Letter when you know nothing about about the debt - AKA "Prove it" letter

fermi

Updated 01/07/2023 by Sourcrates

When to send a Prove It letter about a debt

If you get a letter from a debt collector and think that you don't owe this money - you should send a prove it letter.

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.

So if the debt is to 02, but you have always been with Vodafone, it may not be your debt, the same analogy applies to other debts.

Dear [Debt Collection Company],

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 accounts are in dispute and continuing to make unjustified demands for payment is harassment.

Please provide evidence of my liability for the alleged debt or send me written confirmation that this matter is now closed.

I look forward to hearing from you.
Your name

fermi

IMPORTANT.

Also please note that if you are unsure that the debt being chased is valid or yours, then use the letter above.

Please do not be tempted to send a request (CCA request) under s77-79 of the Consumer Credit Act 1974 requesting copies of the credit agreement.

(1) If you want them to prove your liability for the debt then the above is all you need. Quote other Acts etc and you complicate what is a simple matter.

i.e. They have to prove you are liable for the debt. If they can't or won't, they are obliged to stop chasing you.

(2) Not all debts are covered by the CCA1974 or required to have credit agreements. e.g. mobile phone accounts, overdrafts, utilities etc etc......

Requesting a CCA under the act in those cases is a complete nonsense, and will most likely result in your request being ignored, refused or brushed off.

(3) Only the actual debtor is entitled to make a s77-79 request for a regulated debt. If you think you are not the debtor, then you do not have the right to make the request in the first place.


(4) A s77-79 request does not have to provide a signed copy of the agreement. So if you are looking to use it to prove whether you took out the debt or not or signed an agreement, then you may be wasting your time.

It is not a good tool for proof of debt. It was never intended for that purpose.

(5) And not least, s77-79 requests are often used when someone is disputing the enforceability of a debt, rather than disputing it outright. Because of that, rightly or wrongly, debt collectors tend to take an adversarial view when receiving such requests and often jump to the conclusion that you do actually owe the debt, but are simply trying to avoid payment. This then backs you into a corner that can then be hard to extract yourself from, when in truth you actually wanted to dispute that the debt was ever yours.

fermi

If the debt collector/creditor ignores your dispute.

If you've sent the prove-it letter (by recorded delivery preferably) and not had a sensible response then you need to take it further.

If they persist with their collection activity, something like this might wake them up:

Dear [Debt Collection Company],
COMPLAINT

On dd/mm/yy I asked 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 contacting me about this debt I shall be complaining to the Financial Ombudsman.

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

Your name

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.

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.

fermi

Updated by Sourcrates September 15th 2024.

Letter to send to creditors asking for all contact to be in writing only.


Dear lender (insert name of company)

(add address/date etc)

Account/reference number xxxxxxxxxx

Under the GDPR (General Data Protection Regulations, I am free to choose how you are to contact me.

With that in mind, in future I request that all contact between us must be in writing only.

Please update your systems to reflect this change with immediate effect.

Yours sincerely

A N OTHER.