Letter from Credit Management Services? Read this first

If a letter or text from Credit Management Services (CMS) has just arrived for a debt you may not even remember, you are not alone. CMS 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.

This guide covers who CMS 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 and write off the balance.

Who Credit Management Services are

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Credit Management Services 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 the Credit Services Association Code of Practice.

Most contingent collectors of CMS’s profile work for a mix of:

• Banks and credit-card issuers for early-stage post-default recovery
• Telecoms and broadband providers for unpaid bills
• Utility companies for water, gas and electricity arrears
• Short-term and consumer lenders for defaulted personal loans and instalment credit

The first letter you receive should name the original creditor. If it doesn’t, write to ask — under CONC, CMS must tell you who you actually owe.

What CMS can and cannot legally do

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CMS are debt collectors, not bailiffs. They can:

• Write to you and call you on numbers held by the original creditor
• Recommend or progress 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
• Pass the file back to the creditor or sell it on if recovery isn’t viable

They cannot force entry, take goods at the door, threaten arrest, continue contacting you after a written request that they stop, or add fees that were not part of the original credit agreement.

If a CMS representative 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. CMS 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-handled debts cannot be backed by the original signed agreement; a successful CCA request often ends the matter on its own.

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 no court proceedings were started in that window. In Scotland the period is five years, and the debt 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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• Pay in full with a discount where possible — CMS will sometimes accept a settlement at less than the full balance.
• Affordable repayment plan based on the Standard Financial Statement — CMS must consider what you can genuinely afford under CONC.
• IVA to combine CMS debt with every other unsecured debt over a 5–6 year term, with the unpaid balance written off at completion. Eligibility starts at around £5,000 of total unsecured debt across two or more creditors.
• Debt Management Plan — informal monthly payment distributed across all unsecured debts. Stops the chasing while maintained; no write-off.
• Debt Relief Order if total debts are under £50,000 and your spare income is very low. A DRO writes off the debt after 12 months.
• Bankruptcy if no realistic monthly payment is possible.

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

Pitfalls when dealing with CMS

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• Don’t ignore CCJ paperwork. A claim form starts a 14-day clock — miss it and a default CCJ sits on your file for six years.
• Don’t make a token “goodwill” payment before checking the dates — it can reset the statute-barred clock.
• Don’t ring numbers from a text without verifying the line through CMS’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 CMS bailiffs? No. They are debt collectors. Only court-instructed enforcement officers can take goods, and only after a CCJ.

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

Can CMS 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.

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