Ignore debt collectors

Before we delve into the specific methods, let's pause for a moment to gain a better understanding of how debt collection operates in the UK. The debt collection industry is shaped by strict FCA regulations, with 437 licensed agencies working to recover billions of pounds in outstanding debts while generating exorbitant profits by purchasing debts at heavily reduced costs. When you entered into your original credit agreement, you probably accepted terms that permit your creditor to assign or sell your debt.

Under the Consumer Credit Act 1974, a copy of your credit agreement is sufficient for court proceedings. Courts also regularly dismiss pseudolaw arguments that try to dispute valid debts. Given that debt portfolio sales are common, with collectors often buying debt packages for 3-20% of their face value, as discussed in our article How do debt collectors buy debt?, the legal framework fully supports these transactions.

The Scheme Explained

One method people often try is to ignore the debt but still communicate about it. They write to the creditor, stating that they refuse to deal with them or make any payments until they receive an original, signed agreement with "wet ink" signatures.

This approach places a strong emphasis on the agreement format. The technique incorrectly claims that a bank representative must sign the agreement, and it must be the original version, not a copy.

Supporters of this method also suggest asking the creditor to provide "proof" that they actually lent you the money.

What Actually Happens When You Try Method 1

The creditor views this as a standard complaint. They will follow the FCA complaints procedure and provide you with a copy of your signed agreement (not the original). If it's a bank, for example, they may also send you statements detailing all your transactions as proof of your expenditure. They will manage the "complaint" until they reach the final stage, resulting in them sending you a "Final Response Letter" with details on how to contact the Financial Ombudsman.

They will perceive this as their job done; it's now time for you to settle your debts.

If you continue refusing to make payments, not even token payments, you will risk legal action. If your case ends up in court, you should expect to lose. The creditor's solicitor will arrive with a copy of your signed agreement and statements showing every transaction you made.

Why This Method Fails in Court Every Time

Copies are legally acceptable: Under the Consumer Credit Act 1974, specifically Section 61A, a copy of the agreement is acceptable if it has been properly executed. The creditor's solicitor will inform the judge that original "wet ink" signatures are not required for the legal validity of the document.

The judge's perspective: To prove that money was loaned and the creditor has suffered a loss, the solicitor may ask the judge if they've ever had a credit card or loan. The likelihood is they'll say yes. Next, the solicitor will ask if they pay it. Again, they're likely to say yes. The solicitor has planted the seed: "You pay your credit card or loan off every month, so why does this person think it's okay not to?"

Transaction evidence: The solicitor will share all the transactions made using the credit card, highlighting how you gained from the funds. The situation becomes quite serious when the solicitor asks if you made those transactions. If you respond with "no," it could lead to perjury by lying under oath in court.

Now, do you see why this method made the list?

Understanding the Scheme

The second method involves asking debt collectors to produce a Deed of Assignment to "prove" ownership of the debt. Supporters of this method claim this document should detail exactly how much the debt collector paid for your specific debt, the purchase date, and other transaction details.

Why Debt Collectors Won't Provide This

Portfolio purchasing reality: When debt collectors buy bank debt, they rarely purchase individual debts. Instead, they buy portfolios containing thousands of debts bundled together. Your £1,000 credit card debt with Barclaycard, for example, will be one of thousands rolled together in a combined transaction potentially worth millions.

Commercial sensitivity: In the UK debt collection market, agencies usually pay about 10-20% of the face value for debt portfolios. A debt collector won't share that they paid only £200 for your £1,000 debt, because this information is considered commercially sensitive. Revealing such details could weaken their collection efforts. Their ultimate goal is to maximise profit, so they have no incentive to disclose details that could put this at risk.

Legal sufficiency: Courts accept a Notice of Assignment as sufficient proof of debt ownership. Under the Law of Property Act 1925, a properly executed Legal Assignment transfers the creditor's rights to collect the debt.

Court Outcomes for Method 2

If you follow this method, you will likely find yourself in court where judges accept a Notice of Assignment and, 99% of the time, deny requests to view the specific deed of assignment.

The legal system acknowledges that debt portfolio sales are legitimate business transactions protected by commercial confidentiality.

Is it a risk worth taking when you're almost guaranteed to lose?

The False Legal Theory

The third method involves telling debt collectors who have purchased your debt to "mind their own business," claiming they're acting as "third-party interlopers" and interfering in a private agreement. Some versions even suggest thanking them for "clearing the debt" and refusing payment.

Trust us when we say this: if this worked, we would be the first to detail it as an option on this site.

Legal Reality vs. Fantasy

Assignment transfers rights: When a creditor assigns a debt to a collector, they legally transfer their rights to collect. The assignment creates a direct legal relationship between you and the new creditor; there is no "interference" involved.

FCA regulation supports debt sales: The debt collection industry operates under strict FCA oversight, with clear guidelines supporting legitimate debt transfers. The regulatory framework would not exist if debt sales were somehow illegal interference.

Court outcomes are predictable: If you are not making any payments towards your debt and challenging the collector's legal right to collect, there is only one outcome. The debt collector will follow their internal procedures until the case ends up in court, and you will lose.

The Most Absurd Claim

The fourth method involves informing debt collectors that buying and selling debt is illegal. This technique suggests that collectors are committing fraud by contacting you, and that once the debt is sold, it magically "no longer exists."

Why This Method Is Completely Wrong

Debt sales are legal and regulated: The UK has a £1.9 billion debt collection industry operating under FCA oversight. If debt sales were illegal, this entire regulated industry would not exist.

Police won't investigate: This method is not even theoretically correct. The police will not accept debt collection as fraud because it is a legitimate, regulated business activity, regardless of how you or we may feel about it.

Creditor training: Creditors and debt collectors receive extensive training to deal with these pseudolaw arguments. They quickly spot these tactics and simply follow standard procedures.

Legal and Financial Risks

Using these four methods to tackle your debt is extremely risky and could put you in a far worse position. Here's what you're risking:

Court costs: When these methods inevitably fail in court, you will incur legal costs in addition to your original debt. With 437 debt collection agencies experienced in court proceedings, they are well-prepared for these arguments.

Worse enforcement action: Instead of accepting affordable token payments, creditors may pursue more aggressive collection methods once they recognise you're following debt elimination schemes.

Why Courts Consistently Reject These Arguments

UK courts are witnessing an increase in attempts to deploy "long-debunked strategies that inevitably fail". Judges recognise these arguments as variations of unsuccessful pseudolaw theories that waste court resources and hinder legitimate debt resolution.

The Consumer Credit Act 1974 provides clear guidelines for debt enforcement, and the Financial Conduct Authority (FCA) regulates debt collection practices. This established legal framework doesn't contain loopholes that can eliminate valid debts through procedural tricks.

Token Payment Plans: A Proven Alternative

Instead of risking court action through unsuccessful schemes, consider legitimate debt management strategies. Token payment plans, where you make small regular payments (often £1 per debt), are recognised by the FCA and can prevent legal action while you tackle financial difficulties.

Understanding FCA Guidelines

The Financial Conduct Authority sets clear guidelines governing the behaviour of creditors and debt collectors. Understanding these regulations can help you:

• Know your rights during debt collection
• Recognise when collectors exceed their authority
• Make informed decisions about payment arrangements

The Real Debt Guy is a qualified financial adviser and a UK debt expert. The information in this article is considered to be true and correct at the publication date.