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.
The different types of letters you might receive
Not all letters from debt collectors are the same. Understanding what you have received affects how you should respond: a letter of claim (also called a pre-action protocol letter) is a formal notice that legal action may follow if you do not respond within a set period — typically 30 days — and requires a timely response. A simple demand letter is less formal and requests payment without the same legal implications. A Notice of Assignment tells you a debt has been sold to a new owner. A Default Notice is from the original creditor and gives you 14 days to bring the account up to date before formal default.
Asking for information before paying
You have the right to ask the collector for a written statement confirming: the amount owed, who the original creditor was, the date the debt was incurred, any interest or charges applied since the original default, and details of any payments already made. Once you have made this request, the collector should pause collection activity while they gather and provide the information. Do not make any payment until you have verified the debt is yours and the amount is correct.
Communicating in writing
When dealing with debt collectors, always communicate in writing where possible, and keep copies of everything sent and received. Written communication creates a record that can be used if a complaint is necessary later. If a collector calls, it is reasonable to say you prefer to deal in writing and to ask them to put their requests in a letter. You do not have to discuss your finances on an unplanned phone call.