What is a letter before action?

A letter before action (LBA) is a formal notice sent before starting court proceedings. It sets out your claim, the legal basis (e.g. Consumer Rights Act 2015, Housing Act 1988), the remedy you seek, and a deadline to respond — typically 14 days. Civil Procedure Rules require this step before most court claims, and courts take a dim view of parties who skip it.

Can I write my own legal letter?

Yes. You do not need a solicitor to write a legal letter. What matters is citing the correct legislation, stating your claim with precise dates and amounts, and giving a clear deadline. A well-drafted letter citing the right Act and section often resolves disputes without court proceedings — and costs nothing extra to send.

Does a legal letter actually work?

In many cases, yes. Most businesses, landlords, and employers respond when they receive a formally worded letter that cites specific legislation and mentions court or tribunal proceedings as the next step. It signals you know your rights and are prepared to escalate — which is often enough to get a resolution.

What UK legislation covers consumer complaints and refunds?

The Consumer Rights Act 2015 is the primary law. Section 9 requires goods to be of satisfactory quality; section 20 gives you the right to a full refund within 30 days if goods are faulty. For services, section 49 requires reasonable care and skill. For distance/online purchases, the Consumer Contracts Regulations 2013 give you a 14-day cooling-off period.

18 July 2026

Chased for an Old Debt? When It Becomes 'Statute-Barred' — and the Letter That Stops Collectors (UK)

A letter or phone call chasing you for a debt you had almost forgotten about — sometimes from many years ago, sometimes sold on to a collection agency you have never heard of — is designed to make you panic and pay. But debts do not stay legally enforceable forever. Under the Limitation Act 1980, most consumer debts in England and Wales become "statute-barred" after a set period, which stops the creditor using the courts to make you pay. Knowing whether your debt has crossed that line — and, just as importantly, how to avoid accidentally handing the creditor their rights back — can change everything. Here is how the rules actually work, the traps that catch people out, and what to put in writing.

What "Statute-Barred" Really Means

For most ordinary consumer debts — credit cards, personal loans, overdrafts, catalogue and store accounts, utility arrears — section 5 of the Limitation Act 1980 gives a creditor six years to start court action to recover the money in England and Wales. If they do not begin a court claim within that window, the debt becomes statute-barred: they can no longer use the courts to force you to pay.

But be clear about what this does not mean. A statute-barred debt is not wiped out or erased. It still legally exists; the creditor or a collector can still write to you and ask you to pay, and it may still show on your credit file. What changes is that the court route is closed to them — and, as you will see below, a regulated firm should not keep pressing you for it at all.

When Does the Clock Start — and When Does It Reset?

The six years generally run from the "cause of action" — in plain terms, from when you first fell into default and the creditor became entitled to demand the full balance (often the date of a default notice), not the date you took the credit out. Two things reset that clock while it is still running:

You make a payment towards the debt; or
You acknowledge the debt in writing — a signed written admission that you owe it (section 29 of the Act).

Either of those before the six years is up starts a fresh six-year period from the date of that payment or acknowledgement. So the practical rule of thumb is: the debt is likely statute-barred if it has been at least six years since your last payment or written acknowledgement, and no court claim has been issued in the meantime.

The Big Trap: Do Not Accidentally Restart the Clock — But Once It's Barred, It Stays Barred

Before six years are up, a single payment or a written "yes, I owe this" can reset the whole clock — which is exactly why collectors sometimes push for a small "token" payment or an admission. Never confirm a debt is yours or agree to pay until you have checked the dates. But there is a powerful flip side that collectors rarely volunteer: under section 29(7) of the Limitation Act 1980, once a debt is already statute-barred, it cannot be revived by any later acknowledgement or payment. If the six years have genuinely passed, admitting the debt afterwards does not bring it back to life. Know which side of the line you are on before you say anything.

Scotland Works Differently — 5 Years

If you live in Scotland, the equivalent period is usually five years under the Prescription and Limitation (Scotland) Act 1973. There is an important difference from England and Wales: in Scotland, most debts are actually extinguished after five years without a claim, payment, or written acknowledgement — genuinely wiped, not just unenforceable. One caveat: the Act also contains a 20-year long-stop, and unlike the five-year period, that longer clock is not reset by payments or acknowledgements. For most everyday consumer debts, though, the five-year rule is the one that matters.

The Debts That Play by Different Rules

Not everything follows the standard six-year rule. Watch out for these:

Mortgage shortfalls (where a repossessed home sold for less than you owed): under section 20 of the Act, the creditor has twelve years to chase the outstanding capital, and six years for the interest.
Council tax arrears: the council must apply to the magistrates' court for a liability order within six years of the money falling due (regulation 34 of the Council Tax (Administration and Enforcement) Regulations 1992). But once they have that liability order, there is effectively no time limit on enforcing it.
A County Court Judgment (CCJ): if a creditor already obtained a CCJ against you, the debt is not statute-barred in the same way — the six-year limit is about starting a claim, and that claim has already been decided. (After six years they may need the court's permission to use certain enforcement methods, but that is a procedural hurdle, not a limitation bar.)

Income tax, VAT, and some benefit or tax-credit overpayments can also follow their own recovery rules, so treat those separately.

What the Rules Say Debt Collectors Can and Cannot Do

It is not illegal for a debt collector to contact you about an old debt. But if the firm is FCA-regulated, the rules in CONC 7.15 of the FCA Handbook limit what they can do with a statute-barred one. In broad terms, a firm must not keep trying to recover a statute-barred debt where there has been no contact with you during the limitation period; must not mislead you into thinking court action is possible when the debt is time-barred; and must stop demanding payment once you have stated in writing that you will not pay because the debt is statute-barred. The honest caveat: if the creditor had been in regular contact with you during the six years, the position is more nuanced and they may still be able to pursue it — which is why the dates of your last payment and last contact matter so much.

Statute-Barred vs Your Credit File — Two Separate Six-Year Clocks

These get confused constantly. A default usually drops off your credit file after about six years — but that is a data-retention practice run by the credit reference agencies, not the Limitation Act. The two six-year periods start from slightly different dates and do not always line up. A debt can be statute-barred but still linger on your file, or drop off your file while still (in principle) owed. Removal from your credit report does not decide whether a debt is legally enforceable, and vice versa.

What to Put in Writing

If you believe a debt is statute-barred, the safest approach is usually to write to the creditor or collector — without admitting the debt is yours or that you owe it — stating that you believe it is statute-barred under the Limitation Act 1980 (or extinguished under the 1973 Act in Scotland), that you do not intend to pay, and asking them to confirm they will stop pursuing it. Keep it factual, keep a copy, and do not make a payment or sign anything that admits liability until you are certain of the dates. A clear letter often ends the matter, because a regulated firm knows it cannot take a genuinely time-barred debt to court.

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