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uk Money & financial emergencies

What to do if…
your loan has been transferred to a new servicer and you are being told you are overdue

Produced and maintained by PanicStation.org Published: Last reviewed: Editorial policy UK guide

Short answer

Pause before paying new bank details. Verify the transfer through trusted contact details, then ask for a written statement showing exactly why they say the loan is overdue.

Do not do these things

  • Don’t pay using bank details from an unexpected text, email, letter, or phone call until you have verified the firm and the payment route independently.
  • Don’t send photos of bank cards, online banking screens, passwords, or one-time passcodes to “verify” yourself.
  • Don’t admit that you missed payments, or agree to a repayment plan, until you have seen the account breakdown and checked it against your own records.
  • Don’t cancel the only active payment instruction in panic if a real payment is due soon; first check where payments should now go.
  • Don’t ignore the overdue notice, because fees, collection contact, and credit-file reporting can happen while the mistake is unresolved.

What to do now

  1. Make a small proof pack.
    Save the last 3–6 months of bank transactions for this loan, recent loan statements, Direct Debit or standing order details, payment confirmations, reference numbers, and the transfer or arrears notice.

  2. Verify the transfer using a trusted route.
    Use the original lender’s official website, app, secure message centre, or a phone number from a previous genuine statement. Ask:

    • “Has my loan been transferred or assigned?”
    • “Who is now servicing it?”
    • “What date did the change take effect?”
    • “What payment details should I use now?”
    • “Will you confirm this in writing?”

  3. Check the new firm through the FCA route before using new payment details.
    Use the FCA Firm Checker or Financial Services Register to check the firm name and permissions. Be careful with lookalike names, copied firm reference numbers, and contact details supplied only in the unexpected message.

  4. Ask the new servicer for a written account breakdown.
    Send a short written request through a secure portal, verified email address, or post. Ask for:

    • a statement of account showing each due date, payment received, fee, charge, and balance
    • the date they say the account first became overdue
    • why any fee or arrears entry was added after the transfer
    • where they think your most recent payment went

  5. If you already paid, ask them to trace and allocate the payment.
    Give only the details needed: payment date, amount, payee name, account reference, and bank transaction reference. Ask them to confirm in writing that they will correct the account history if the payment was received or misallocated.

  6. Ask them to treat the account as disputed while they investigate.
    Write: “I dispute that this account is overdue. I have provided payment evidence and asked for the payment to be traced. Please treat the account as disputed while you investigate, and please do not add avoidable fees, collection activity, or adverse credit reporting caused by the transfer or allocation issue.” Keep a copy.

  7. Check your credit report for a new late marker.
    Check your free statutory credit report, ideally with all UK credit reference agencies: Experian, Equifax, TransUnion, and Crediva. If you see an incorrect late marker, dispute it with the credit reference agency you used and write to the lender or servicer that supplied the data.

  8. Make a formal complaint if it is not corrected quickly.
    Complain to the servicer, and to the original lender if needed. Include the transfer date, what you were told, your payment evidence, what appears wrong, and what you want corrected: payment allocation, fees, balance, arrears status, and credit reporting. For most financial complaints, the firm has up to 8 weeks to respond. You can usually go to the Financial Ombudsman Service after a final response, or if 8 weeks pass without one. After a final response, the usual referral deadline is 6 months.

What can wait

  • You do not need to decide today whether to refinance, consolidate, sell anything, or take out new credit.
  • You do not need to agree a long-term repayment plan until the transfer, balance, and alleged arrears have been checked.
  • You do not need to write a long letter now; a short written dispute with proof of payment and a request for a breakdown is enough for the first step.

Important reassurance

Loan transfers can create payment allocation errors, duplicate fees, missing history, or confusing notices. Clear payment proof, written requests, and verified contact routes can slow the situation down and give the firm a clean chance to correct the account.

Scope note

These are first steps only: verify the transfer, avoid a scam payment, protect your payment record, and create a paper trail. Later decisions, especially if the account is secured, in default, or heading toward court action, may need specialist debt or legal help.

Important note

This is general information, not financial, legal, debt, or professional advice. If the loan is secured on your home, you have received a default notice, court paperwork, or a formal pre-action letter, get independent advice promptly because those documents can have deadlines.

Additional Resources

Closely connected guides that may be useful during the same situation or its immediate aftermath.

About this guide

This guide was produced and is maintained by PanicStation.org using its published editorial process. Official and specialist sources are checked where relevant, and AI-assisted tools may be used for drafting, organisation, and consistency checks. The site operator remains responsible for publication, revision, and removal decisions.

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