Have you received threats of legal action in respect of debts older than 6 years?

Although if you are in debt, you will continue to owe the money until it is paid off, after 6 years the debt is probably statute barred which means that the creditor will have lost his right to sue for the money.

Despite this, debt collectors frequently rely on people's ignorance of the law or their fear by making threats of legal action to recover debts even though these threats are unenforceable.

The making of a threat is dishonest.

The Financial Conduct Authority (FCA) took over the regulation of such issues on April 1st, 2014.

The Financial Conduct Authority (FCA) has published the consumer credit sourcebook (CONC) which looks at whether a debt is being collected fairly. Although the FCA cannot investigate individual complaints, you can still use their rules and guidance when disputing a debt on the grounds of limitation. All of the rules and guidance applies, no matter how old the debt is. In the Consumer Credit sourcebook (CONC), the FCA includes the following rules and guidance:

Quote

"...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." 7.15.4 Rule

 

"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." 7.15.7 Guidance

"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." 7.15.8 Rule

If you have received such threats, you should not respond to the debt collector but you should write a letter of complaint to the FCA who are obliged to investigate your complaint and to take enforcement action of some kind if they agree with you.

NOTE: Quite a few people posted on this "information" thread when they should have started their own. These have all now been removed to a separate thread which can be found HERE

Have you received threatening demands for debts older than 6 years.pdf

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Hi Bankfodder, There is a serious contradiction in this guide:

In the fifth paragraph you say, "Although the FCA cannot investigate individual complaints...", then in the paragraph following the 'rules' box, you say, "you should write a letter of complaint to the FCA who are obliged to investigate your complaint".

Please will you clarify this - which is correct?

Thanks, Doug