Letter from Credit Acceptance? Read this before you pay

If a letter or text from Credit Acceptance has just arrived for a debt you may not even remember, you are not alone. Credit Acceptance is a UK debt-collection business regulated by the FCA. The most useful first step is to identify whether they own the debt or are chasing it on behalf of the original creditor — that changes who you negotiate with, and what’s on the table.

This guide covers who Credit Acceptance are, what they can legally do, the two checks worth running before paying anything, and the realistic options including how an IVA can legally stop them.

Who Credit Acceptance are

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Credit Acceptance 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. They are likely to be a member of the Credit Services Association, the trade body for the UK debt-collection industry.

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

• Debt purchaser — they bought the account from the original lender at a discount. Settlement decisions sit with them, including the ability to write off the unpaid balance.
• Contingent collector — the original creditor still owns the debt. Credit Acceptance chase it on a fee, and settlement sometimes needs to be ratified by the original creditor.

You can ask Credit Acceptance in writing whether they own the debt or are acting for the original creditor. They must tell you.

What Credit Acceptance can and cannot legally do

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Credit Acceptance are debt collectors, not bailiffs. They can:

• Write to you and call you on numbers held by the original creditor
• Apply for a County Court Judgment (CCJ) if they believe the debt is enforceable
• After a CCJ, apply for an attachment of earnings, charging order on a property, or High Court enforcement
• Sell the debt on to another debt purchaser if they own it

They cannot:

• Force entry to your home
• Take goods (only court-instructed enforcement officers can attempt that, and only after a CCJ)
• Threaten arrest — the debt is civil, not criminal
• Continue contacting you after a written request that they stop
• Add fees that were not part of the original credit agreement

If a Credit Acceptance representative or field agent ever turns up at your door, you have no obligation to speak to them, let them in, or sign anything.

Step 1 — confirm the debt is yours

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Before paying anything, the single most useful action is a CCA request under sections 77/78 of the Consumer Credit Act 1974. Send it in writing, enclose the £1 statutory fee, and keep proof of postage. Credit Acceptance have 12 working days plus a further 30 calendar days to respond. While they are unable to comply, the debt is legally unenforceable — they cannot lawfully use court action against you. Many older or bulk-purchased debts cannot be backed by the original signed agreement, in which case a CCA request often ends the matter.

Step 2 — check whether the 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 you last made a payment or acknowledged the debt in writing — provided Credit Acceptance has not started court proceedings within that window. Statute-barred debt cannot be enforced through the courts, although the debt does still legally exist.

In Scotland the period is five years under the Prescription and Limitation (Scotland) Act 1973, and once a debt is “prescribed” it ceases to exist legally rather than just being unenforceable. Do not pay anything, even a small “good faith” amount, before checking the dates — a single payment resets the limitation clock.

Step 3 — choose the route out

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If the debt is genuinely yours, recently incurred and within the limitation period, the question is whether you can pay it. The honest options:

• Pay in full with a discount where possible. Credit Acceptance will sometimes accept a settlement at less than the full balance, particularly for older accounts.
• Affordable repayment plan based on the Standard Financial Statement. They are obliged under CONC to consider what you can genuinely afford after essentials.
• IVA (Individual Voluntary Arrangement) if you owe £5,000 or more in total unsecured debt across two or more creditors — the IVA legally stops Credit Acceptance pursuing you for the included balance and writes off the unpaid balance at the end of the 5–6 year term.
• Debt Management Plan — informal monthly payment to a DMP provider distributed across all unsecured debts. No write-off; the chasing stops while the plan is maintained.
• Debt Relief Order if total debts are under £50,000 and your spare income is very low. A DRO writes off the debt entirely after 12 months.
• Bankruptcy if no realistic monthly payment is possible.

Always confirm any agreement reached with Credit Acceptance in writing, and never give bank details over the phone unless you are confident the call is legitimate.

Pitfalls when dealing with Credit Acceptance

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• Don’t ignore CCJ paperwork. A claim form starts a court timer; failing to file an acknowledgement of service by day 14 results in a default CCJ on your file for six years.
• 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 the line through Credit Acceptance’s official channels.
• Don’t agree to a payment plan you can’t afford in the hope of stopping the calls. Pressure tends to increase if you default.

Frequently asked questions

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Are Credit Acceptance bailiffs? No. They are debt collectors. Only court-instructed enforcement officers can take goods, and only after a CCJ.

Can Credit Acceptance take me to court? Yes, if the debt is genuine, within the limitation period and unpaid. Most cases result in default judgments because the defendant didn’t respond.

Will an IVA include my Credit Acceptance debt? Yes — the debt is unsecured and goes into an IVA on the same basis as any other unsecured debt.

How do I make Credit Acceptance stop calling? Send a written request that future contact is by post only. Under CONC, Credit Acceptance must comply.

Related guides

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