If you get a letter saying you owe money on a debt you don’t recognise, or which you thought you had paid off, you need to challenge the creditor to prove that you do owe the money.
Sometimes debt collectors have simply got the wrong person. This is sometimes called a mis-trace.
This is what the Financial Ombudsman says about mis-traces:
We would ask a debt collector to provide evidence to show that they are seeking repayment from the correct person. It would not be enough to say, for example, that the person has the same name as the borrower or hirer, or even the same name and date of birth. We would look for some convincing reason to link the person to the debt.
First think about whether you might owe this money? If your name is James Lewis they may have got the wrong person; if your name is Edith Chicken that’s less likely. If it seems to be a debt to Orange and you have been with Vodafone for the last 15 years, it probably isn’t yours etc.
When not to send a Prove It! letter
Before you send a Prove It letter, check if any of the following circumstances applies:
- if the letter is addressed to someone else but has your address, this page explains what to do. (NB this is meant for when the letter clearly isn’t for you – not if it has your maiden name or the name is slightly mis-spelled);
- you know what the debt is and it is old, more than six years since you last made a payment to it, then you need to talk to a specialist debt advisor, not reply to the creditor. The time limit for recovering the debt may have run out, so you need to find out more about Statute-Barred Debt and talk to National Debtline;
- the letter has no details about the debt at all Sometimes debt tracing firms send out very vague letter, just inviting you to get in contact. See Reunite or Prime Location Services – contacting you about a debt for an example. In this case you could decide to just ignore it. But if letter continue to come, take action!
- if you have received court papers, you don’t have time to send a Prove It letter as there are tight timescales to enter a defence. Don’t ignore court papers, or you will get a CCJ. Read What to do if you get a Claim Form and contact National Debtline as soon as possible if you are unsure;
- if the letter says there is already a CCJ (perhaps the court papers went to a previous address?) then the Prove It letter below is not appropriate. You can see if there has been a CCJ issued in the last six years by checking the Trust Online database. If there is a CCJ for a debt you do not recognise, talk to National Debtline about applying for the CCJ to be “set aside”.
Send a Prove It letter
But if you don’t think the debt was ever yours, or you are unsure and it isn’t likely to be close to six years old, then you should write a “Prove it!” letter to the debt collector. Neither deny nor acknowledge the debt, just ask them to supply proof that the debt is yours as follows:
I am writing in response to a letter from you dated [dd/mm/yy], a copy is attached.
If you have reason to believe that a valid debt exists and that the Debtor resides at this address, then please prove the debt in writing.
The FCA rules say you cannot continue any collection activity until you have done so.
Your name
I suggest that you don’t include your telephone number in this letter – dealing with this sort of thing by mail is less stressful. Keep a copy of this letter and send it recorded delivery.
The proof, when and if it comes, should be enough of the following list to prove that you do (or did) owe the money, or indeed indicate that it is somebody else who is the Debtor:
- Credit Application; Loan Agreement;
- Statement of Account showing details and dates of debits and credits including payments, interest and charges to the account and the current amount outstanding;
- Copy of Default notice, copy of formal demand; and
- where the debt has been sold, copies of letters from original creditor stating that, plus letters from the current creditor stating that.
If they can produce these, they may jog your memory. Not all the items on the list may be available, but enough of them have to be to clarify the situation if they want to pursue you.
After you have sent a Prove It letter
You don’t get a reply
If it all goes quiet, then the debt collector may have been on a ‘fishing expedition’ and decided not to bother you any more – so if you don’t hear anything, just file the letters away somewhere and don’t worry.
But if this incorrect debt is showing on your credit records, you want that sorted. Write to the debt collector again after a few weeks, repeat that this debt is not yours and tell them to remove the entry from your credit records with Experian, Equifax and Call Credit. In this case you should also inform the Credit Reference Agencies that the debt is in dispute.
More demands arrive
If they don’t reply with any proof after a few weeks but letters demanding payment continue to arrive, then write a second letter with COMPLAINT in capital letters at the top.
COMPLAINT
On dd/mm/yy I ask you to provide proof that I owed the alleged debt to xxxxxxx. I attach a copy of my letter.
The FCA rules are clear that ” Where there is a dispute as to the identity of the borrower or hirer or as to the amount of the debt, it is for the firm (and not the customer) to establish, as the case may be, that the customer is the correct person in relation to the debt or that the amount is the correct amount owed under the agreement.”
I do not owe this money. You have failed to produce any evidence that I do. If you do not cease to contact me about this debt I shall be complaining to the Ombudsman.
[Please also delete the incorrect entries from my credit records.]
Your name
I have looked at one reader’s case where the debt collector was sending very misleading letters here: “Debt collector can’t prove it’s my debt but wants payment”.
Going to the Ombudsman – which Ombudsman?
If the debt collector ignores this second letter, then I suggest you complain to the relevant Ombudsman after 8 weeks. During this time, make sure you keep a record of any more demands from the debt collector – by phone, text, email or letter.
This will be the Financial Ombudsman (FOS) if the debt appears to be a loan, credit card, catalogue or an overdraft. How to send FOS your complaint is described here.
For other types of debt (energy bills? mobile phones? etc) there are different Ombudsman. Sometimes one will be mentioned on the letter you have received. If not, phone National Debtline and ask who they think you should complain to.
How to ask for a payday loan refund
FAQs on statute barred debt
Misleading & aggressive debt collection
Kenneth T says
Hi,
A person took out multiple phone contracts in my name, without my consent. I have contacted the providers but they state that because I know the person, it is not there issue. I have been to the police and they have said it isn’t a criminal issue. Whilst the person used my name and dob plus an old address; they didn’t use my bank details and I didn’t sign any contracts. This happened three years ago and I have consigned myself to waiting the 6 years; is it advisable to send a prove it letter to theM. What recourse do I have as the signature isn’t mine and the bank details are not mine either but as stated I know the person but they did not live with me or use my most current address?
Thanks
Sara (Debt Camel) says
Do you have a crime reference number from the police?
if not, then report the person now to Action Fraud: https://www.actionfraud.police.uk/reporting-fraud-and-cyber-crime
Then when you have done that, don’t send a Prove it letter, send the them a complaint saying you have explained this is identity theft, you never took out these contracts, you never received the phones, you bank account was not used, you have reported the person you think did this to the police/Action Fraud and the reference number is xxxxxxxxxxxxxx. Ask them to delete the credit records from your file.
C D says
Hello, I have submitted a prove it letter to Cabot, and they have responded to say that it is reasonable to assume that I received correspondence to my address as they are aware of another loan that was taken out around the same time, and that account I have paid in full. It states they have been unable to obtain the agreement, but based on their findings they believe I owe this money.
They have also offered my 50% reduction in the amount of money owed ! It sounds to me like they have no proof at all that this debt was mine and that I should pursue with the second letter.
Sara (Debt Camel) says
what sort of debt was this? How old? is it currently showing on your credit record?
CD says
Hi, this does not show on my credit file.
It looks like it is for a vehicle purchase which was opened in 2006. It says the account remained open for 4 years and 3 months and a default was registered in Sept 2010. Payments were made up until Aug 2015. The account was placed with MCS in August 2017 who contacted me, and I asked them to provide proof of debt as I do not recognise Santander as someone I ever owed any money to. I never heard anything from MCS, but apparently they were unable to provide proof of debt from Santander so passed it to Cabot, who contacted me last month. Cabot say they have received an authorisation form from Santander regarding the sale of the account, on which it details “the whereabouts of the vehicle” as “presumed with cus”. Cabot then state that although they have been unable to obtain the agreement based on this document they believe the loan was for a vehicle and that I am responsible to pay the debt.
They have offered me 50% discount, however, I do not recognise ever having any agreements in place with Santander, during this time or any other time.
Sara (Debt Camel) says
Then I suggest you reply that to the best of your knowledge you have never had car finance from Santander. If you don’t think you had car fiance from anyone which you defaulted on in 2010 you could add that too. Say you consider the alleged debt is unenforceable unless they can produce the CCA agreement for the loan and you will not be making any payment to the debt until they can do this as this will prove if the debt is yours.
R H says
I left Lloyds Bank in 2016 and they claimed i was overpaid my salary by £600. So they sent Drydensfairfax to reclaim the amount. I set up a £40 per month payment plan to pay this back and Drydensfairfax are regulated by the FCA. I had a letter stating I was owed about £1k from my Lloyds pension but most of this was taken without my permission to pay back the £600 and the repayments stopped. I recently gave evidence that they underpaid me by one day as Lloyds had the wrong leaving date. So if the debt they chased me for was wrong because the leaving date was wrong and broke a repayment agreement, am I due any compensation and is it worth complaining?
Sara (Debt Camel) says
Where did you give evidence?
R H says
Can I have my full name removed sorry and put as R H. I sent evidence to Lloyds HR – had to raise a DSAR request to show dates of last emails sent to prove my last working date. This has been resolved now and Lloyds HR will refund me £70 for underpaying me. So therefore the original debt requested by drydensfairfax initially should’ve been lower by £70. Do I have any rights and is it worth taking it to the ombudsman for any compensation
Sara (Debt Camel) says
So Lloyds are giving you the £70. I’m not sure you have lost any more money because if the error? You could go to your local Citizens Advice and ask. Thus isn’t a debt that would beckvered by the Financial Ombudsman.
Yas says
I keep getting penalty charge debts under a name that does not live here. The debt company asked id I ever knew this person I said 13 years ago was last time I saw him they said they will pursue the debt under my address the debts have accumulated to over £1000 and I am so stressed out. Please help sgould I send a prove it letter ?
Sara (Debt Camel) says
No, the debts are not yours.
If you ever have a bailiff turn up, tell them to go away, the person has not lived there for 13 years and you have no idea where he is.
Gill says
My partners ex wife took out a loan in his name unbeknown to him she applied online in his name and assume she ticked a box for the signature.
The money went in her account and she paid the first 2 years of the loan until they separated then she said she can’t afford it. He have tried to say he never took out this loan over several phone calls to the bank.
He heard nothing for months then gets a statement with added interest at our new address which was a shock as he assumed after several months she had paid and took responsibility.
He contacted the bank again and is waiting for a response what else can he do as this is fraud?
He has asked for the loan agreement which they haven’t sent, should he send a prove it letter?
Sara (Debt Camel) says
He can report this to the police as fraud see https://www.actionfraud.police.uk/reporting-fraud-and-cyber-crime and then tell the lender the crime reference number.
Frustrated says
Good luck!
Several years’ ago, a family member took out multiple loans etc in my name whilst I was overseas.
First I knew of it was when I got back.
I had the person arrested and it went to court.
The person pleaded guilty and got sentenced BUT the banks STILL wouldn’t repay me!
Sara (Debt Camel) says
Did you send the banks a formal complaint? Did you take this to the Ombudsman?
Frustrated says
Tried everything. Got nowhere.
Ombudsman couldn’t help as I live on IoM and they don’t cover here.
Left me over £10K out of pocket and with one less family member.
Sara (Debt Camel) says
ah, Isle of Man – that’s very unusual, normally I would have expected the Ombudsman to be able to resolve that, so hopefully Gill would not have that sort of problem.
SteveD says
Hi there.
We received a debt collection letter for several thousand pounds which we do not owe last month. As advised on here we sent the Prove It Letter. They have now replied with the following…..
“I can confirm that due to Data Protection Regulations before we provide any further information on this account we need to ensure that we have contacted the correct person. As we have been provided with your address as a possible forwarding address for the person we are attempting to contact we need you to confirm your previous address and date of birth. We can then provide you with further information we hold on the account. If your previous address does not match the address that our client provided then we will know that incorrect information has been provided and we will amend our records. You will then receive no further communication from us with regards to this matter. A hold has been placed on the account until 2 September 2020 to await your response. After this date the account will revert to normal collection activity.”
I’m loathed to give a company I’d never heard until last week personal information. My feeling is to send the COMPLAINT letter, but any advice would be appreciated.
Sara (Debt Camel) says
Have they said what sort of debt this is and who the original creditor was? Who is the debt collector?
SteveD says
They haven’t said what sort of debt it is, only that it is to Tesco Bank. The debt collector is Westcot Credit Services.
Sara (Debt Camel) says
Have you ever had an account, loan or credit card from Tesco? If the answer is no, I suggest you tell them that and you will not be providing any further information unless they produce some evidence that you owe this money.
If you have had an account with Tesco, I suggest the simple thing to do is to give your details.
SteveD says
There was a loan over 12 years ago, but that was paid off and closed at the time. That’s why I thought the Complaint letter was worth sending. Do you think that would be an appropriate way to go?
Sara (Debt Camel) says
No, I think you should give them your details and try to settle it that way.
David Johnson says
Hi I have had water bills and unpaid council tax owed at an address in manchester when I have lived in london all my life.
I’ve spoken with Salford city council who said they would suspend the process and hopefully I wont hear anything after 30 days, I also told them that I was recording the phone call and they had 30 days to remove my details otherwise I would charge £50 for each subsequent letter relating to that debt.
I had the address that was in question in manchester linked to my credit file and despite my name being David Johnson which is the person they are chasing, they are after a David “James” Johnson and my middle name is not James.
I’ve managed to successfully get TRANSUNION to finally remove the manchester address from my credit file and yet 30 days after speaking with Salford city council I then received 4 letters to David James Johnson in regards to the debt but all having 4 very different amounts.
I am livid about this as its putting a lot of stress on my mum for the fear of bailiffs turning up at our doorstep. How do I go about recovering the £200 that I told them I would charge £50 per letter that I originally told them I would charge if they didn’t remove my details after 30 days and how do I get them to stop sending letters because the address is no longer linked to my credit file
Sara (Debt Camel) says
Have you checked to see if the address is linked on Experian and Equifax?
Are these letters from the Council or from a bailiff?
David Johnson says
I was using credit karma to check my credit score and yes the address was linked.
I had to make an appeal to TRANSUNION to contest it and was successful in my appeal so now the address has been removed from my credit file.
The letters are from equita, when I 1st got in contact with them back in July they told me that salford city council was their client and I would need to get in touch with them. When I did get in contact with salford city council they told me that they would suspend it for 30 days and that hopefully it should be the end of it. So when i said because they had the wrong person they had 30 days to remove my details otherwise I would charge 50 per subsequent letter it was almost like they took it as a challenge by sending me 4 at once
Sara (Debt Camel) says
There are three different credit reference agencies in Britain who each maintain a credit file for you. They don’t talk to each other. So you also need to check your Experian and Equifax reports ( see https://debtcamel.co.uk/best-way-to-check-credit-score/ for how) to see if the Salford address is on there and get it removed if it is.
I suggest you send Salford a complaint. Use their online form. This page https://www.salford.gov.uk/your-council/have-your-say/complaints/complaints-procedure/ Has the link and describes how the 2 stage complaints procedure works.
Tell Equita that you are the wrong person and you have sent Salford a formal complaint.
Realistically your aim at the moment should be to get this to stop rather than to try to get any money back. You have been sent 4 letters because of incompetence, not as a challenge.
David Johnson says
Thanks Sara I’ll fill in the complaint forms and keep you updated with any progress/responses.
To be fair my priority is to get them to stop but I got to admit that I get so angry with these kind of companies that harass and threaten innocent people that some of them need to get stung.
Quick question, when I spoke to Salford back in July they said the case had already gone to court and won in their favour, if I got the address removed from my credit file would the ccj or whatever I got as a result of this going to court stay on my credit file and is there a way of getting this removed as well
Sara (Debt Camel) says
I understand your pain.
They will have got a “liability order” from a magistrates court, not a CCJ from a county court. A liability order will not show on your credit record.
Scott R says
Hi, I’ve received a letter from Lowell relating to a Shop Direct account I had which defaulted on 28/10/2014 (amount £1500), which I assume means that this default will ‘drop off’ my credit file on 29/10/2020 (6 weeks time from writing). The debt is mine, I haven’t acknowledged it since the default date. Lowell’s letter states that they are offering me a chance to agree to a payment plan before they “proceed with their assessment to decide whether to take legal action”. I was considering sending them a Prove-it letter, is this worthwhile? Do they have to respond within a certain amount of time? Or will they just go ahead with court action without responding to me?
I am more than likely going to contact them to agree a payment plan before they go to court, however will this mean the default will stay on my credit file for another 6 years when it is so close to being removed?
Any help is much appreciated.
Sara (Debt Camel) says
Have you had a letter which looks like the one mentioned in here: https://debtcamel.co.uk/letter-before-claim-ccj/?
Defaulted on… is this the default date which shows on your credit records?
Adam says
Hi, I am being chased by Halifax and debt collection agency for a mortgage shortfall dating back to May 2008 when my home was repossessed. The amount in question is £50k. The demand letters never state whether the creditors took out a CCJ against me or not.
I understand that if there was no CCJ taken against the debtor (me), the mortgage shortfall becomes statute barred and unenforceable in 12 years but if a CCJ was obtained then it is ALWAYS enforceable, i.e. if i were to purchase a house now or 10 years down the line, they can technically come after me any time and place a charging order on my property so the sword will always hang over my head.
1) is that true? and
2) how do i find out if Halifax ever took out a CCJ against me for this shortfall? (i have not contacted them or debt collection agencies since the repossession in 2008 and do not want to contact them in case i open up a jar of worms)…I would really like to buy a house next year with the little money i have saved but if the house is going to have a charging order placed against it, then no point…PLEASE ADVISE!
Many Thanks in advance..
Sara (Debt Camel) says
I will say what I always say in this sort of situation in case other people read it – it is a great pity you didn’t go bankrupt in 2008. If you had This debt would have been wiped out and you wouldn’t now be having this sort of worry. I know that doesn’t help you at all.
Have you looked at your credit records with all three credit reference agencies? See https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to do this.
Have you looked on Trust Online to send if any debt collector has taken out a CCJ using your old address or your current address as see https://debtcamel.co.uk/do-you-have-ccjs/?
These two sets of checks will only see CCJs taken in the last 6 years. There coukd have been one before 6 years which will not show. CCJs never become statute barred but after 6 years a creditor has to go back to court to get permission to enforce them and this is very rarely given.