How to make debt collectors go away?

• If a debt collector contacts you, don’t panic.
• Always keep all letters and communicate in writing.
• Start making small, affordable payments, even if you can’t pay in full.
• Debt collectors must follow FCA rules and treat you with forbearance – often this means accepting token payments for a reasonable period if paying more would stop you covering essentials.
• You’re not required by law to send bank statements, wage slips or medical records to a debt collector – only share sensitive information if you’re genuinely comfortable and it’s in your interests.
• Review any payment plan carefully and don’t agree to more than you can afford.

Ready to protect your rights, avoid court action, and stay in control of your finances? Let’s break down exactly what to do next.

Step 1: Keep All Correspondence (Why Ignoring Letters Hurts)

You may think, " Should I ignore the debt collector's letters or just throw them away?" We do not recommend either option, as it can worsen your situation.

Keeping hold of any written communication you send and receive from debt collectors is essential. These letters are evidence of your communication with them and contain vital information. You can read more about this in our article Is it better to call or write to a debt collector?.

Step 2: Why Phone Calls Are Risky – Stick to Writing

How you communicate with debt collectors is crucial, and we must emphasise this.

Avoid using phone calls to communicate with debt collectors. If possible, do not respond to their calls at all. If you can find an email address, contact them this way. If not, then use good old-fashioned Royal Mail. You should be able to locate the postal addresses of most, if not all, debt collectors in any letters or statements they have sent you. If you still can't find the address, you will need to search for it on the debt collector’s website.

You may receive letters urging you to call the debt collector, including system-generated letters. If this occurs, look for the sender's address on the letter and resend your original letter to it. Repeat this process whenever you receive correspondence that does not address your letter. Don’t panic if you haven’t received a response to your letter; it can take time for your email or letter to reach the correct department.

In Step 4, we’ll explain what you must do once you receive a response.

Step 3: Token Payments Explained – Your FCA-Protected Right

In addition to keeping all communication in writing, making token payments is a crucial step in the process. Once you reach out to the debt collector, it’s important to begin your token payments right away.

We use the term ‘token payments’ because they should be tailored to what you can comfortably afford. Remember to keep making your monthly token payments, even if the debt collector hasn’t replied to your letters or emails. Staying consistent with your monthly payments is key!

Step 4: How to Respond When Debt Collectors Push Back

Here’s why, and it concerns how a debt collector must treat customers:

Section 7.3.5 (3) of the FCA Handbook states the following as an example of treating a customer with forbearance:

CONC 7.3.5(3): How the FCA Protects You During Financial Hardship

Debt collectors must follow the rules, and this guidance provides them with a way to ensure the rules are being followed when a person alerts them to financial difficulty and attempts to put a plan in place to address the situation.

Why Token Payments Block Legal Action (County Court Judgments)

When you make affordable token payments and keep communicating, it significantly reduces the risk of them pushing for court action, because doing so would be harder to justify under FCA rules – but it cannot guarantee they’ll never try.

Step 5: How to Complete Forms Without Sabotaging Your Budget

As we mentioned earlier, the income and expenditure form is the debt collector’s way of determining how much you can afford to pay them. However, before completing this form, we recommend using our budget planner to maintain control and calculate what you can afford to pay. You can print it out and send it to them instead of the debt collector's version.

If you do decide to complete the income and expenditure form, there are some essential pointers to keep in mind:

• Only complete the parts you are comfortable with. If you are unsure about the requested information, do not feel pressured to complete that section of the form.
• The debt collector will look for the figure remaining after subtracting your expenditures from your income. This is the amount they will expect you to pay.
• Debt collectors may suggest an amount, but they can’t force you to agree to a payment you can’t afford. You’re entitled to stick to a realistic figure based on your own budget, and your income and expenditure form simply shows them how much you can afford to pay each month.

Red Flags: What Debt Collectors Can’t Ask For (Bank Statements, Wage Slips)

• You are not required to send copies of wage slips, copies of bank statements, medical records or similar private sensitive information.
• Be aware that luxury expenditures, such as expensive gym memberships, alcohol, cigarettes, etc., may be questioned.
• Once you have completed the income and expenditure, keep a copy and send the original to the debt collector.

Step 6: Confirming Your Plan – What to Expect

You should eventually receive a letter or email confirming that your plan is in place. After some time, you may be contacted again for a review.

Step 7: Handling Reviews – How to Say “No” to Unaffordable Increases

The debt collector will contact you to review your plan at least once within 12 months; however, this may vary.

Some may review your plan after a month, while others may wait 3 months or 6 months. When you receive a letter requesting a review, do not feel pressured to increase your payment if you cannot afford to do so. If your circumstances haven’t improved, write back to the debt collector and inform them of this.

If you can afford to and want to increase your payments, you can do so at any time. However, only pay what you can afford, and never sacrifice your mental well-being to increase your debt payments.

The debt collector may contact you with discounts or offers to settle your debt, such as a reduced one-off payment. You can read more about this in our article Why do debt collectors settle for less?.

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.