Letter from Fred Pay? Read this before you pay or call back

If a letter, text or email from Fred Pay has just landed for a debt you do not recognise, slow down. The right first move is not the number on the letter — it is a careful check of who you are actually dealing with, whether the debt is genuinely yours, and whether it is even legally enforceable.

This guide covers the rules every UK debt collector must follow under the FCA’s Consumer Credit Sourcebook, the two checks worth running before paying anything, and how an IVA can stop the chasing and write off the unpaid balance.

Who Fred Pay are

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Where a UK collector calls itself Fred Pay, the first practical step is to verify the firm. Any legitimate UK debt-collection business must:

• Hold FCA permissions for consumer-credit debt collection — searchable on the Financial Services Register
• Be registered as a UK company on Companies House
• Follow the FCA’s Consumer Credit Sourcebook (CONC), the Consumer Credit Act 1974 and (in practice) the Credit Services Association’s Code

If a firm using the Fred Pay name does not appear on the FCA register, do not pay. Phishing and impersonation using collector branding is a known problem.

The next practical question is whether Fred Pay owns the debt (a debt purchaser) or is chasing it on behalf of the original creditor (a contingent collector). The answer changes who you negotiate with:

• Debt purchaser — they bought the account from the original lender. Settlement decisions sit with them, including the ability to write off the unpaid balance
• Contingent collector — the original creditor still owns the debt; settlement sometimes needs the creditor’s sign-off

You can ask in writing which they are.

What a UK debt collector can and cannot legally do

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Debt collectors are 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 instruct High Court Enforcement Officers
• Sell the debt on to another debt purchaser

What they cannot do without a court order:

• Force entry to your home
• Take goods, including from your driveway
• Threaten arrest — the matter is civil, not criminal
• Continue contacting you after a written request that they stop
• Add fees that aren’t agreed in the original credit agreement
• Disclose the debt to anyone else without your consent

If a field agent ever turns up at your door, you have no legal obligation to speak to them, let them in, or sign anything. Politely ask them to leave and follow up in writing.

Step 1 — confirm the debt is yours

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Before paying anything, send 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. Send it in writing, enclose the £1 statutory fee, and keep proof of postage:

Dear Fred Pay,

Re: Account [reference], in the name of [your name]

Under sections 77/78 of the Consumer Credit Act 1974 I formally request a true copy of the original credit agreement under which this debt arose, together with the statement of account showing the assignment of debt and the current balance.

I enclose the £1 statutory fee. The £1 fee is in respect of the request only and is not an admission of debt or an offer to pay any amount.

The collector has 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 old or bulk-purchased debts cannot be backed by the original signed agreement, and a successful 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 no court action has been taken in that window. Statute-barred debt cannot be enforced through the courts, although technically it 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.

If the dates fit, write to the collector stating that you consider the debt statute-barred (or prescribed) and asking them to remove their contact. 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 what you can realistically afford:

• Pay in full with a discount where possible — collectors will sometimes accept a settlement at less than the full balance
• Affordable repayment plan based on the Standard Financial Statement — they are obliged under CONC to consider what you can genuinely afford
• Debt Management Plan — informal monthly payment to a DMP provider distributed across all unsecured debts
• IVA if you owe £5,000+ in total unsecured debt — legally stops the collector 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 with very low spare income — writes the debt off after 12 months
• Bankruptcy if no realistic monthly payment is possible

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

Common pitfalls

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• Don’t ignore CCJ paperwork. A claim form sent to your address starts a court timer; failing to file an acknowledgement of service by day 14 results in a default CCJ
• Don’t make a token “goodwill” payment before checking dates — it can reset the statute-barred clock
• Don’t ring numbers from a text without verifying the line through FCA-registered details — phishing using collector branding is common
• 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
• Don’t pay until you have confirmed the firm is FCA-registered and the debt is enforceable

Frequently asked questions

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Are Fred Pay bailiffs? No. Any UK debt collector is not a bailiff. They can write, call and (sometimes) visit, but cannot force entry or take goods without a court-instructed enforcement officer acting on a CCJ.

Can Fred Pay take me to court? Yes — any UK collector with the relevant rights can apply for a CCJ. Most uncontested cases result in default judgments because the defendant didn’t respond to the claim form.

Will an IVA include a Fred Pay debt? Yes — if the debt is unsecured, it goes into an IVA on the same basis as any other unsecured debt. Once approved the collector must stop contact and cannot take legal action on the included balance.

The debt isn’t mine — what now? Reply in writing that you do not acknowledge the debt and request proof of assignment, the original agreement and statement of account under sections 77/78 of the CCA. Identity-theft cases should also be reported to Action Fraud.

Related guides

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• Lowell Financial — UK’s largest 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?