Debt recovery notice of intention

mda99das

I am a self employed contractor, and my former work company is threatening me with debt recovery regarding an overpayment.  I intend to go to court if necessary as all jobs were provided and done and there is no overpayment and I can prove this. What scares me and this is where I need advice is that there is a paragraph saying my credit will be affected. 
Firstly I never took out any credit with my former workplace. Can they inform all the credit reference agencies or can their debt collector inform all the credit reference agencies  even if there hasn't been a letter of claim? Seems a bit daft that anyone can say xyz is untrustworthy without even being in front of a judge. The amount is £650 .
Thank you

MEM62

mda99das said:

Seems a bit daft that anyone can say xyz is untrustworthy without even being in front of a judge. 

They can't.  The damage to your credit standing that they are referring to could only result from a CCJ being awarded against you.