Debt collector chasing money not owed

Hello there. I am Gemma, a legal assistant at Lawyer Destroyer. Dealing with debt collectors can be very stressful, especially when they are asking for money you know nothing about. Please try not to worry, as there is a clear process to sort this out.

Legal position:

In England and Wales, the rules set by the Financial Conduct Authority are very clear. The burden of proof is entirely on the debt collector. They have to prove that the debt exists and that you are the specific person who legally owes it. You do not have to prove your innocence.

If you tell them you dispute the debt, they must pause all their debt collection activities and investigate the matter properly. If they cannot provide solid documentary evidence that you owe the money, they must stop chasing you. Pressuring you to pay an unproven debt or relentlessly contacting you after you have disputed it is against the rules and can be considered harassment.

Practical next steps:

1. Do not ignore them. Although it is tempting to throw the letters away, ignoring them can sometimes lead to the debt collector applying for a County Court Judgment. If you do not reply to court papers, a judgment could be entered against you by default, which creates a huge headache for your credit rating.

2. Send a prove it letter. Write to the debt collection company immediately. State very clearly that you do not acknowledge any debt to them or the original company. Ask them to provide a copy of the original credit agreement or invoice bearing your signature, and a full statement of the account. Keep a copy of your letter and try to send it securely, perhaps by recorded delivery, so you have proof they received it.

3. Look at your credit records. It is highly recommended to check your credit file with the three main agencies, which are Experian, Equifax, and TransUnion. You can usually do this for free online. Make sure this rogue debt has not been wrongly registered against your name.

4. Check for identity fraud or mistaken identity. Think about whether someone with a similar name might have lived at your address, or if there is any chance your personal details have been stolen to open accounts fraudulently. Action Fraud is the UK reporting centre if you believe a crime has occurred.

5. Make a formal complaint. If the debt collector fails to provide proof but keeps sending threatening letters or phoning you, write to them again. Tell them they are breaching regulatory rules, demand that they stop harassing you, and state clearly that this is a formal complaint.

6. Escalate to the Financial Ombudsman Service. If the debt collector ignores your complaint, rejects it, or does not fix the issue within 8 weeks, you can take the matter to the Financial Ombudsman Service. This is an entirely free and independent service. If they find in your favour, they can order the debt collector to wipe the debt, fix your credit file, stop contacting you, and pay you compensation for the distress and inconvenience they have caused.

Things to consider:

It would be helpful to know a little more about the letters you are receiving. Do they state who the original creditor supposedly is? Also, if the debt is actually real but very old, the law might treat it as statute-barred. This generally means if you have not made a payment or acknowledged the debt in writing for over six years, they have run out of time to take you to court.

Please let me know if you would like me to help you draft that initial letter to send to the debt collector, or if you need any more detail on checking your credit files.