Behind on Creation Consumer Finance? Read this before you pay

If a default notice or arrears letter from Creation Financial Services has just landed, the situation is different from a typical debt-collector letter. Creation is the original creditor — they lent the money. Specifically, they are the UK arm of BNP Paribas Personal Finance, one of Europe’s largest consumer-finance lenders, and they specialise in store cards, branded credit cards and retail point-of-sale finance offered through high-street partners.

This guide covers who Creation are, how the default-and-sale cycle works on a Creation account, and the realistic options if you cannot pay — including how an IVA can write off the balance whether Creation still own it or have sold it on.

Who Creation Financial Services are

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Creation Consumer Finance Limited (also trading as Creation Financial Services) is part of BNP Paribas Personal Finance, the consumer-credit arm of the BNP Paribas banking group. Creation is FCA-authorised for consumer-credit lending and operates within the FCA’s CONC framework plus the protections of the Consumer Credit Act 1974.

Their UK products typically include:

• Store cards issued through major furniture, electrical and home-improvement retailers
• Branded credit cards offered through retail partners and direct
• Retail point-of-sale instalment finance (“buy now pay later” structured as a regulated agreement)
• Direct Creation-branded credit cards

Because Creation is the original lender, your relationship is governed by the original signed credit agreement — not a debt-purchase assignment.

How the Creation default cycle works

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A Creation account that falls behind tends to follow a predictable sequence:

1. Late-payment letters and reminder calls from Creation’s in-house collections team
2. Section 87 default notice under the Consumer Credit Act, giving you at least 14 days to remedy the arrears
3. Termination of the agreement if the arrears aren’t cleared, with a default registered on your credit file for six years
4. In-house recovery for a period — sometimes through an FCA-authorised contingent collector
5. Sale of the debt to a debt purchaser like Lowell, Cabot or PRA Group

Once the debt is sold, the new owner takes over collection — you then deal with them, not Creation. The balance, however, is fundamentally the same Creation agreement.

What Creation can and cannot legally do

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Creation can:

• Issue default notices and terminate the agreement under sections 87–88 of the Consumer Credit Act
• Apply for a County Court Judgment (CCJ) if they believe the debt is enforceable
• After a CCJ, support attachment of earnings, charging orders or High Court enforcement
• Sell the debt to a debt purchaser

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

Two checks worth running

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1. CCA request under sections 77/78 of the Consumer Credit Act 1974 — written request for the original signed credit agreement and current statement of account. Useful especially after a sale, when the debt purchaser may not have the underlying paperwork.
2. Statute-barred check — six years in England and Wales (five in Scotland) since the last payment or acknowledgement, with no CCJ in that window, makes the debt unenforceable through the courts.

Routes out

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• Catch up the arrears if you can — Creation must consider an affordable plan under CONC.
• Settlement discount is sometimes available, especially after default and before sale.
• IVA to roll Creation, store-card, credit-card and other unsecured debts into a 5–6 year arrangement, with the unpaid balance written off at completion. Eligibility starts at around £5,000 of total unsecured debt.
• Debt Management Plan for situations where total debt is small enough to clear in 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.

An IVA has the advantage that it covers Creation regardless of whether they still own the debt or have sold it on — every unsecured creditor on the proposal date is bound.

Pitfalls when dealing with Creation

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• Don’t ignore the default notice. It is the legal precursor to termination and sale.
• Don’t make a token payment before checking dates on older accounts — it can reset the limitation clock.
• Don’t assume a letter from Lowell or Cabot about a Creation Consumer Finance account is wrong — once sold, the new owner is the right point of contact.
• Don’t agree to a payment plan you can’t afford. Pressure tends to increase if you default on a self-imposed plan.

Frequently asked questions

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Who owns Creation? Creation is part of BNP Paribas Personal Finance, the consumer-credit arm of BNP Paribas.

Will an IVA include my Creation debt? Yes — Creation balances are unsecured consumer credit and go into an IVA on the same basis as any other unsecured debt.

Has Creation sold my debt? Defaulted Creation accounts are commonly sold to debt purchasers. If a debt purchaser is now writing to you about a Creation account, the sale is the likely explanation.

Can Creation take me to court? Yes — they can issue a county-court claim. Most uncontested cases result in default judgments simply because the defendant doesn’t respond.

Related guides

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