Notice of Assignment: Your Debt Has Been Sold, What to Do (UK)

What is a notice of assignment?

Lenders sometimes sell unpaid debts to other companies, called debt purchasers or debt buyers. The legal name for the transfer is an assignment. After it, the new owner is the one you owe, and you will normally receive a letter explaining who they are, which account it relates to and how to pay.

That letter is often called a notice of assignment, a notice of transfer or a welcome letter. Some purchasers also use a separate firm to collect for them, so you might hear from a different company than the one that bought the debt.

Debt purchaser or debt collector?

The difference matters because it decides who owns the debt.

Step 1: Check the notice is genuine

Look the company up on the FCA Financial Services Register and compare its details with the letter. Do not use phone numbers or links in the letter until you have done this. Our scam letter guide lists the warning signs.

Step 2: Check the details are right

A proper notice should tell you:

• Who the original creditor was and your original account number
• Who now owns the debt and who is collecting it
• The balance and how it is made up
• How to pay, and who to contact with questions

Step 3: Ask for proof of the transfer

If the details are unclear, write to the company and ask for evidence that the debt was transferred to it. You can also ask for a statement of account and, for regulated credit, a copy of the agreement. Our guide explains how: how to request your credit agreement. Keep copies of everything.

What does a sale change?

A sale changes who you pay. It does not change your rights.

• The new owner can only enforce what the original creditor could have enforced
• A sale does not restart the limitation clock, so an old debt does not become new (see is my debt statute-barred?)
• You can still dispute the debt, ask for proof, and complain about how it is collected
• Once you have been told about the assignment, pay the new owner, not the old one

If you cannot afford to pay

You do not have to pay for advice. Citizens Advice, 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 → and 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 → are all free and independent, and our guide to the free debt advice charities helps you choose between them. Tell the new owner about your situation and what you can afford, and ask them to confirm any plan in writing. In England and Wales you may be able to use Breathing Space.

Why do lenders sell debts?

Lenders sell debts they do not expect to collect themselves. The buyer pays a fraction of the balance and then tries to collect the full amount. This is a normal, regulated part of the credit market, but it often catches people by surprise, especially if the debt is old or the original account was closed years ago.

Buyers must be authorised by the FCA to collect consumer debts, and they must follow FCA rules on treating customers fairly. The sale does not remove the protections you had with the original lender.

Sample letter asking for proof

If you are unsure, you can send a short letter or email. Adapt it to your situation:

• "I have received a letter dated [date] saying that account [number] has been transferred to you."
• "Please send me the name of the original creditor, evidence that the debt was assigned to you, a statement showing how the balance is made up, and a copy of the credit agreement."
• "I do not accept that I owe this debt until I have received that evidence. Please do not contact me by phone, and write to me only at this address."

What happens to your personal data?

When a debt is sold, the seller shares the information the buyer needs to collect it, such as your name, address and account history. The buyer becomes responsible for using it lawfully under UK data protection law. You can ask the company for the data it holds about you using a subject access request, and you can complain to the Information Commissioner's Office if you think it has been misused.

When a sale should make you stop and check

Most notices are routine, but pause and ask questions if the debt is very old, you have never heard of the original account, the balance looks much higher than you remember, or the letter pressures you to pay immediately. Those are all reasons to ask for proof before you pay. If the debt may be more than six years old, read our guide on statute-barred debts before you reply, because the wrong reply can restart the clock.

Complaints and harassment

Collectors and debt purchasers must treat you fairly under FCA rules. If one misleads you, pressures you to pay, or contacts you too often, complain to the firm and then to the Financial Ombudsman Service. Our guide on collectors who will not stop calling explains your options.