Debt Management Companies

Debt Management Companies

Debt buyers like Lowell, Cabot, PRA and others bulk‑purchase debts. Buying a debt does not make it enforceable.

Challenge every file

• Is there a valid contract and full statement of account?
• Were affordability checks done at origination and sale?
• What is the lawful basis for processing now?
• Has vulnerability been recognised and adjustments made?

Key legal levers (credit debts)

• CCA 1974 s77–s79: request a copy of the executed agreement and account terms. While in default of this, the debt is unenforceable in court.
• Limitation Act 1980 s5: many simple‑contract debts in England & Wales become statute‑barred after 6 years without acknowledgment or payment.
• Pre‑Action Protocol (Debt Claims): creditors must give detailed information and consider alternatives before suing.
• FCA CONC & Consumer Duty: verify data before pursuit; treat vulnerable customers fairly.

Simple plan

1. SAR to the buyer and the original creditor.
2. CCA request (where applicable) + demand contract, default notice, assignment, and affordability evidence.
3. If records are missing or inconsistent, object under Article 21.
4. Escalate to the FCA if pressure continues.
5. Seek Article 82 compensation if rights are ignored and harm is caused.

Email opener to buyer

Subject: Account [ref] – SAR and legal basis
Text:
Provide all data you hold about me (Article 15 SAR). Confirm your lawful basis for processing and provide your balancing test for legitimate interests. Do not contact me by phone. Written communication only. Treat this as a vulnerability case and pause activity while you respond.