Letter from GMS Debt Resolution? Read this before you pay or call back

If a letter or text from GMS Debt Resolution has just landed for a debt you may not even fully recognise, you are not alone. GMS is a UK debt-collection business chasing balances either purchased outright from the original lender or referred for collection on commission.

This guide covers what GMS can legally do under the FCA’s CONC rules, the two checks worth running before paying anything, and the realistic options if you cannot pay in full — including how an IVA can stop them and write the balance off.

Who GMS Debt Resolution are

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GMS Debt Resolution is a UK debt-collection firm 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
• The terms of the original credit agreement, including any post-default interest or fees

UK collectors are typically members of the Credit Services Association (CSA), the trade body for the industry, and bound by its Code of Practice.

The first practical question is whether GMS now owns the debt (a debt purchaser) or is chasing it on behalf of the original creditor (a contingent collector):

• 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; GMS chase it on a fee, and settlement discussions sometimes need creditor sign-off

You can ask GMS in writing which they are.

What GMS can and cannot legally do

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GMS 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 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 GMS 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.

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. 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 GMS Debt Resolution,

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.

GMS 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 old or bulk-purchased debts cannot be backed by the original signed agreement, in which case the 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 GMS stating that you consider the debt statute-barred 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 — GMS 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 after essentials
• 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 GMS 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 reached with GMS in writing, and never give bank details over the phone unless you are confident the call is legitimate.

Common pitfalls when dealing with GMS

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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 message without verifying the line through GMS’s official channels — 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 disclose more than is necessary on the phone — keep correspondence to writing wherever practical

Frequently asked questions

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Are GMS bailiffs? No. GMS are debt collectors. They can write, call and (sometimes) visit, but they cannot force entry or take goods without court-instructed enforcement officers acting on a CCJ.

Can GMS take me to court? Yes. If they believe the debt is genuine, within the limitation period, and unpaid, they can apply for a CCJ. Most uncontested cases result in default judgments simply because the defendant didn’t respond to the claim form.

Will an IVA include my GMS debt? Yes — the debt is unsecured and goes into an IVA on the same basis as any other unsecured debt. Once the IVA is approved GMS must stop contact and cannot take legal action on the included balance.

The debt isn’t mine — what should I do? 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?