Debtor FAQs
Information for individuals and businesses who have been contacted by Paragon Credit Management.
Why have I been contacted by Paragon Credit Management?
You have been contacted because a business has instructed us to recover an outstanding commercial debt that they believe is owed by you or your organisation. We only act on behalf of legitimate creditors and only after receiving formal authority to do so.
Who are Paragon Credit Management?
Paragon Credit Management is a UK‑based commercial debt recovery agency. We specialise in recovering overdue business‑to‑business (B2B) debts on behalf of companies across the UK. We do not collect consumer‑regulated debts.
Do I have to speak to you?
You are not legally required to speak with us, but engaging with us early is the best way to resolve the matter quickly and avoid potential escalation. If you believe the debt is incorrect, disputed, or already paid, please let us know immediately so we can investigate.
Can you provide proof of the debt?
Yes. If you request it, we can provide documentation such as:
- invoices
- statements
- contracts or agreements
- correspondence relating to the debt
If you believe the debt is incorrect, please tell us as soon as possible.
I don’t recognise the debt – what should I do?
Contact us straight away. It may be:
- an administrative error
- a debt relating to a trading name
- a debt relating to a previous business entity
- a misunderstanding between you and the creditor
We will pause recovery while we investigate.
What happens if I ignore the correspondence?
Ignoring the matter does not make it go away. If we receive no response, the creditor may choose to escalate the case, which could include:
- adding late payment interest and compensation
- instructing solicitors
- issuing a County Court Claim
Engaging early is always the best option.
Can I set up a payment plan?
Yes, in many cases we can agree a reasonable payment arrangement. We will ask for basic financial information to ensure the plan is fair and affordable.
Will you contact my customers, suppliers, or employer?
No. We only communicate with the debtor and the creditor. We do not contact third parties unless legally required to do so (for example, during enforcement by the courts).
Will this affect my credit rating?
Commercial debts do not automatically appear on personal credit files. However, if the creditor issues a County Court Claim and a County Court Judgment (CCJ) is entered against you or your business, this may affect your creditworthiness.
Can you add fees, interest, or charges?
Under the Late Payment of Commercial Debts (Interest) Act 1998, creditors are legally entitled to:
- statutory interest
- fixed‑sum compensation
- reasonable recovery costs
These may be added to the balance depending on the circumstances of the debt.
I have already paid the creditor – what should I do?
Send us proof of payment (e.g., remittance advice, bank statement, receipt). We will verify it with the creditor and close the case if confirmed.
Can I dispute the debt?
Yes. If you believe the debt is incorrect, partially incorrect, or unfair, contact us with details of your dispute. We will place the case on hold while we review the information with the creditor.
Do you take legal action?
We are not a law firm, but we work closely with solicitors who can issue legal proceedings if the creditor instructs them to do so. Legal action is always a last resort and we aim to resolve matters amicably wherever possible.
How can I make a payment?
You can pay here, or by:
- bank transfer
- debit card
- payment plan (if agreed)
Full payment instructions will be provided in our correspondence.
How do I contact you?
If you need to speak with us, update us, or raise a dispute, you can contact us using the details provided in our correspondence or via our website’s contact page.