Letter about an old CompuCredit account? Read this before you pay

If a letter just arrived chasing an old CompuCredit balance, the first thing to do is check the dates. CompuCredit Inc. was a US-listed sub-prime card and lending group whose UK card book has been closed for many years. Any UK CompuCredit balance still being pursued today is almost certainly being pursued by a debt purchaser — Lowell, Cabot, PRA Group or similar — and almost certainly old enough to be statute-barred under the Limitation Act 1980.

This guide explains who CompuCredit were, who is likely chasing the debt now, why the dates matter so much, and the realistic routes out — including how an IVA can write off the unpaid balance.

Who CompuCredit were

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CompuCredit Holdings Corporation (later renamed) was a US-listed company specialising in sub-prime credit cards and short-term lending — products aimed at customers with thin or impaired credit files. The group operated UK branded cards through subsidiaries before withdrawing from the market years ago, leaving behind a sizeable book of defaulted accounts.

Any UK CompuCredit account that was in default at the time the book was wound down has since travelled the standard sub-prime debt-sale path:

• Originated by CompuCredit’s UK subsidiary
• Defaulted by the customer
• Sold in bulk to a UK debt purchaser at a discount
• Pursued by that debt purchaser (or its appointed collector / solicitors firm) using the CompuCredit name plus the new owner’s name on the letter

The most common UK buyers of this kind of sub-prime card portfolio are Lowell Financial, Cabot Financial and PRA Group.

What this means for you

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Three practical implications follow from CompuCredit’s status as a closed-book brand:

1. The debt is old. Even cards opened in CompuCredit’s last full year of trading are well past the six-year limitation point if there has been no qualifying activity since.
2. The chaser is not CompuCredit. Whoever is writing today is almost certainly a debt purchaser. Their letter should disclose this, name the original creditor (CompuCredit), and quote the assignment.
3. The economics are firmly skewed to settlement. Bulk-purchased sub-prime accounts were bought for pennies on the pound. Steep discounts and structured settlements are normal — but only worth pursuing if the debt is actually enforceable.

Step 1 — check whether the CompuCredit debt is statute-barred

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Most consumer debts in England and Wales become statute-barred under the Limitation Act 1980 once six years have passed since:

• the last payment you made on the account, or
• the last written acknowledgement of the debt, or
• the start of any court proceedings

Given that CompuCredit’s UK card book closed many years ago, the typical CompuCredit balance has been sitting around long enough that statute-barred status is the norm rather than the exception — provided no payments or written acknowledgements have been made since.

In Scotland, under the Prescription and Limitation (Scotland) Act 1973, the period is five years and the debt is “prescribed” — it ceases to exist legally rather than simply being unenforceable.

Don’t pay anything, and don’t send any written admission, until you’ve worked out the dates. A single £5 “goodwill” payment can reset the clock and turn a statute-barred debt back into one that the courts can enforce.

Step 2 — confirm the debt and the assignment

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If the dates suggest the debt is still within the limitation period, the next step is 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, statement of account, and the notice of assignment that transferred the account from CompuCredit’s UK subsidiary to whoever now owns the debt.

Send it in writing, enclose the £1 statutory fee, and keep proof of postage. Until the request is satisfied, the debt is legally unenforceable in court — and many sub-prime portfolios from that era cannot be backed by the original signed agreement, in which case a CCA request often ends the matter.

What happens if you ignore an old CompuCredit letter

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Even where the debt is statute-barred, the safer move is to respond once in writing rather than ignore it indefinitely. Bulk-purchased portfolios are sometimes pursued through:

1. Repeat letters and calls
2. Occasional field-agent visits
3. Speculative county-court claims through the Northampton bulk centre

A claim form ignored by day 14 turns into a default CCJ, even if the underlying debt was statute-barred. Setting aside a default CCJ is technically possible but legally awkward and time-pressured. Always respond to claim forms — including with a defence of “this debt is statute-barred and therefore unenforceable under the Limitation Act 1980” if the dates support it.

Routes out if the CompuCredit debt is enforceable

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• Statute-barred defence in writing if the dates fit. Most CompuCredit balances qualify.
• CCA-request unenforceability if the original signed agreement cannot be produced.
• Settlement at a steep discount — purchasers of CompuCredit-style portfolios will often settle at 20–40% of the face balance, especially in writing.
• Debt Management Plan — informal monthly payment to a DMP provider distributed across all unsecured debts.
• IVA if you owe £5,000 or more in total unsecured debt — the IVA legally freezes any CompuCredit-related action and writes off the unpaid balance at the end of the 5–6 year term.
• Debt Relief Order if total debts are under £50,000 and your spare income is very low.
• Bankruptcy where no realistic monthly contribution is possible.

Pitfalls when dealing with old CompuCredit debt

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• Don’t pay even a small “goodwill” amount before checking the dates. It can reset the statute-barred clock.
• Don’t acknowledge the debt in writing until you have confirmed the limitation status.
• Don’t ignore a county-court claim form — a statute-barred defence has to be raised on the proper form within the deadline, otherwise a CCJ is entered by default.
• Don’t assume the chasing firm has the original agreement. Sub-prime portfolios from CompuCredit’s era are notorious for missing or incomplete paperwork.

Frequently asked questions

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Is CompuCredit still trading in the UK? No. The UK card book closed years ago. Any CompuCredit balance still being chased is almost always held by a debt purchaser.

Is my CompuCredit debt statute-barred? Probably. Most CompuCredit balances are now well past the six-year limitation period. Check the dates before paying anything.

Will an IVA include a CompuCredit debt? Yes — CompuCredit (or the debt purchaser that now holds the balance) is treated like any other unsecured creditor.

What if a CCJ has already been entered? The limitation clock stops once a CCJ is in place. Search the Register of Judgments at trustonline.org.uk for £6 to confirm whether one exists.

Related guides

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• Lowell Financial — common buyer of old CompuCredit debt
• BW Legal — Lowell’s litigation solicitors
• How long can I be chased for a debt?
• Can debt be written off?
• How do I apply for an IVA?