When to send a Prove It letter about a debt

Woman reads a letter from a debt collector and thinks that she doesn't owe this money - she should send a prove it letterIf you get a letter announcing you owe cash on a debt you don’t recognise, or which you concept you had paid off, you want to problem the creditor to end up that you simply do owe the cash.

Sometimes debt creditors have merely were given the mistaken individual. This is often referred to as a mis-trace.

This is what the Financial Ombudsman says about mis-traces:

We would ask a debt collector to supply proof to display that they’re looking for compensation from the right kind individual. It would now not be sufficient to say, for instance, that the individual has the similar identify because the borrower or hirer, and even the similar identify and date of delivery. We would search for some convincing explanation why to hyperlink the individual to the debt.

Do assume about whether or not chances are you’ll owe this cash!

If your identify is James Parker they are going to have were given the mistaken individual; in case your identify is Edwina Chicken that’s much less most probably. If it kind of feels to be a debt to Orange and you have got been with Vodafone for the final 15 years, it almost definitely isn’t yours.

When now not to send a Prove It! letter

Before you send a Prove It letter, take a look at if any of the next cases applies, as there are higher choices for you in those scenarios.

The letter is addressed to anyone else

NB that is intended for when the letter obviously isn’t for you – now not if it has your maiden identify or the identify is relatively mis-spelled.

Even if the letter has your cope with, it’s not supposed for you. This web page explains what to do.

You know what the debt is and it’s outdated

If it’s greater than six years because you final made a cost to it, then you want to communicate to a specialist debt guide, now not answer to the creditor. The cut-off date for getting better the debt could have run out, so you want to to find out extra about Statute-Barred Debt and communicate to National Debtline;

You are positive the debt used to be settled with the unique creditor

This may repeatedly be for a application invoice for a earlier cope with, or a cellular invoice from a earlier supplier. There isn’t any level in arguing with a debt collector about whether or not you might have been billed for water after you left the valuables, they gained’t have the main points.

Instead you want to dispute the debt with the unique creditor and inform the debt collector that you’re doing this.

The letter has no main points about the debt in any respect

Sometimes debt tracing companies send out a very obscure letter, simply inviting you to get involved. See Reunite or Prime Location Services – contacting you about a debt for an instance.

In this example it’s good to come to a decision to simply forget about it. But if letters proceed to come, write and ask for main points of the alleged creditor.

You have won courtroom papers

Here you don’t have time to send a Prove It letter as there are tight timescales to input a defence. Don’t forget about courtroom papers, or you’re going to get a CCJ.

Read What to do when you get a Claim Form and call National Debtline once imaginable if you’re not sure;

If the letter says there may be already a CCJ

Perhaps the courtroom papers went to a earlier cope with otherwise you left out them? Here the Prove It letter beneath isn’t suitable.

You can see if there was a CCJ issued within the final six years via checking the Trust Online database. If there may be a CCJ for a debt you don’t recognise, communicate to National Debtline about making use of for the CCJ to be “set aside”.

Send a Prove It letter

But when you don’t assume the debt used to be ever yours, or you’re not sure and it isn’t most probably to be shut to six years outdated, then you definately must write a “Prove it!” letter to the debt collector.

There are two choices within the following template.

One says that you haven’t any wisdom that there’s a debt. This could be suitable when you as soon as had a telephone contract with X or a bank card from Y however you assume the accounts have been settled and also you don’t owe anything else.

The 2nd one is a more potent model if you’re positive that you’ve got by no means handled that company. Only use this if you’re completely satisfied about this.

Dear [Debt Collection Company],

I’m writing in reaction to a letter from you dated [dd/mm/yy], reference quantity [abc333333]. A duplicate is connected.

I don’t have any wisdom of this kind of debt being owed to [company name]
I don’t have any wisdom of ever having [a contract with/credit from] [company name].

If you don’t prevent assortment job while investigating my dispute, you’re breaking FCA laws and steerage. Also, ignoring claims that money owed had been settled or are disputed and proceeding to make unjustified calls for for cost is harassment.

Please supply proof of my legal responsibility for the alleged debt or send me written affirmation that this topic is now closed.

I glance ahead to listening to from you.

Your identify

I recommend that you simply don’t come with your phone quantity on this letter – coping with this kind of factor via mail or electronic mail is much less irritating.

If you send a letter, stay a replica of this letter and send it recorded supply.

The evidence, when and if it comes, must be sufficient of the next record to end up that you simply do (or did) owe the cash, or certainly point out that it’s anyone else who’s the Debtor:

  • Credit Application; Loan Agreement;
  • Statement of Account appearing main points and dates of debits and credit together with bills, passion and fees to the account and the present quantity remarkable;
  • Copy of Default realize, replica of formal call for; and
  • the place the debt has been bought, copies of letters from unique creditor pointing out that, plus letters from the present creditor pointing out that.

If they are able to produce a few of these, they are going to jog your reminiscence. Not all of the pieces at the record is also to be had or related.

After you might have despatched a Prove It letter

You don’t get a answer

If all of it is going quiet, then the debt collector could have been on a ‘fishing expedition’ and made up our minds now not to hassle you anymore – so when you don’t listen anything else, simply report the letters away someplace and don’t fear.

But if this mistaken debt is appearing for your credit score information, you need that taken care of.

Write to the debt collector once more after a few weeks, repeat that this debt isn’t yours and inform them to take away the access out of your credit score information with Experian, Equifax and TransUnion. In this example you must additionally tell the Credit Reference Agencies that the debt is in dispute.

More calls for arrive

If they don’t answer with any evidence after a few weeks however letters hard cost proceed to arrive, then write a 2nd letter with COMPLAINT in capital letters on the best.

Dear [Debt Collection Company],


On dd/mm/yy I ask you to supply evidence that I owed the alleged debt to xxxxxxx. I connect a replica of my letter.

The FCA laws are transparent that ” Where there may be a dispute as to the identification of the borrower or hirer or as to the volume of the debt, it’s for the company (and now not the buyer) to identify, because the case is also, that the buyer is the right kind individual in relation to the debt or that the volume is the right kind quantity owed below the settlement.”

I don’t owe this cash. You have failed to produce any proof that I do. If you don’t stop to touch me about this debt I will likely be complaining to the Ombudsman.

[Please also delete the incorrect entries from my credit records.]

Your identify

I’ve checked out one reader’s case the place the debt collector used to be sending very deceptive letters right 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 2nd letter, then I recommend you whinge to the related Ombudsman after 8 weeks. During this time, you should definitely stay a document of any longer calls for from the debt collector – via telephone, textual content, electronic mail or letter.

This would be the Financial Ombudsman (FOS) if the debt seems to be a mortgage, bank card, catalogue or an overdraft. How to send FOS your criticism is described here.

For different varieties of debt (power expenses? cell phones? and so forth) there are other Ombudsman. Sometimes one will likely be discussed at the letter you might have won. If now not, telephone National Debtline and ask who they believe you must whinge to.

Can you get reimbursement for this?

Possibly, however it’ll rely on how the creditor replied to your Prove It letter.

You normally gained’t get any reimbursement only for being despatched a letter about a debt that wasn’t owed if that is quickly resolved. It is noticed as a part of on a regular basis existence that every now and then errors are made.

But if the creditor ignores your letter and bombards you with letters or texts or emails, or dismisses your criticism after they haven’t equipped any evidence the debt used to be yours, or begins courtroom motion, then you’ll be ready to get some reimbursement.

This example from the Finacial Ombudsman seems to be at one of the issues FOS considers when deciding whether or not to award reimbursement.

More Debt Camel articles:

Payday Loan Refunds

How to ask for a payday mortgage refund

FAQs on statute barred debt

Misleading & aggressive debt collection

Misleading & competitive debt assortment

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