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 executed agreement and the account information required by the Act; separately request any notice or evidence 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. While the creditor remains in non-compliance with the CCA request, the agreement is unenforceable in court. The debt remains, and enforcement can resume after compliance.

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 a copy of the executed 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 your total unsecured debt is at protocol IVA levels — 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?