What to Do If You're Chased for a Debt You Don't Recognise

Being contacted about a debt you do not recognise is a common experience in the UK. It can happen for a number of reasons: a debt may have been sold to a new company, an administrative error may have linked someone else's obligation to your name, or a debt may simply not exist. Whatever the reason, UK regulation provides a structured framework that governs what firms can and cannot do when a consumer disputes a debt.

The Financial Conduct Authority (FCA) regulates how firms pursue debts through its Consumer Credit sourcebook (CONC). The rules place specific obligations on firms when a debt is disputed, including the requirement to suspend recovery while the dispute is investigated and to provide evidence and justification where the consumer's identity or the amount owed is in question. Separately, the Consumer Credit Act 1974 gives consumers the right to request copies of credit agreements, and the Limitation Act 1980 imposes time limits on court enforcement of most debts.

This guide covers these rules, their key thresholds, and how they interact. It does not cover every type of debt or every jurisdiction within the UK — differences between England, Wales, Scotland, and Northern Ireland are noted where they arise.

If a firm is pursuing you for a debt you do not recognise, the core regulatory position is this: the firm must not ignore or disregard your claim that the debt is disputed, and it must not continue making demands without providing clear justification or evidence (CONC 7.5.3R). Where the dispute concerns your identity or the amount owed, the firm — not you — must provide evidence and justification to establish that you are the correct person or that the amount is right (CONC 7.5.3R; CONC 7.14.4R).

A firm must not pursue an individual whom it knows or believes might not be the borrower or hirer under a credit agreement (CONC 7.5.2R). When a debt is disputed on valid grounds, the firm must suspend recovery steps while the dispute is investigated and until the firm has provided clear justification and evidence (CONC 7.14.1R).

You also have the right, under Sections 77, 78, and 79 of the Consumer Credit Act 1974, to request a copy of the credit agreement for a statutory fee of £1. The creditor must respond within 12 working days, and while it fails to comply, the agreement is unenforceable.

The UK's framework for handling disputed debts operates across several layers of law and regulation, each serving a different function.

FCA Rules on Disputed Debts

The FCA's Consumer Credit sourcebook sets out binding rules for firms that collect or recover debts. A firm must not ignore or disregard a customer's claim that a debt is disputed, and must not continue making demands without providing clear justification and evidence (CONC 7.5.3R). A firm must not pursue an individual whom it knows or believes might not be the borrower or hirer under a credit agreement or consumer hire agreement (CONC 7.5.2R). When a customer disputes a debt on valid grounds — or on what may be valid grounds — the firm must suspend recovery steps while the dispute is investigated and until the firm has provided clear justification and evidence (CONC 7.14.1R). These rules apply to all FCA-regulated firms operating in the UK (England, Wales, Scotland, and Northern Ireland).

Valid grounds for disputing a debt include that the individual being pursued is not the true borrower or hirer, that the debt does not exist, or that the amount being pursued is incorrect. These examples come from FCA guidance (CONC 7.14.2G) and are not intended to be an exhaustive list.

Once a dispute is raised, the firm must investigate the matter and provide details of its findings to the customer (CONC 7.14.3R and CONC 7.14.5R). The rules require this to be done in a "timely manner," though no specific statutory deadline is defined. If the firm collecting the debt is not the original lender or owner of the debt, it must either pass the dispute information to the lender or owner, or notify the customer of the outcome of its investigation (CONC 7.14.6R).

The Evidential Obligation on Firms

A critical feature of the FCA rules is the allocation of the evidential obligation. Where there is a dispute about the identity of the borrower or hirer, or about the amount of the debt, it is for the firm — not the customer — to establish that the customer is the correct person or that the amount is correct (CONC 7.14.4R). The firm must provide evidence and justification to support its position; the consumer is not required to disprove the debt. This is a regulatory obligation rather than a formal legal burden of proof in the courtroom sense, but the practical effect is that the firm must evidence and justify its claim.

The Right to Request a Credit Agreement

Under Sections 77, 78, and 79 of the Consumer Credit Act 1974, a consumer may request a copy of their credit agreement from the creditor. The statutory fee for this request is £1. The creditor must provide a copy of the agreement within 12 working days. If the creditor fails to comply, the agreement becomes unenforceable for as long as the default continues. The copy provided can be a reconstituted version of the agreement; it does not need to include the original signature box, signature, or date.

Limitation Periods

In England, Wales, and Northern Ireland, the Limitation Act 1980 sets a limitation period of six years for most debt claims. This period runs from the date the cause of action accrues — often when a payment is missed, but the exact accrual point depends on the agreement and claim type. Once this period has passed without a written acknowledgment or part payment, the debt becomes "statute barred" — meaning it still exists and remains recoverable, but it cannot be enforced through the courts (CONC 7.15.2G; Limitation Act 1980).

In Scotland, the position is different. A debt subject to a five-year prescriptive period ceases to exist altogether if no relevant claim is made during that period and the debt is not acknowledged (CONC 7.15.3G, reflecting Scottish law).

A firm must not attempt to recover a statute-barred debt in England, Wales, or Northern Ireland if the lender or owner has not been in contact with the customer during the limitation period (CONC 7.15.4R). Where there has been regular contact, the firm may continue recovery attempts (CONC 7.15.5G), though the definition of "regular contact" is not specified in the rules. However, even where there has been contact, the firm must stop making demands if the customer states they will not pay because the debt is statute barred.

The following rules, thresholds, and timelines are drawn from primary legislation and FCA regulation.

• Dispute triggers and firm obligations. A firm must not ignore or disregard a customer's claim that a debt is disputed, and must not continue making demands without providing clear justification and evidence (CONC 7.5.3R). When a customer disputes a debt on valid grounds, the firm must suspend recovery steps while the dispute is investigated and until the firm has provided clear justification and evidence (CONC 7.14.1R). The firm must investigate and provide its findings to the customer in a timely manner (CONC 7.14.3R). If the dispute concerns the identity of the borrower or the amount owed, the firm must provide evidence and justification to support its position (CONC 7.14.4R).
• Consumer Credit Act request. A consumer may request a copy of their credit agreement under Sections 77, 78, or 79 of the Consumer Credit Act 1974 for a fee of £1. The creditor must respond within 12 working days. Non-compliance renders the agreement unenforceable while the default continues. No fee applies for a Section 77B statement request.
• Limitation periods for unsecured debts. In England, Wales, and Northern Ireland, the limitation period for most unsecured debt claims is six years from the date the cause of action accrued (Limitation Act 1980, Section 5). In Scotland, the prescriptive period is five years, and the debt ceases to exist once that period passes without relevant claim or acknowledgment.
• Restarting the limitation clock. A written acknowledgment of the debt (which must be in writing and signed) or a part payment restarts the limitation period.
• Mortgage shortfall debts. In England, Wales, and Northern Ireland, the limitation period for mortgage shortfall capital after repossession is 12 years, with 6 years applying to interest. The exact accrual point may vary depending on the agreement and the circumstances of the claim.
• HMRC debts. According to secondary sources including National Debtline and Payplan, debts owed to HMRC for income tax or VAT may have no time limit for recovery. National Insurance contributions, however, are reported as having a six-year limitation period as they are not classed as tax. This may vary depending on the specific debt type.

Several aspects of the disputed debt framework are frequently misunderstood.

"I have to prove it's not my debt."

This is incorrect in disputes about identity or amount. The FCA rules are clear: where the dispute concerns who the borrower is or what is owed, the firm must provide evidence and justification to establish that the customer is the correct person or that the amount is correct (CONC 7.14.4R). The consumer is not required to disprove the debt.

"A statute-barred debt disappears."

This depends on which part of the UK the debt arises in. In England, Wales, and Northern Ireland, a statute-barred debt still exists — it simply cannot be enforced through the courts. In Scotland, however, the debt ceases to exist entirely once the prescriptive period passes without relevant claim or acknowledgment.

"If I make a small payment, the problem goes away."

Making a part payment on a debt restarts the limitation period. Similarly, a written acknowledgment of the debt that is signed restarts the clock. Both actions have the effect of extending the period during which the debt can be enforced through the courts.

"The debt collector can keep chasing me regardless."

A firm must not ignore or disregard a customer's claim that a debt is disputed (CONC 7.5.3R). If it wishes to continue making demands, it must provide clear justification and evidence. A firm must also not pursue an individual it knows or believes might not be the borrower or hirer (CONC 7.5.2R).

"A reconstituted agreement isn't valid."

Under the Consumer Credit Act, the copy of a credit agreement provided in response to a Section 77, 78, or 79 request can be a reconstituted version. It does not need to include the original signature box, signature, or date.

Green Deal Agreements

The requirement for a firm to suspend recovery upon a valid dispute has an exception for Green Deal agreements, where the lender reasonably believes that disclosure provisions were not breached.

Breathing Space (England and Wales Only)

The Debt Respite Scheme, commonly known as Breathing Space, provides legal protections from creditor action for up to 60 days. It applies in England and Wales only and must be accessed through an FCA-regulated debt adviser. During a standard Breathing Space, interest and charges are frozen and enforcement is paused. Protections begin the day after registration on the electronic service, and creditors are notified via the same system. A midway review takes place between days 25 and 35 of the protection period.

To be eligible, an individual must be resident in England or Wales, must not be subject to a Debt Relief Order (DRO), Individual Voluntary Arrangement (IVA), or bankruptcy, and must not have had a Breathing Space in the previous 12 months. Mental Health Crisis Breathing Space has no such 12-month restriction and lasts for the duration of the individual's treatment plus 30 days.

New debts incurred during this period are generally not qualifying debts. The Breathing Space can be cancelled if the debtor disengages or fails the midway review.

Several specific rules apply to particular debt types within Breathing Space. Some debts are excluded from the scheme, and creditors can request a review where they believe a debt is not eligible. For secured debts such as mortgages and hire purchase agreements, only arrears qualify — ongoing payments are not covered, and new arrears arising during Breathing Space are not protected.

Joint debts can be included in Breathing Space even if only one person applies, and the protections apply to both parties. However, the other joint party may lose account access, their credit score may still be affected, and they remain responsible for payments. For guarantor loans, protections do not extend to the guarantor unless they apply separately — a guarantor can be pursued during the debtor's Breathing Space.

Council Tax Debts

A council in England or Wales cannot obtain a Liability Order if the council tax debt is over six years old. However, in most cases a council is likely to have obtained a Liability Order well before that point, and once a Liability Order is in place, there is no time limit on enforcement.

Statute Barred Debts and "Contact"

The FCA rule preventing recovery of statute-barred debts applies where the lender or owner has not been "in contact" with the customer during the limitation period (CONC 7.15.4R). Where there has been regular contact, recovery attempts may continue (CONC 7.15.5G). However, no statutory or regulatory definition of "regular contact" exists. Financial Ombudsman Service decisions suggest a case-by-case assessment based on correspondence records. Even where there has been contact, the firm must stop making demands if the customer states they will not pay because the debt is statute barred.

When a person receives contact about a debt they do not recognise, the regulatory framework described in this guide governs the obligations of the firm pursuing that debt. The firm cannot simply ignore a dispute. It must suspend recovery while the dispute is investigated, and — if the dispute concerns identity or amount — it must provide evidence and justification to support its position.

The Consumer Credit Act 1974 provides a mechanism for requesting evidence of the underlying agreement. If the creditor cannot produce a copy within 12 working days of a valid request, the agreement becomes unenforceable until it does. The statutory fee for this request is £1.

Time limits are an important feature of the system. For most unsecured debts in England, Wales, and Northern Ireland, a claim cannot be enforced through the courts once six years have passed since the last payment or written acknowledgment. In Scotland, the debt ceases to exist after five years. These periods can be restarted by a part payment or a signed written acknowledgment.

Breathing Space, available in England and Wales, can provide a defined period of protection from creditor action, subject to eligibility conditions and the involvement of an FCA-regulated debt advice adviser.

The system is designed so that firms bear the regulatory obligation to evidence and justify disputed debts, and consumers are not required to disprove them. However, the practical operation of these rules depends on individual circumstances, and the outcomes in any specific case are not guaranteed by the existence of the rules alone.

• Firm Obligations: When a consumer disputes a debt on valid grounds, FCA-regulated firms must suspend recovery while the dispute is investigated and until the firm has provided clear justification and evidence. Where the dispute concerns the identity of the borrower or the amount owed, the firm must provide evidence and justification to support its position. Firms must not ignore disputes or continue demands without providing clear justification and evidence.
• Credit Agreements: The Consumer Credit Act 1974 entitles consumers to request a copy of their credit agreement for a £1 fee, with a 12-working-day response deadline. Non-compliance makes the agreement unenforceable until the creditor complies.
• Limitation Periods: Most unsecured debts in England, Wales, and Northern Ireland have a six-year limitation period; in Scotland, the prescriptive period is five years and the debt ceases to exist once that period passes. Making a part payment or providing a signed written acknowledgment restarts these periods.
• Breathing Space: Available in England and Wales, provides up to 60 days of legal protection from creditor action, accessed through an FCA-regulated debt adviser.
• Evidential Burden: The regulatory framework requires firms to evidence and justify disputed debts; consumers are not required to disprove them. However, the outcome in any individual case depends on its specific circumstances.