Debt Sold to a Collection Agency UK: Your Rights

A letter from a company you have never heard of says you owe them money, and the bank it names has not written to you in years.

Based on StepChange and Debt Camel. This covers the UK. For one named buyer, see what to do when your debt is sold to Lowell.

What changes, and what does not

These points come from StepChange and Debt Camel. The original creditor should tell you when they sell, and the new owner’s letter should name the new owner, the original creditor, usually the account number, and where to send payments (StepChange).

What to do with the letter

• Check it is genuine. If in doubt, call the original creditor to confirm the sale (StepChange).
• Do not keep paying the original lender. You no longer owe them anything (Debt Camel).
• If you do not recognise the debt, reply asking them to prove it (Debt Camel).
• Check the age of the debt with the statute barred checker, then read how statute barred debt works.
• Tell them what you can afford. Debt Camel says never borrow to pay a collector, and that most will allow a break if you explain priority-bill arrears (Debt Camel).

Will they take me to court?

They can apply for a CCJ. Debt Camel says collectors would rather agree payments, but ignoring them makes court action more likely, and bailiffs can only be sent after a CCJ that you are not paying (Debt Camel). Read what happens if you ignore a CCJ and what to do if collectors turn up at your door.

Worried about stopping payments entirely? This guide explains the realistic outcomes.

What readers often ask

Can my debt be sold without asking me?

Yes. Debt Camel says you will not be asked to agree and you cannot object to or stop the sale (Debt Camel). StepChange says it is a normal part of debt collection for loans, credit cards and overdrafts (StepChange).

Who do I pay now?

The buyer. StepChange says once your debt is sold you owe the buyer, not the original creditor (StepChange). Debt Camel says not to keep paying the original lender (Debt Camel).

Do I still owe the full amount?

Yes. StepChange’s example is a £100 debt bought for £70, where the buyer can still ask for £100 (StepChange).

Can they add interest and charges?

StepChange says they cannot add interest or charges unless these are in the terms of your original credit agreement (StepChange).

Do I keep my rights?

Yes. StepChange says you keep all the same legal rights and the buyer must follow the same rules as your original creditor (StepChange).

Does the sale restart the six-year limit?

No. Debt Camel says the six-year period does not start again after the sale, but that if you have been making payments the debt will never become statute barred (Debt Camel). Check yours with the statute barred checker.

What if I don’t recognise the debt?

Debt Camel says to reply telling the collector to prove it, because it is their job to show you are the borrower. If they say you owe, ask for a Statement of Account (Debt Camel). A vague letter may be a fishing expedition and can usually be ignored unless it continues.

Will the debt show twice on my credit file?

Debt Camel says two default entries may appear, but one shows a zero balance and only one is counted in your credit score (Debt Camel).

For a quick read on formal debt relief, try the bankruptcy and DRO checker.

Keep reading

• Debt Sold to Lowell? What to Do in the UK (2026)
• Statute Barred Debt UK: How the 6-Year Clock Works (and What Resets It)
• Debt Collectors at the Door UK: Your Rights
• Car Finance and PCP Arrears UK: What Happens

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