Financial Conduct Authority
The Financial Conduct Authority (FCA’s) Consumer Credit Sourcebook (CONC) provides guidance on whether a debt is being collected fairly. The FCA does not investigate individual complaints, but its rules can be used when a client is disputing a debt on the grounds of prescription. The FCA’s rules and guidance apply to all debts no matter how old they are.
Key areas of guidance
CONC 7.15.3: in Scotland, a statute barred debt ceases to exist and is no longer recoverable if:
(1) a relevant claim on behalf of the lender or owner has not been made during the relevant limitation period; and
(2) the debt has not been acknowledged by, or on behalf of, the customer during the relevant limitation period.
CONC 7.15.7: 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.
CONC 7.15.8: 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.
Not only will a statute barred debt not be recoverable by the creditor, but the creditor must stop pursuing or threating legal action for a statute barred debt.