Debt Collector vs Debt Purchaser — What is the Difference?
If you have been contacted about a debt, the firm getting in touch may be a debt collector acting for your original creditor, or a debt purchaser that has bought your debt outright. Understanding the difference matters for knowing who to pay and who to complain to.
General guidance only. This page provides general information about UK debt collection. It is not regulated financial or legal advice. For your specific situation, always get free regulated debt advice first.
Free debt advice — always available
If you are dealing with a debt collector or purchaser and are unsure what to do, free regulated advice is available:
StepChange Debt Charity
0800 138 1111
Free confidential debt advice and debt management plans.
National Debtline
0808 808 4000
Free independent debt advice online and by phone.
Citizens Advice
0800 144 8848
Free advice on debt, benefits and legal rights.
MoneyHelper
0800 138 7777
Government-backed money guidance and debt advice locator.
The Key Difference
Debt Collector
Collects on behalf of the original creditor (or a debt purchaser). The debt collector does not own the debt — it is acting as an agent. The original creditor still owns the debt.
- Owns the debt: No — acts on behalf of the owner
- Who you owe money to: The original creditor (or purchaser)
- Who to complain to first: The debt collection firm
Debt Purchaser
Has bought the debt from the original creditor and now legally owns it. You owe money to the purchaser, not the original creditor. They are now your new creditor.
- Owns the debt: Yes — it bought the debt
- Who you owe money to: The debt purchaser
- Who to complain to first: The debt purchaser
Both Are FCA Regulated
Both debt collectors and debt purchasers that deal with consumer credit debts must be authorised by the Financial Conduct Authority. FCA rules require them to treat customers in financial difficulty fairly, communicate clearly and not use misleading or unfair practices.
You can verify any debt collection or debt purchaser firm on the FCA Register at register.fca.org.uk. Learn how to check FCA status.
Practical Differences for You
Who to pay
Pay the firm that legally owns the debt. If a debt collector contacts you, payments typically go to the original creditor (or through the collector). If a debt purchaser contacts you, pay them directly. Always confirm payment details in writing before paying.
Who to complain to
Complain to the firm that is actually dealing with your debt. If a collector is treating you unfairly, complain to the collector first, then the Financial Ombudsman Service. If a purchaser is the issue, complain to them. If you are unhappy with the original lender's behaviour, complain to the original lender.
Notice of assignment
If your debt is sold to a debt purchaser, you should receive a notice of assignment — a formal letter telling you the debt has been sold and who the new owner is. Keep this letter. If you do not receive one, you can ask the debt purchaser to confirm the assignment in writing.
Your rights do not change
Whether your debt is being collected or has been purchased, your rights under the original credit agreement remain the same. A debt purchaser cannot change the terms of the original agreement. You can still dispute the amount, ask for proof, and complain to the Financial Ombudsman Service.
Statute-barred debts
In England and Wales, most unsecured debts become statute-barred after six years with no payment and no court action (five years in Scotland). A statute-barred debt cannot be enforced through the courts — but it still exists, and you may still receive contact about it from collectors or purchasers. Always get free advice from Citizens Advice (0800 144 8848) before assuming this applies to you. Making a payment — even a small one — can restart the limitation period in some cases.
Frequently Asked Questions
What is a debt collector?
A debt collector collects a debt on behalf of the original creditor (or a debt purchaser), who still owns the debt. The collector is acting as an agent — collecting money owed to someone else. Examples include in-house collections teams and third-party collections firms that take on collections under a contract.
What is a debt purchaser?
A debt purchaser buys debt from an original creditor, usually at a discount, and becomes the new legal owner of that debt. You then owe money to the purchaser, not the original creditor. You should receive a notice of assignment telling you that your debt has been sold and providing the new owner's details.
Who do I pay if my debt has been sold?
If your debt has been sold to a debt purchaser, you pay the debt purchaser — not the original creditor. You should receive a notice of assignment explaining this. If you are unsure who owns your debt, ask in writing and keep a record. Do not make any payment until you have confirmed in writing who you should pay.
Are my rights the same whether dealing with a collector or a purchaser?
Yes. FCA rules on fair treatment of customers in debt collection apply equally to debt collectors acting for a creditor and to debt purchasers who own the debt. You have the right to ask for a written statement of the debt, the right to complain, and the right to refer a complaint to the Financial Ombudsman Service. Your rights under the original credit agreement travel with the debt.
Can I ask for proof of the debt regardless of who contacts me?
Yes. Whether a debt collector or a debt purchaser contacts you, you can ask for written confirmation of the amount owed, the original creditor's name, and how the amount has been calculated. They should provide this. You should not make any payment until you have verified the details.
What is a statute-barred debt?
In England and Wales, most unsecured debts become statute-barred after six years if there has been no payment and no court action in that time (five years in Scotland). A statute-barred debt still exists — but a creditor cannot take court action to recover it. Debt purchasers sometimes pursue statute-barred debts. Always get free advice from Citizens Advice (0800 144 8848) before assuming a debt is statute-barred — making a payment can restart the limitation clock.