Is This Debt Collection Letter a Scam? How to Check (UK)

Genuine letter or scam: the quick comparison

No single sign is proof, but a letter that ticks several boxes in the right-hand column deserves real suspicion.

Step 1: Do not act on the letter yet

Scammers rely on speed. A genuine debt will still be there tomorrow, so give yourself time. Do not call the number on the letter, do not click any link in a text or email, and do not make a payment "to stop it escalating".

Write down the company name, address, phone number, reference and amount, and keep the envelope. You may need them later.

Step 2: Check the company on the FCA register

Firms that collect consumer debts in the UK generally need to be authorised by the FCA.

1. Search the name on the FCA Financial Services Register.
2. Compare the address, phone number and website with the letter. Scammers often copy a real firm's name but change the contact details (this is called cloning).
3. Check the FCA's ScamSmart warning list for unauthorised firms and clones.
4. To contact the firm, use the details on the register, not the ones in the letter.

Step 3: Contact the original creditor yourself

Find the creditor's official number from a past statement, their app or their website, not from the letter. Ask them whether the account exists, whether it is in arrearsArrearsArrears are payments that were due but have not been made, such as missed rent, mortgage, council tax or loan instalments.Read more →, and whether they have passed it to a collector or sold it. If a debt was sold, the letter should say so and name the new owner.

You can also check your credit fileHow Credit Scores Work in the UKHow UK credit scores work: what the credit reference agencies record, what affects your score, why scores differ between agencies and what lenders actually see.Read more → for free with the main UK credit reference agenciesCredit reference agencyA credit reference agency is a company that collects information about people's borrowing and sells it to lenders. The main UK agencies are Experian, Equifax and TransUnion.Read more →. A genuine unpaid debt often appears there, though a new or disputed debt may not show up yet.

Step 4: Ask for proof before you pay

You are entitled to ask questions before you pay. Ask the company in writing for:

• The name of the original creditor and your account number
• A statement showing how the balance is made up
• A copy of the credit agreement. For most regulated credit agreements you can request this under the Consumer Credit Act by writing and sending a £1 fee, and the creditor normally has 12 working days to reply
• Proof that they own the debt or act for the owner, if it has been sold

Common scam tricks to know about

These are the patterns that come up again and again.

• Threats of arrest. In the UK you cannot be arrested for an ordinary unpaid consumer debt. Collectors and bailiffs have no power to do this.
• "Bailiffs will visit today." Bailiffs can only act after a court judgment or other legal process, and must give notice first.
• Texts with a payment link. Genuine firms rarely ask you to pay by tapping a link in a text. Go to the company's own website instead.
• A debt you have never heard of. Scammers guess. A real debt will have an original creditor you can name.
• Pressure to pay now, in an unusual way. Gift cards, crypto and personal bank accounts are red flags.
• Copied company names. A real firm's name with a different phone number or email address is a classic clone.

What if the letter is genuine but the debt is wrong?

A real collector can still be chasing the wrong person, an old debt, or an amount that has been inflated. In that case write to the company, say that you dispute the debt and ask for evidence. Check whether the debt is old enough to be statute-barredStatute-Barred Debt: The Six-Year Rule and UK Time LimitsIs your debt too old to be enforced? Learn the UK time limits, what restarts the clock, how it differs from your credit file and what to do before replying.Read more → (generally six years in England, Wales and Northern Ireland and five in Scotland), but get free advice before you reply, because paying or admitting the debt can restart the clock.

Our guide to a typical Scottish PO Box letter walks through the same process step by step: PO Box 8743 Bellshill: who sent this debt letter.

What to do if you have already paid or shared details

Act quickly. The sooner you tell your bank, the better the chance of stopping or recovering a payment.

1. Contact your bank straight away, using the number on your card or by dialling 159.
2. Change any passwords you have shared, and watch your accounts for unusual activity.
3. Report it to Action Fraud in England, Wales and Northern Ireland, or to Police Scotland on 101.
4. Forward suspicious texts to 7726, and suspicious emails to report@phishing.gov.uk.
5. Keep copies of everything the scammer sent.

If you are struggling with a real debt

If the debt turns out to be genuine and you cannot afford it, you do not have to deal with it alone. Free, independent help is available from MoneyHelper, StepChangeStepChange Explained: What It Does and How It WorksWhat the debt charity StepChange offers, how its free debt advice and debt management plans work, who it suits and what to expect when you contact them.Read more →, National DebtlineNational Debtline: How It Works, When to CallWhat National Debtline is, who runs it, what it can help with, how to get free advice by phone, webchat or online tools, and what to expect.Read more → and Citizens Advice. Our comparison of free debt advice charities explains the differences, and the urgent debt help guide covers what to do first when time is short. You can also see where you stand with our debt-to-income calculator.