My debt has been passed to a third-party debt collection agency, what does this mean_

You may have received a letter from your lender to advise you that they ‘have transferred your debt to a debt collection agency’ and subsequently received a letter from said collection agency that states that ‘your details have been passed to us and we will now be dealing with your account’.

There is no need to be alarmed but now is the perfect time to act.

Sometimes a lender will appoint a debt collector to try to recover money for them. This isn’t necessarily a sale as the money is still owed to the original lender, but a third party is now handling it for them. Loan books are frequently transferred to third-party debt collectors. Their aim is to recover all outstanding debt.

What does this mean for you?

This simply means that all communication in respect to your outstanding debt will be with the debt collection agency. They will resume contact with you regarding repayment. However, this should be considered a fresh start and opportunity to resolve your overhanging debt, as some agencies are open to negotiation. However, these negotiations should not be undertaken lightly.

Bell & Company deal with such companies daily and we know from experience that representation to these agencies is essential. This is something we can help with.


There are many common misconceptions about third-party debt collection agencies. The term is associated with:

To name a few, resulting in the idea that chasing debt constitutes harassment.

However, all debt collectors must follow the debt collection guidelines laid out by the FCA (Financial Conduct Authority) and CSA (Credit Services Association) to be considered fit to operate as a debt collector.

These third parties may contact you according to FCA regulations and will do so. By facing the situation head on with the guidance and assistance of experts, who know this area, will make the process less daunting.

How we can help

We at Bell & Company deal with third-party debt collection agencies regularly. We know the companies, their protocols, procedures and how to best deal with them.

In our experience engagement is key.

Getting in contact with the debt collection agencies rather than hoping they will go away is always recommended. Knowing how to approach these agencies and explain the situation at hand will result in a more understanding relationship between creditor and debtor. When appointed, Bell & Company will handle all correspondence and will negotiate on your behalf to reach an affordable settlement.

You don’t have to deal with the collection agency alone, we are here to help!

If you have recently received a letter to tell you your loan is now being handled by a third-party collection agency contact us today, we offer a free initial consultation to explore all options.

Call us today on +44 (0) 2895 217 373.

Or if your Loan has been sold, click here

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