How do I deal with a debt letter that is not mine?

Debt letters arrive at the wrong address, for the wrong person, or for debts that were settled years ago. The process for dealing with it is well established and puts the burden of proof on them, not you.

Safety

Step by step

1. Do not ignore it.Unanswered letters escalate, and a county court judgment can be entered against you without you ever appearing. Responding early is far easier than setting aside a judgment later.
2. Do not pay or acknowledge it.Making a payment, or agreeing in writing that the debt is yours, can restart the six-year limitation clock. Never do either for a debt you do not recognise.
3. Work out which situation you are in.Not you at all, previous occupant, mistaken identity, a debt you already paid, or one you do not recognise but might be yours. Each needs a slightly different response.
4. Send a prove-it letter for anything unrecognised.Ask them to provide a copy of the credit agreement and a full statement of account. Under the industry rules they should stop collection activity until they do, and a fair number cannot produce it.
5. Do not sign it.Type your name rather than signing. A signature on correspondence with a collection agency is best avoided.
6. Reply for a previous occupant.Write saying the person is not known at this address and you have no forwarding details. Do not open their post, and do not write anything on it beyond returning it to sender.
7. Keep everything in writing.Avoid the phone. Written correspondence gives you a record, and it stops the pressure tactics that phone contact allows. If you must speak, follow it up in writing.
8. Keep copies and proof of posting.Every letter sent and received, dated. Free proof of posting from a post office is worth having on anything significant.
9. Check your credit file.Free through the statutory reports or the main agencies. If the debt appears against you, dispute it directly with the agency, which must investigate.
10. Know about limitation.In England and Wales most unsecured debts become statute-barred after six years with no payment or written acknowledgement and no court action. It does not erase the debt but it stops enforcement.
11. Complain if they persist.If they continue collection without producing proof, complain to the firm, then to the Financial Ombudsman Service. Persistent contact after a reasonable dispute is a regulatory matter.
12. Get free help rather than paying for it.Citizens Advice, StepChange and National Debtline are free and independent. Never pay a company that offers to write these letters for you.
13. Act quickly on anything from a court.A claim form has a short deadline and the process is different. Respond within the stated time and get advice immediately.

Tips

• Never pay a penny towards a debt you do not recognise. Payment can restart the six-year clock.
• Everything in writing. The phone exists to apply pressure and leaves you no record.
• Free help exists — Citizens Advice, StepChange, National Debtline. Never pay for it.

Common mistakes

• Ignoring the letters — They escalate to court, and a judgment can be entered without you being present. Setting one aside afterwards is far harder than replying now.
• Making a small payment to make it go away — It acknowledges the debt and can restart the limitation period, converting an unenforceable debt into a live one.

If it doesn't work