“There can be no time, no state of things, in which Credit is not essential to a Nation…”

The Limitation Act 1980

Under the Limitation Act, a Creditor is only allowed to chase you for monies owned to them in relation to a debt, for up to 6 years after the last payment, or up to 6 years after contact was made by them. This law only applies to England and Wales, and means that the debt has been “Statute Barred,” and cannot be enforced by a Court.

However, under certain circumstances, the Courts can amend the 6 year period if:

The Creditor has previously obtained a County Court Judgment against you, however you could argue The Limitations Act, and they will need to apply to a Court to enforce the Judgment.

You or someone else on your behalf has made a payment to the account within the last 6 years.

You had initially written to the Creditor admitting you owed the debt to them.

It is a ‘mortgage debt,’ to which the limitation period is for 12 years as opposed to 6 years.

It is a debt related to HM Revenue & Customs, to which there is ‘no limitation’ period for claims.

It is a claim for ‘benefit over-payment,’ to which there is ‘no limitation’ period for claims.

The Administration of Justice Act 1970 s.40

If you have unfortunately become subject to a Debt Collection Agency’s demands, s.40 of the Administration of Justice Act 1970 makes it a criminal offence for a Debt Collection Agency to harass you by causing alarm, distress or humiliation, and extreme frequency of their demands also count towards un-necessary harassment.

The Protection from Harassment Act 1997

All Debt Collection Agencies acknowledge that debtors are entitled to be protected from harassment, and they should not pursue a course of action which deems as harassment. This could be making repeated telephone calls, letters, or attending a person’s property to ‘harass’ them, or attending at unsociable hours, demanding them to pay up, but ‘not’ for routine debt collection.

If a Debt Collection Agency harasses you:

Write a letter of complaint to the Debt Collection Agency and the Creditor who instructed the debt collector, and tell them why they have breached their guidelines. Record all times of visits, calls and letters which are seen as being threatening, and request that they stop harassing you in this way. Here is a Letter of Harassment you can send to the debt collection company.

As with all creditors, it is best to stop the Debt Agency calling by setting out a payment arrangement you will be able to stick to, no matter how small the monthly amount you wish to pay seems. The Creditor should try in every way to accommodate your arrangement. You should also let your Creditor know of the ways in which you would like to be contacted in the future.

If all else fails, then write a letter of complaint to the Financial Services Ombudsman, who will address your concerns and may even award compensation for the way in which you have been treated.