A debt collector can pursue a debt, but it should be able to identify what is owed, who owns it and the basis for collection.
Debt collection may be carried out by the original creditor, an agent acting for it, or a purchaser/assignee that has acquired rights to the debt. The first practical questions are who is contacting you, in what capacity, and what account and balance they say is due.
For FCA-regulated consumer credit, conduct rules restrict unfair or oppressive collection practices and require appropriate treatment of customers in financial difficulty.
Key points
- Do not ignore genuine collection correspondence, but do not pay an unexplained balance merely because the letter sounds urgent.
- Ask whether the collector owns the debt or acts for the original creditor.
- If the balance is disputed, state the precise dispute and provide evidence.
- Keep contact records, especially where frequency, tone or vulnerability is an issue.
Agency collection versus debt sale
An agency may simply collect on behalf of the original creditor. If a debt has been assigned, the ownership position is different. Correspondence should make the capacity clear. Ask for account references and a breakdown if it does not.
If you do not recognise the debt
Do not provide unnecessary personal information to an unsolicited caller. Use official contact channels and ask for written details. Identity errors and old addresses can cause debts to be pursued against the wrong person.
If the debt is disputed
Explain the dispute in writing and ask the collector to refer it back to the creditor where necessary. A collector repeating the source creditor’s balance does not resolve evidence that the balance itself is wrong.
In practice
- Keep a contact log of calls and letters.
- Separate “I cannot afford this” from “I do not owe this”; the remedies differ.
- If you need breathing space or debt advice, say so early.
What to do
A practical next-step plan
- Verify the collector and account.
- Request a balance breakdown.
- State any dispute clearly.
- Keep affordable-payment discussions separate from liability if both issues exist.
- Complain about unfair handling to the creditor/collector.
- Use FOS or other sector routes where jurisdiction applies.
Common traps
Things that often confuse the issue
- Do not assume assignment makes a genuine debt disappear.
- Do not reveal security information to unverified callers.
- Do not let repeated collection letters overwrite your evidence of an earlier dispute.
Evidence worth keeping
Reply in writing when the facts are disputed.
Useful wording.
“I dispute liability/amount on the following grounds: [brief reasons]. Please suspend recovery in accordance with the applicable CONC disputed-debt requirements, investigate, and provide the agreement/account records and calculation on which you rely.”
If the firm continues recovery without engaging with a potentially valid dispute, preserve the contacts and complain through the regulated firm’s complaints process.
Collection pressure has limits.
FCA rules require forbearance and due consideration for customers in or approaching arrears/default and prohibit unreasonable pressure to pay in unaffordable lump sums or to raise funds through further borrowing or asset sales. Repeated contact can be challenged where frequency, tone or channel becomes unfair or ignores known communication needs.
Do not confuse firm debt collection with court enforcement. A debt collector is not a bailiff simply because its letter is strongly worded. Court powers arise only after the relevant legal process.
Validly disputed debt should not be collected as though nothing happened.
FCA CONC 7.14 requires a firm to suspend recovery steps where a customer disputes a debt on valid grounds or what may be valid grounds, investigate the dispute and provide the outcome. Where identity or amount is disputed, the FCA rules place responsibility on the firm to establish the correct borrower or amount.
| Dispute | Useful evidence |
|---|---|
| Not my debt | Identity/address evidence and account-opening information requested from firm. |
| Wrong amount | Statements, payments, settlement offers and fee/interest calculation. |
| Already paid | Bank records and creditor receipt/settlement confirmation. |
| Supplier/credit dispute | Agreement, complaint and any Section 75/CCA issue. |
A collector should be able to explain who owns the debt and what is being claimed.
Debt collection may be carried out by the original lender, an agent, or a purchaser to whom rights have been assigned. Ask for the creditor/owner, agreement or account reference, principal balance, interest/charges, payment history and basis of the collector’s authority. Assignment does not permit a collector to invent a different balance or ignore a genuine dispute.
Official sources
Check the rules behind this guide
- FCA Consumer Credit sourcebook (CONC)
- Debt collecting - Financial Ombudsman Service
- FCA CONC 7.14: disputed debt ↗
These are official or primary sources for this topic. Rules, scheme terms and deadlines can change, so check the live source before relying on a formal time limit or procedure.