish that such deductions must stop.

When should the collector reply?

You can request a response within a reasonable period, such as 21 days, but that is a requested deadline, not a statutory rule that automatically makes the debt unenforceable.

If evidence arrives, check it carefully with an adviser. A document or recent date does not automatically prove the whole demand is correct or affordable.

Complain to the lender or collector first. If the complaint is eligible and remains unresolved, you can refer it to the Financial Ombudsman Service within the applicable time limit. The FCA can receive reports about misconduct but does not decide individual compensation disputes.

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Make Sure to Keep a Copy of the Letter 

This goes without saying but I’ll still say it: Definitely keep a copy of the letter that you’re going to send to your creditors in case you need it for proof in the future. 

If the collector issues a claim, check the response deadline and obtain advice immediately, even if it has not answered your letter.

Keep the letter, reply, agreement and payment records so you can explain the chronology to an adviser or court.

It’s also a good idea to use a postal service that notifies you when the recipient receives the letter so that you have proof that your creditor did indeed receive your letter about the statute-barred debt. 

References

1. Citizens Advice – The state of debt collection