Letter from The Nostrum Group? Read this before you pay or reply

A letter from The Nostrum Group typically relates to a UK consumer-credit account — short-term or instalment loans associated with the wider Nostrum lending technology and brand stable. Even where the original loan was small, balances can build quickly through interest and charges, and the letter you have just received may well be from a current owner that bought the account from the original lender.

This guide covers who Nostrum are, what they are legally allowed to do under the FCA’s CONC rules, the affordability rules that may apply to the original loan, and the realistic options for resolving the debt — including how an IVA can legally stop contact and write the balance off.

Who Nostrum are

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The Nostrum Group is a UK consumer-credit business linked to short-term and instalment lending. Like every UK consumer-credit business they must operate within the Financial Conduct Authority’s regulatory perimeter and follow the Consumer Credit Sourcebook (CONC), the Consumer Credit Act 1974, and (for any post-default interest or fees) the original credit agreement.

In practice, Nostrum letters and accounts cover two broad situations:

• Active or recently defaulted loan — Nostrum or the lender within the group is still managing the account and is open to affordable repayment plans.
• Sold-on account — the loan has been transferred to a debt purchaser such as Lowell, Cabot or PRA, and any current letter is from the new owner. The CONC rules and CCA rights still apply, just to the new owner.

The first practical question is whether the letter is from Nostrum directly or from a debt purchaser. Check the letterhead carefully and ask in writing if it isn’t clear.

What Nostrum can and cannot legally do

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As a UK consumer-credit business and collector, Nostrum can:

• Write to you and call you on numbers held in the file
• Add interest as permitted by the original credit agreement (and only as permitted)
• Apply for a County Court Judgment if they believe the debt is enforceable
• After a CCJ, apply for an attachment of earnings, charging order or High Court enforcement
• Sell the debt on to another debt purchaser

They cannot force entry, take goods without enforcement officers, threaten arrest, or add fees beyond what the credit agreement allows. They also cannot continue contacting you after a written request that they stop.

The affordability angle on short-term loans

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A point worth knowing on Nostrum-style consumer credit. Under CONC 5, a regulated lender must carry out a proportionate creditworthiness and affordability assessment before lending. If the lending was clearly unaffordable at the point of issue — for example, where existing short-term debt or visible payday borrowing was already in the file — you may have grounds for an irresponsible-lending complaint.

Successful complaints typically result in:

• Interest and charges refunded
• Adverse markers removed from your credit file
• The remaining balance written down or written off

Complaints go first to the lender. If rejected or unanswered after eight weeks, you can refer the matter to the Financial Ombudsman Service. Worth running this in parallel with any CCA request.

Step 1 — request the original agreement

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Send a CCA request under sections 77/78 of the Consumer Credit Act 1974 to whoever currently owns the debt. Include the £1 statutory fee. They have 12 working days plus 30 calendar days to comply. Until they do, the debt is legally unenforceable in court.

Step 2 — check the dates

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Six years in England and Wales (five in Scotland) since the last payment or written acknowledgement, with no court action in that window, means the debt is statute-barred under the Limitation Act 1980. Don’t make a token “goodwill” payment before checking — a single payment can reset the clock.

Step 3 — choose a route

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• Pay in full with a written settlement discount where possible.
• Affordable repayment plan based on the Standard Financial Statement.
• Affordability complaint if the original loan was clearly unaffordable.
• IVA if total unsecured debt is £5,000 or more — the IVA legally stops Nostrum on the included balance and writes it off at the end of the 5-6 year term.
• Debt Relief Order for total debt under £50,000 with very low spare income.
• Bankruptcy where no realistic monthly contribution is possible.

Pitfalls when dealing with Nostrum

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• Don’t ignore CCJ paperwork. A default judgment is entered automatically when no acknowledgement of service is filed by day 14.
• Don’t take a one-shot payment plan over the phone. Always confirm in writing.
• Don’t pay before checking statute-barred dates on older balances.
• Don’t share bank details on a cold call without verifying the line.

Frequently asked questions

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Are Nostrum bailiffs? No. Nostrum operate as a consumer-credit business and collector. They can write, call and (occasionally) instruct field agents, but cannot force entry or take goods.

Can the loan be unaffordable? Possibly. Under CONC, the lender must carry out a proportionate affordability check before issuing the loan. If the lending was clearly unaffordable, an irresponsible-lending complaint can result in interest and charges refunded and adverse credit-file markers removed.

Will an IVA include this debt? Yes. The debt is unsecured and goes into an IVA like any other unsecured debt. Once approved, Nostrum or the current owner must stop contacting you on the included balance.

Has the loan been sold? Many short-term loans get sold to Lowell, Cabot or PRA. Check the most recent letter for the current owner’s name; if not clear, ask in writing.

Related guides

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