Letter from Clear Account? Read this before you reply

If a letter or text from Clear Account has just landed for a debt you may not even recognise, you are not alone. Clear Account is a UK debt-collection business — most likely a contingent collector chasing a balance the original lender has referred for recovery. This guide explains what Clear Account can and cannot legally do under the FCA’s CONC rules, the two checks worth running before paying anything, and the realistic options including how an IVA can legally stop them.

Who Clear Account are

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Clear Account is a UK debt-collection business regulated by the Financial Conduct Authority for consumer-credit collection activity. Like every UK collector, they must follow the FCA’s Consumer Credit Sourcebook (CONC), the Consumer Credit Act 1974 and — for any post-default interest or fees — the terms of the original credit agreement. UK collectors of consumer-credit debt are typically members of the Credit Services Association (CSA), the trade body for the industry.

The first practical question is whether Clear Account now owns the debt or is chasing it on behalf of the original creditor:

• Debt purchaser — they bought the account at a discount. Settlement decisions, including write-off of the unpaid balance, sit with them.
• Contingent collector — the original creditor still owns the debt. Clear Account chase it on a fee, and settlement discussions sometimes need to be ratified by the original creditor.

You can ask Clear Account in writing whether they own the debt or are acting for the original creditor. Their first letter should also name the underlying creditor — if it doesn’t, you are entitled to ask.

What Clear Account can and cannot legally do

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Clear Account are debt collectors, not bailiffs. They can write to you, call you on numbers you provided to the original creditor, apply for a County Court Judgment if the debt is enforceable, and — after a CCJ — apply for an attachment of earnings, charging order on a property, or High Court enforcement. They can also sell the debt on to another debt purchaser.

What they cannot do without a court order:

• Force entry to your home
• Take goods from your home or driveway
• Threaten arrest — the matter is civil, not criminal
• Continue contacting you after a written request that they stop, except to confirm changes to the account
• Add fees that were not part of the original credit agreement
• Disclose the debt to anyone else without your express consent

If a Clear Account field agent ever turns up at the door, you have no legal obligation to speak to them, let them in, or sign anything. Politely ask them to leave and follow up in writing.

Two checks worth running before you pay

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Step 1 — confirm the debt is yours and is enforceable. Send a CCA request under sections 77/78 of the Consumer Credit Act 1974. This is your statutory right to a copy of the original signed credit agreement. Send it in writing, enclose the £1 statutory fee, and keep proof of postage. Clear Account have 12 working days plus a further 30 calendar days to respond. While they cannot comply, the debt is legally unenforceable in court. Many old or bulk-purchased debts cannot be backed by the original signed agreement.

Step 2 — check whether the debt is statute-barred. Most consumer debts in England and Wales become statute-barred under the Limitation Act 1980 once six years have passed since you last made a payment or acknowledged the debt in writing, with no court action started in that window. In Scotland the period is five years and once “prescribed” the debt ceases to exist legally. Do not make a token goodwill payment before checking the dates — a single payment resets the limitation clock.

How Clear Account tend to operate

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Like most UK contingent collectors, Clear Account run on portfolio efficiency:

• Early letters set out the balance and offer a settlement window or repayment proposal
• Phone contact follows for accounts where they hold a number
• A field-agent visit may be scheduled — but agents have no enforcement powers at the door
• Files that don’t resolve are typically returned to the original creditor or referred to a panel solicitor for litigation

Their tone often hardens with each letter. The legal position does not change with the language used — what matters is whether the debt is yours, in date and properly documented.

What happens if you ignore Clear Account

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Ignoring Clear Account does not make the debt go away. Typical escalation:

1. More letters and calls, often from withheld numbers
2. Possible field-agent visit (no enforcement powers at the door)
3. The file passes back to the original creditor or to a debt purchaser
4. The new owner may issue a county-court claim through the Northampton bulk centre
5. Default judgment is entered if you don’t respond — sits on your credit file for six years and unlocks enforcement

If a claim form arrives, respond before the deadline printed on it — even a holding acknowledgement of service buys you 14 extra days and prevents a default CCJ.

Routes out

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• Pay in full with a written discount agreement — older accounts often settle at 30–60% of balance
• Affordable repayment plan with Clear Account based on the Standard Financial Statement
• Debt Management Plan — informal monthly payment distributed across all unsecured debts
• IVA if total unsecured debt is £5,000+ across two or more creditors — legally stops Clear Account, freezes interest, writes off the unpaid balance after 5–6 years
• Debt Relief Order if total debts are under £50,000 with very low spare income
• Bankruptcy where no realistic monthly contribution is possible

Always confirm any agreement in writing, and never give bank details over the phone unless you have independently verified the line.

Common pitfalls when dealing with Clear Account

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• Don’t ignore CCJ paperwork. Day 14 is the deadline for acknowledgement of service.
• Don’t make a token “goodwill” payment before checking dates — it can reset the statute-barred clock.
• Don’t ring numbers from a text message without verifying via official channels.
• Don’t agree to a payment plan you can’t afford in the hope of stopping the calls.
• Don’t ignore the underlying creditor. A contingent collector closing the file doesn’t always close the account at the original lender.

Frequently asked questions

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Are Clear Account bailiffs? No. They are debt collectors and cannot force entry or take goods.

Will an IVA include my Clear Account debt? Yes — it’s unsecured and goes in like any other unsecured debt. Once the IVA is approved, Clear Account must stop contact.

The debt isn’t mine — what now? Dispute it in writing and request CCA documentation. Until provided, the debt is unenforceable.

Related guides

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• How long can I be chased for a debt?
• Do debt collectors give up?
• Can debt be written off?
• How do I apply for an IVA?