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.
Do think about whether you might owe this money!
If your name is James Parker they may have got the wrong person; if your name is Edwina 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.
Contents
When not to send a Prove It! letter
Before you send a Prove It letter, check if any of the following circumstances applies, as there are better options for you in these situations.
The letter is addressed to someone else
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.
Even if the letter has your address, it is not intended for you. This page explains what to do.
You know what the debt is and it is old
If it is 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;
You are sure the debt was settled with the original creditor
This could commonly be for a utility bill for a previous address, or a mobile bill from a previous provider. There is no point in arguing with a debt collector about whether you have been billed for water after you left the property, they won’t have the details.
Instead you need to dispute the debt with the original creditor and tell the debt collector that you are doing this.
The letter has no details about the debt at all
Sometimes debt tracing firms send out a 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 letters continue to come, write and ask for details of the alleged creditor.
You have received court papers
Here 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 or you ignored them? Here 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.
There are two options in the following template.
One says that you have no knowledge that there is a debt. This would be appropriate if you once had a phone contract with X or a credit card from Y but you think the accounts were settled and you don’t owe anything.
The second one is a stronger version if you are sure that you have never dealt with that firm. Only use this if you are absolutely convinced about this.
I am writing in response to a letter from you dated [dd/mm/yy], reference number [abc333333]. A copy is attached.
I have no knowledge of any such debt being owed to [company name]
or
I have no knowledge of ever having [a contract with/credit from] [company name].
If you do not stop collection activity whilst investigating my dispute, you are breaking FCA rules and guidance. Also, ignoring claims that debts have been settled or are disputed and continuing to make unjustified demands for payment is harassment.
Your name
I suggest that you don’t include your telephone number in this letter – dealing with this sort of thing by mail or email is less stressful.
If you send a letter, 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 some of these, they may jog your memory. Not all the items on the list may be available or relevant.
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 anymore – 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 TransUnion. 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.
Can you get compensation for this?
Possibly, but it will depend on how the creditor responded to your Prove It letter.
You usually won’t get any compensation just for being sent a letter about a debt that wasn’t owed if this is soon resolved. It is seen as part of everyday life that sometimes mistakes are made.
But if the creditor ignores your letter and bombards you with letters or texts or emails, or dismisses your complaint when they haven’t provided any proof the debt was yours, or starts court action, then you may be able to get some compensation.
This example from the Finacial Ombudsman looks at some of the points FOS considers when deciding whether to award compensation.
How to ask for a payday loan refund
FAQs on statute barred debt
Misleading & aggressive debt collection
Junior says
I have just received a letter from Cabot claiming a debt of 14k from a Sainsbury’s loan. I think I may have had a loan from them at some point but certainly nothing approaching that huge amount. Also – I guarantee it was beyond 6 years ago. It’s not showing on any of the three credit searches (Credit Karma, ClearScore, MSE). Can I ignore the letter? I’m normally not spooked by letters as I had a rough period with debts but the amount on this has really freaked me out.
Sara (Debt Camel) says
No, it’s not good to ignore this sort of letter.
Send Cabot a Prove It letter.
The name suggested by your email address sounds pretty common – this may not be your debt at all. If it turns out to be, at that point you can look into whether it may be statute barred and also ask Cabot to produce the CCA agreement for the debt.
Lee says
We have two debts outstanding which were sold on to debt firms. Both defaulted over six years ago so have been and gone from our credit file. For both debts, they have been frozen of interest and charges and a token payment plan has been in place (£1 and £5 a month) since 2012 and never been reviewed so they are not statute barred. We get regular statements from one debt and have never heard anything from the other one. It sounds like our best bet is to ask them both for copies of our credit agreements. Would you agree, or should be try stopping payments and see if they react?
Sara (Debt Camel) says
What sort of debts were these?
Ben says
hi Sarah – they are both credit card debts. (sorry for the delay, missed the notification). Ben
Sara (Debt Camel) says
Stopping payments is pointless, they will notice!
As these are credit card debts, yes you can ask them to produce the CCA agreement. See https://debtcamel.co.uk/ask-cca-agreement-for-debt/ which has a link to the template letter to use and do send £1 with each request. [edited]
ben says
Thanks again for your help – PS assume you mean “£1” in your reply.
Sara (Debt Camel) says
yes!
Katherine says
I have been contacted by a debt recovery agency who bought a debt of a mobile phone company. i noted that money was coming out of my bank to this mobile company, however i cannot remember having a phone from them (it was taken out in 2018). when i noticed this money i contacted the phone company and they stated that the SIM had not been used, i also contacted my bank who said that it looked like fraud, so refunded all the money via the direct debit guarentee. I recieved no letters from the phone company for 16months until i recieved a letter from the debt recovery agency.
i have asked both the debt recovery company and the mobile phone company to provide details of the contract, but neither have done so. what The recovery company are still asking for payment. what should I do
thanks
Sara (Debt Camel) says
is this debt showing on your credit record?
The debt recovery company – are they collecting on behalf of the phone company or have they bought the debt?
Katherine says
Hi I have assumed that the company bought the debt. i have sent the “prove it letter” but they have sent another letter giving me 30 days until they start procedings. i havent received a final demand. i am about to write another prove it letter but dont know whether i should just ignore thier last letter thanks
Katherine says
Actually i have a letter from the phone company that they sold the debt
Sara (Debt Camel) says
Did you have anything in writing from your bank when they refunded the payments – an email of a secure message to prove what happened?
katherine says
hi with reference to the Credit record – i have just signed up to Experian and there is no record of the debt at all in fact my rating is 976. there are records of other phone contracts which are settled and one existing, there are no default ones, the phone provider is not listed.
this gets stranger and stranger.. thanks
Sara (Debt Camel) says
ok, this is a bit like sleuthing… now check your Equifax and TransUnion credit records – see https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to do this.
Katherine says
Thanks again sarah, no details on the credit checks though other phone contracts do exist (close). I will write another prove it letter to them..
Sara (Debt Camel) says
No don’t just send the prove it letter again – it didn’t work the first time, it’s not magically going to change now.
You first need to report the issue to Action Fraud by calling 0300 123 2040. explain you thought it had been dealt with at the time but you are now being chased for a debt you never took out. they won’t do anything but they will give you a crime refernce number, which is what you need.
Then write to the debt collector and mobil co (email is fine) and say what has happened, that it was a case a fraud, give them the crime reference number and details of what happened. Say you have never had a contract with that mobile co. Ask for confirmation than they will not be contacting you again in future.
As the debt doesnt appear on your ccredit record, you don’t need to ask for this to be removed.
If you get any more letters next year asking you to pay, contact National Debtline in 0808 808 4000 and ask for their advice,
Katherine says
Thanks again sarah, i just went on action fraud and it seems i reported it in 2020, but they said it wasnt a police reportable offence, but i updated it any way.
Dont why they call it action fraud, as they dont take action
Katherine says
Hi Sara, I sent the complaint letter to the company re-iterated the point that they must prove the debt, however they have skirted around the prove it point and have stated “Mobile phone contracts are not regulated agreements under the provisions of the Consumer Credit Act 1974. there is no statutory requirement to sign an agreement in order to obtain an account of this kind”
They also said that ” Inserting the SIM Card and using the service is taken as an agreement of the terms and conditions of your agreement”
they have given me 30 days to reply.
But my point still stands, That i have never had a three sim Card, i have also confirmed with Three by phone that the data has not been used. i have also asked for call records as proof of this, but they havent been able to supply this..
where to I go from here?
Thanks again
Sara (Debt Camel) says
which debt collector is this?
I assume you did not ask for a copy of the CCA agreement?
Katherine says
Hi again, i didnt have a contract with three, though they took money out of my bank, which was recovered by my bankk, under the direct debit gaurentee. Then 16 months later i received a letter from three saying i owed the full amount, that same day i received a letter from lowell saying that they are now the debt owners, but in all thier letters they havent said how much the debt is for. Despite many conversations with three and lowell, they havent been able to provide the agreement or call records to prove that i took the contract out.
Once again i have anothet 30 says to repsond to lowells,
Thankyou again
Sara (Debt Camel) says
How did Three have you bank details?
Katherine says
Hi Sara
This is Lowells stating this, as they bought the debt from Three. I have asked for the agreement multiple times from both Three and Lowells and every time it hasn’t been forthcoming. Lowells actually haven’t said in any of their letters what the amount of debt they are chasing.( I know the amount as I received a letter from three, two years ago, but nothing from Lowells.)
They have stated that i can refer this to the dispute resolution ombudsman, so do i do this? and/or do i wait until they move to court procedings?
Sara (Debt Camel) says
I know the amount as I received a letter from three, two years ago,
I thought you said you never had an account with Three.
Katherine says
H sara, that i dont know
Sara (Debt Camel) says
I suggest you send a subject access request to Three asking for a copy of all your personal information. Email DPA.Officer@three.co.uk and say you have never had a contract with Three, but Three have said you have (give some details) so you would like them to send you a copy of all personal information Three holds about you, including recordings of any phone calls. Give your full name, date of birth, home address, email address and explain if any of these have changed over the last few years and give the previous ones.
Also send a formal complaint to Lowell. You can phone them or use their online form https://www.lowell.co.uk/contact-us/. In either case be clear that you are making a complaint, that you dispute the debt as you never had a contract with Three and that you reported this to Action Fraud in 2020. Point out the CSA code of practice says a member should cease recovery activity while investigating a complaint.
.
John says
Hello. I have had a letter from resolvecall that they plan to visit me for a debt for ‘loanstogo’ of around £1400. This shows on my credit file as Paid and Closed with an start date of 24 Sep 2013 and an end date of 14 May 2020. I have an email from ‘loans to go’ on 19 May 2020 stating “Due to the ongoing pandemic and the consequential financial burden it’s having on some of our customers, we have decided to completely close your logbook account with reference: XXXXXXXXX as a gesture of goodwill. “
This means you are no longer required to repay the outstanding balance on the said loan agreement.
Please can you advise how I proceed to deal with Resolvecall. Do I simply forward them the email from loanstogo, or do I need to do something else?
Thank you so much for any assistance
John
Sara (Debt Camel) says
Are Resolvecall collecting on behalf of Loans2Go? Or a debt collector the debt has been sold to?
John says
Thank you so much for your response. Resolve Call state they have been instructed by ‘lantern’
Thank you again, I cannot tell you how much I appreciate the help with this!
John
Sara (Debt Camel) says
OK Lantern is a debt collector and they are likely to have been sold the debt by Loans2Go. Have you had any letters or emails from Lantern?
Jon says
Thank you for coming back to me.
No, not that I can remember or am aware of.
What is the best course of action for this please?
I can’t tell you how much I appreciate your help
Thank you
Jon
Sara (Debt Camel) says
OK, then I suggest you email Loans2Go complaining that they seem to have sold your debt to Lantern despite saying they had written it off – attach the previous email from them saying this.
And also email complaints@lanternuk.com, copy it to resolve call if there is an email address for them, and say you do not know why Loans2Go sold Lantern your debt as they had told you it was written off in 2020. Attach a copy of the loans2Go email saying this. Ask Lantern to confirm they will not be contacting you further about this.
John says
That is amazing. Thank you so much for your help. Would you like me to let you know how I get on?
Thank you so much for all of your help
John
Sara (Debt Camel) says
yes do!
Was this your first logbook loan from Loans2Go?
John says
Please accept my apologies. It appears I misread the letter in my stressed out stat earlier on.
The original creditor on the letter is ‘CASH ON GO PAYDAY LOANS &more’ and states it is for £1635.97
I have had a look online and it states the company is no longer trading & had a few companies under it.
I have searched my whole credit file and there is nothing under that name or for that amount showing.
The likeliness is, I did owe money on a payday loan thing or similar from when I was much longer and immature, but as mentioned, this does not appear anywhere.
The chances are, any money that was owed would be from 8+ years ago as a minimum.
I’m really sorry to mess you about, but what is the best way to deal with this please?
Thank you so much once again, you really are so helpful!
John
Sara (Debt Camel) says
Cash on Go is better known as Peachy – does that ring a bell?
John says
It does from many many years ago (around 7 as an absolute minimum) but certainly not for an amount anywhere near that! As I say, there is nothing similar to peachy, cash on go or otherwise on my credit file & nothing for anywhere near that amount
Thank you & I’m sorry again for getting the original info wrong
Sara (Debt Camel) says
Then read https://debtcamel.co.uk/statute-barred-debt/ and talk to National Debtline about how you should reply to Resolvecall as this debt may well be statute barred.
John says
Thank you so much for all of your help. I will let you know how I get on
Have a lovely evening
John says
Hello. I spoke with debtline who advised to send the statute barred template by email. I have done so and have just received the below response from lantern
Thank you for your recent email.
To ensure the ongoing security of your personal data and to comply with the current data protection laws, we must verify your identity before we can discuss your account. Please can you confirm:
• Your full name;
• First line and postcode of your address;
• Your date of birth;
• Your email address.
Upon receipt of this information we will be able to complete your request. You can contact one of our agents by telephone on 0113 887 6876 (Monday to Thursday 8am to 7pm, Friday 8am to 6pm or Saturday 10am to 1pm).
We look forward to your speedy response.
Yours sincerely
Lantern
Do I reply with all of the info they have requested? I really don’t feel comfortable sending them all my details
Thank you once again
Sara (Debt Camel) says
They already know who you are and where you live. You aren’t telling them anything they don’t know. They just need to confirm that it is you who has emailed them.
John says
Hi Sara,
Lantern have gone quiet on the above and haven’t sent anything or acknowledged my email to them since. They have however sent a letter today chasing for 2 debts. One for around £200 which I was aware of with a default date of August 2016 (very nearly 6 years!) and one for £99 which is from around 10 years ago and they state ‘will be reviewed by the relevant department due to the age of the debt & will update me accordingly’
My question is, have I acknowledged the debt for around £200 by communicating with them over the original £1600 as mentioned above, or are they attempting to get me to communicate with them over it? They state they have referred the £200 to their ‘carefully selected partner QDR Solicitors’ as always, thank you so much for your help
Sara (Debt Camel) says
Talking to them about one debt does not acknowledge any other debt.
It sounds as though you have the routine “coming up to 6 years” communication.
John says
Thanks so much for this Sara. You are completely correct. I am just coming to the end of things falling off my file from when I was young and stupid! So, would the best advice be to try and ignore this and not have any kind of communication with them on this? I know in an ideal world I would just pay this, but unfortunately that isn’t possible at this stage and I really am doing all I can to improve my credit score which is already making huge progress
Thank you again
Sara (Debt Camel) says
Don’t ignore it unless you want a CCJ which will screw your credit record up for another 6 years…
What sort of debt was this £200 debt?
What are the rest of your finances like at the moment – could you make them a settlement offer? Do you have other problem debts that you haven’t been paying? payment arrangements for any other debts? Any newer debts you are currently making normal payments on?
John says
Hi Sara
It was for safety net. It’s hard to raise anything at the moment with the cost of living and 2 young kids.
In terms of a settlement, are you saying to contact QDR solicitors and offer a reduced amount in final settlement? If so, how much would you advise? The total is around £240
Thanks again
John
Sara (Debt Camel) says
Safetynet Credit? How long did you use them before it was defaulted and sold? Because they are one of the easiest lenders to win an affordability complaint against if you used them continouously. If you win a complaint then you could get a refund of the interest you paid and all negative marks removed from your credit record.
Have you used other high cost credit as well?
It may not make any sense to offer them a settlement ifeverything else is very tight – can you answer my questions about your other debts?
You can’t treat debts individually – that’s like trying to play whack-a-mole – if you can settle this one, you just have less money for the next one that pops up.
John says
Hi Sara,
No, it was a one of thing over 6 years ago that was never paid back. As I say, I was young and very foolish.
I had a lot of stuff on my file which has all fallen off last year, and I only have this & a very old EE bill which falls off next month.
I only have one credit card now (Aqua) which I use very sensibly and have no balance on, so theoretically could pay this £240 with that, but not sure they’d even accept a CC for payment?
In terms of settlement, if that is my best option, what would you suggest as I certainly don’t want a CCJ
Thank you again
Sara (Debt Camel) says
I certainly wouldn’t suggest paying this on a high interest credt card like Aqua. Even if Lowell accepted a 50% settlement offer, the interest on the Aqua card could soon add up to more than that.
Why not just offer then £5 a month?
John says
Hi Sara,
Are they likely to accept a figure so low?
Thank you
John
Sara (Debt Camel) says
yes if it is all you can afford. I suggest you talk to National Debtline on 0808 808 4000 and ask them to help you draw up an income & expenditure statement that shows what you can afford. This needs to take into account all the price rises coming in April – enrgy bills, council tax, broadband, mobiles, national insurance and of course petrol and food.
You can then show the i&E when you make an offer.