Letter from Change Finance? Read this before you pay or call back

If a letter or text from Change Finance has just landed for an unpaid loan balance, the first step is not to panic-pay. Change Finance is a UK consumer-credit lender — their loan agreements sit under the Consumer Credit Act 1974, which gives you statutory rights including a CCA request and the protection of the limitation period.

This page covers what Change Finance can and cannot legally do, the two checks worth running before paying anything, and the realistic options — including how an IVA can legally freeze interest, stop contact and write off the unpaid balance.

Who Change Finance are

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Change Finance is treated here as a UK consumer-credit lender — typically the original creditor on an unsecured personal-loan or instalment-credit account. Lenders of this type are regulated by the Financial Conduct Authority for consumer-credit activity and must follow the FCA’s Consumer Credit Sourcebook (CONC) as well as the Consumer Credit Act 1974 for the underlying loan agreement.

Because Change Finance is the original creditor, the routes available are slightly different to those for a third-party collector:

• Settlement decisions sit directly with Change Finance — including any decision to discount, freeze interest or accept instalments.
• Affordability assessments at the point of lending are subject to FCA rules. A poorly underwritten loan can be challenged on irresponsible-lending grounds via the Financial Ombudsman Service.
• If the account defaults, Change Finance may either pursue collection in-house, instruct a collection agency, or sell the debt on to a debt purchaser like Lowell, Cabot or PRA.

What Change Finance can and cannot legally do

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Change Finance is a lender, not a bailiff. They can:

• Write to you and call you on numbers held on the loan account
• Charge interest and fees in line with the original signed credit agreement
• Issue a default notice once the account is in arrears
• Apply to a county court for a CCJ if the debt is unpaid and within the limitation period
• After a CCJ, apply for an attachment of earnings, charging order or High Court enforcement
• Sell the debt on to another debt purchaser

What they cannot do:

• Force entry to your home
• Take goods directly — only a court-instructed enforcement officer can attempt that
• Threaten arrest — the matter is civil, not criminal
• Add fees that were not in the original credit agreement
• Continue contacting you after a written request that they stop

Step 1 — request the credit agreement

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Before paying or agreeing anything, send a written CCA request under sections 77/78 of the Consumer Credit Act 1974. Enclose the £1 statutory fee. Change Finance have 12 working days to comply. Until they do, the loan is legally unenforceable in court. The agreement also lets you check the original interest rate, fees and any post-default terms — useful if the current balance looks higher than expected.

Step 2 — check the limitation period

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If you have not made a payment or written acknowledgement on the account for more than six years in England and Wales (five in Scotland), and there has been no CCJ in that window, the loan is statute-barred under the Limitation Act 1980 and cannot be enforced through the courts. Do not make a token payment to test the dates — it can reset the clock.

Step 3 — choose the route out

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If the loan is genuinely yours and within the limitation period, the question is what you can realistically afford:

• Catch-up plan with Change Finance — agreed in writing, based on the Standard Financial Statement.
• Settlement — Change Finance will sometimes accept a discount on the original balance for a one-off payment, especially on older defaults.
• Debt Management Plan — informal monthly payment distributed across all unsecured debts; the chasing stops, but no write-off and interest is not legally frozen.
• IVA if total unsecured debt is £5,000 or more across two or more creditors — interest stops, contact stops, and the unpaid balance is written off at the end of the 5–6 year term.
• Debt Relief Order for total debt under £50,000 with very low spare income.
• Bankruptcy for severe situations with no realistic monthly contribution.

Always confirm any agreement with Change Finance in writing, and never share full bank details over the phone without independently verifying the line.

Common pitfalls when dealing with Change Finance

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• Don’t ignore the default notice. Once a default is registered, the account stays on your credit file for six years — but ignoring the underlying debt can also lead to a CCJ.
• Don’t make a token “goodwill” payment before checking the dates if the loan is old.
• Don’t agree to a repayment plan you can’t afford. Change Finance will increase pressure if you default again.
• Don’t ring numbers from a text without checking the official Change Finance number on a separate channel.
• Don’t forget about irresponsible-lending complaints. If the loan was unaffordable from day one, the Financial Ombudsman can order interest and charges refunded.

Frequently asked questions

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Are Change Finance bailiffs? No. They are a consumer-credit lender. They can write, call and (after a CCJ) ask the court to enforce, but they cannot force entry or take goods directly.

Can Change Finance take me to court? Yes. If the account is in arrears and within the limitation period, they can apply for a CCJ through the county court.

Will an IVA include my Change Finance loan? Yes. The loan is unsecured consumer credit and goes into an IVA on the same basis as any other unsecured debt.

The balance looks wrong — what now? Request the original credit agreement and a full statement of account under sections 77/78 of the CCA. Dispute the balance in writing.

Related guides

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