Letter you send to a lender or debt collector if you dispute the debt

Updated April 2014

Replace and delete any unwanted text (mainly in blue) with your details and words, then make sure all the text is in black font, keep a copy and post recorded delivery. Check the I/We & me/us

Your address

Address of the loan company

Or

Debt Collection Agency

Date (insert today’s date)

By recorded delivery

Dear Sir/Madam

Reference or Account No: (Insert their reference or account number; this will be on the letter they have sent you)

I / We refer to your contact regarding the above account which you claim I / we owe.I / We am / are informing you that I/we do not recognise the debt and therefore it is DISPUTED.

Under the Office of Fair Trading Debt Collection Guidance (updated October2011), now adopted by the Financial Conduct Authority (FCA),it states that it is unfair to send demands for payment to an individual when it is uncertain that they are the debtor in question.

I / We would also remind you that under the updated guidelines it states that it is ‘unfair’ to pursue third parties for payment when they are not liable and that it is deceptive and unfair in not ceasing collection activity whilst investigating a reasonably queried or disputed debt.

Furthermore, if you ignore and/or disregardclaims that debts have been settled or are ‘disputed’ and continue to make unjustified demands for payment then this can amount to physical or psychological harassment, as detailed in the OFT Guidance.

I / We am / are also familiar with Section 40 of the Administration of Justice Act.

As I / we dispute this debt you refer to then I / we trust you will make no further contact unless you can satisfy me / us that this debt exists and that I / we am/are liable.

If you subsequently cannot prove I /we owe this debt and if you continue to act in this irresponsible and unprofessional way then I / we will have no other alternative than to report you to Trading Standards and the Financial Conduct Authority (FCA). I / we will also lodge a complaint with the Financial Ombudsman Service and your trade association, if appropriate, the Credit Services Association.

If I / we receive any communication from a / another debt collection agency then it will be evident that you have sold this debt on with the knowledge that it is disputed. Should this occur then I / we will report you to the government bodies and trade association detailed above.

I / We now await written confirmation that this matter is now closed, you are not to contact me / us by telephone, instead by letter only.

I / We look forward to your reply by return.

Yours faithfully,

(Insert your signature)

(Insert your name)

Notes

You now need to post this letter if you send it recorded delivery to guarantee postage then you can trace the letter at the following website:

Remember to change all the colours in this letter to black and delete anything that is not needed before printing and sending.Check the I/We & me/us & a /another