Letter about a Cattles or Welcome Finance debt? Read this first

If a letter mentioning Cattles — or its consumer brands Welcome Finance or Shopacheck — has just landed, the most important thing to know is this: Cattles plc went into administration in 2010. There is no active Cattles lender today. Any letter you have received in the last few years has come from whichever debt purchaser now owns the loan, or a contingent collector acting on their behalf.

This guide covers what Cattles was, how to find out who owns the debt now, the two checks worth running before you pay anything, and the realistic options — including how an IVA can legally write the balance off.

Who Cattles were

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Cattles plc was one of the UK’s largest sub-prime lenders in the 2000s, headquartered in Batley, West Yorkshire. The group included Welcome Finance (personal loans and motor finance), Shopacheck (home-credit weekly-collected loans), and a number of smaller brands. The group ran into serious accounting problems in 2008, suspended lending in 2009, and was forced into a compromise scheme of arrangement before being wound down. Cattles plc entered administration in 2010.

In the years that followed, the loan books were sold off in tranches to debt purchasers. The most common new owners include:

• Lowell Financial
• Cabot Financial
• PRA Group
• Various smaller specialist purchasers

If you receive a “Cattles” branded letter today, it has either been sent by an administrator’s correspondence agent, or by a debt purchaser still using the legacy Cattles or Welcome Finance reference number on their letterhead.

What this means for you

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Cattles is no longer a creditor. The practical questions are:

1. Who currently owns the debt? Look at the most recent letter — there should be a current owner named. If not, ask for one in writing.
2. Is the debt within the limitation period? Many Cattles loans defaulted between 2008 and 2011 — they may now be statute-barred.
3. Is the debt enforceable at all? Without a copy of the original signed credit agreement, the debt cannot be enforced in court.

Two checks worth running first

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1. Section 77/78 CCA request. Send a written request under the Consumer Credit Act 1974 to the current owner of the debt for a copy of the original signed credit agreement, the statement of account, and proof of assignment from Cattles / Welcome Finance to the current owner. Enclose the £1 statutory fee. Many Cattles records are incomplete after the administration, so a successful CCA request often ends the matter — until they comply, the debt is unenforceable in court.
2. Statute-barred check. Six years in England and Wales (five in Scotland) since the last payment or written acknowledgement, with no CCJ in that window, means the debt is statute-barred and cannot be enforced through the courts. A large number of Cattles debts have crossed this threshold by now.

Don’t make a token payment to test the waters — even £1 can reset the limitation clock.

What rights the current owner has

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The current owner is bound by the same rules as any other UK debt purchaser. They are regulated by the Financial Conduct Authority, follow the FCA’s CONC rules, and are likely members of the Credit Services Association. They can:

• Write to you and call you on numbers held in the file
• Apply to a county court for a CCJ if they believe the debt is enforceable and within the limitation period
• After a CCJ, pursue an attachment of earnings or charging order

They cannot force entry, take goods, threaten arrest, or add fees that were not in the original Cattles credit agreement.

Routes out

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• Statute-barred letter if the dates support it — write to the current owner asking them to confirm the debt is statute-barred and to remove their contact.
• Discounted settlement — a debt purchaser bought the loan for a fraction of face value, so settlement discounts of 30–60% are common. Always make offers in writing.
• IVA to combine the Cattles balance with every other unsecured debt over a 5–6 year term, with the unpaid balance written off at completion. Eligibility starts at around £5,000 of total unsecured debt.
• Debt Management Plan for smaller balances that can be cleared within a reasonable period.
• Debt Relief Order for total debt under £50,000 with very low spare income.
• Bankruptcy for severe situations with no realistic monthly contribution.

Pitfalls when dealing with old Cattles debts

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• Don’t make a “goodwill” payment before checking dates. A single £1 can reset a statute-barred debt.
• Don’t pay Cattles directly. Cattles plc no longer exists. Any genuine collector will be the current owner or their agent.
• Don’t accept the balance at face value. Statements of account from old Cattles loans can include compound interest and charges that were never properly enforceable. Ask for a full breakdown.
• Don’t ignore CCJ paperwork even if the original loan is old — once a court starts, a default judgment is much harder to overturn.
• Don’t confuse Cattles with new sub-prime lenders. Cattles is gone — new short-term lenders use different names entirely.

Frequently asked questions

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Is Cattles still trading? No. Cattles plc went into administration in 2010 and was wound up.

Who owns my old Welcome Finance loan? Most Welcome Finance and Cattles loans were sold to Lowell, Cabot or PRA. Check the most recent letter for the current owner’s name.

Will an IVA include an old Cattles debt? Yes. If the debt is genuinely yours and unsecured, it goes into an IVA like any other unsecured debt.

Are Cattles debts often statute-barred? Many are. If there has been no payment, no written acknowledgement and no CCJ for six years (five in Scotland), the debt is statute-barred.

Related guides

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• Lowell Financial — major debt purchaser
• Cabot Financial — major debt purchaser
• PRA Group — major debt purchaser
• How long can I be chased for a debt?
• Can debt be written off?
• How do I apply for an IVA?