Receiving a letter from a debt collector can be unsettling. But do not ignore it — and do not panic. The right first step is to understand what is being claimed before deciding what to do next.
Step 1: Read the letter carefully
Identify: who is writing to you (the debt collector), who the original creditor is, the amount being claimed, and any reference to legal action. Keep the letter safe.
Step 2: Check the company is legitimate
Search for the company name on the FCA Register (register.fca.org.uk). Most debt collectors must be FCA-authorised. If you cannot find them, or you suspect fraud, do not make any payment and contact Citizens Advice.
Step 3: Check if you recognise the debt
You have the right to ask for a written statement of the debt — the original creditor, the original balance, any interest or charges added, and the history of the account. The collector must stop pursuing the debt while they respond to this request.
Step 4: Check whether the debt is statute-barred
In England and Wales, most unsecured debts become statute-barred after six years of no payment and no court action. In Scotland it is usually five years. A statute-barred debt cannot be enforced through court — but it is not written off. Get advice from Citizens Advice before assuming this applies to your situation.
Step 5: Seek free advice before paying
Before making any payment or agreeing to any repayment plan, speak to a free debt advice service. They can help you understand whether the debt is valid, whether you are being charged correctly, and what your best options are.