UK debt collection agencies and how to handle them

***UPDATE!
Sorry if I confused anybody, but the order I would generally go in is to issue the Credit agreement request FIRST, then go down the formal complaint route. Some may prefer to enclose the agreement and complaints-procedure requests in the same letter - everybody's different.

I should have made this a lot clearer than I did, and apologise for not spotting it sooner.

However, I need to re-embellish the point of making NO admission of debt at ANY point to these people - it may come back to haunt you, and you don't have to answer anything to them anyway.
***


In my previous messages, I have highlighted the dishonest and sometimes even illegal actions of private collection agencies. Apart from the corrupt UK government's active sponsorship of the industry in general -- and their forthcoming proposal to allocate state debts to Intrum Justitia (a company that shouldn't be trusted to mop toilet floors!) - I am attempting to highlight how uncontrolled, poorly-monitored an industry it really is. Many such companies don't hold a credit licence, and many are not registered with Companies House.


More to the point, this industry is directly responsible for aggravating stress, depression, desperation, family break-ups, and even suicide in some cases. And why should you or me actually subsidise all this?




But - don't be frightened -- they have no real powers of their own, are totally irrelevant, and can easily be subdued, and here's how. Not only that, but you can very easily turn the situation around on its head and actually cost THEM money without cost to you, apart from a few minutes of your time. If you've ever been a victim of identity fraud, unwarranted harassment, or just plain old mistaken identity, what follows is what you should do to counter it.


The companies concerned won't like it, but who cares what they think? What matters is you, not some company that tries to rob your hard-earned with threats and bullshit.


There are more important points that I did not have time to highlight in the speech.




1) You should always start your initial letter with 'I do not acknowledge any debt to your company'. Even if you do owe a debt, remember again that it's the original creditor that needs paying, not them. They cannot prevent you from doing so, and if you do choose this alternative, you don't have to explain yourself to them! Remember also that a collection agency may be quoting an amount surpassing that of what the original creditor have already told you previously. One more reason NOT to deal with an agency.

2) If you do make/receive a phone call from an agency, get the name of the person working for the company. But bear in mind that some of the less reputable collection agencies, such as McKenzie Hall, do use fake names.

3) More often than not, as the 40th day draws near, you will receive a letter from them stating 'we are no longer handling this account and are returning it to our client'. Translated, this means that the agency cannot obtain the information you've asked them for and are running scared in case you make a formal complaint. If this happens, make a formal complaint anyway -- they have after all, shook you up with their letter, and that warrants a complaint in itself. If nothing else, this is further assurance that you won't hear from that agency again.

4) You may receive two letters from two different agencies at or around the same time in pursuit of the same debt. It is unlawful for two agencies to be simultaneously persuing the same debt.

5) A debt you may be paying already may end up being passed to another agency, who will then send a letter threatening further action for non-payment. Remember that even if you do pay an agency as regular as clockwork, it in no way means the threat letters will stop. This usually happens when debt portfolios are sold on other agencies by the original creditor. This segues off neatly into the scenario highlighted in point 4.

6) Have draft letters already prepared for any scenario I have highlighted.

7) There are cases where people make an arrangement with a collection agency whereupon they 'negotiate' a percentage lump sum to 'get rid of' the debt. Many do this in order to remove defaults from their credit reports. Remember that once the default is there, it will stay there and even if the defaulted debt has since been paid, the report will still have the default listed (the status being changed to 'Settled'). If the debt is disputed, then a Notice of Correction needs to be forwarded to the relevant credit report body, whether it be Experian, Equifax or Callcredit.


I hope you feel my advice has helped you.

Finally, if you're stuck on how to draft a written reply to a letter that such an agency writes to you, then sign up on www.consumeractiongroup.com - they have an excellent template letters section, which you can then tailor to suit your individual case.

Category:

News & Politics

Tags:

• UK
• debt
• collection
• agencies
• and
• how
• to
• handle
• them
• Intrum
• Justitia

[Tzimnewman3]

Its 12 working days and then after no Court in the UK can enforce the debt.

[dcamaggots]

@Tzimnewman3

12 working days + 2 for postage.

But such requests should be sent recorded delivery, since DCAs have a habit of not acknowledging receiving such a request, and so it's best to have proof that they did get it.

And, of course, no signature should EVER be provided to a DCA - because some DCAs have been known to 'photoshop' signatures onto paperwork.

[Libline]

Thanks for the advice.

[dcamaggots]

@Libline

No problem.

[brawler031]

To all the people slating debt collectors or bailiffs, if it wasn't for these collectors the country would be in a worse state than it is. If you owe money to creditors then pay for it or come to some arrangement and stop hiding behind your doors and not answering like pussies. Why should the debtor have more rights than the creditor its ridiculous. If you let a friend borrow £1000 and he/her did one with your money im pretty sure you would be chasing him/her for it.

[dcamaggots]

@brawler031

"Why should the debtor have more rights than the creditor its ridiculous." - If the creditor hasn't done his job right, then why should allowances be made for that? If the creditor fumbles the ball in some way, then that's his fault.

"If you let a friend borrow £1000 and he/her did one with your money im pretty sure you would be chasing him/her for it." - Most people don't have £1000 to lend to anyone, and I wouldn't recommend lending or borrowing in this day and age.

[rod563]

Thankyou for this video, the tide is turning against these cocksuckers.

[spencerjohn2k]

This video has opened my eyes massively! Thanks!

[rodjames98]

@StSimonMartyr This is very true, and its refreshing to see so many people now waking up to these toothless parasites, and taking them on.

[rodjames98]

@brawler031 Yeah I can really imagine that the country would be in a worse state, especially since these lowlifes are third party interlopers who purchase old debts for a fraction of their original sum, and then load interest charges. My advice is eveyone pay up on time (even if you are skint) and then that will help the country with its phoney war efforts in afghanastan and iraq ! why didn't I think of that ?

[linkyandphil]

if you lent a friend £1000, im sure no one would chase it up in a manna that these wankers do, and im positive you wouldnt add an extra £40.00 to the original £1000 for being late. if you would, then you are not a friend to anyone, you are a greedy cunt who wants £40.00 more, which i must stress you never lost in the first place, so how can you add money to a debt which with the money you have added you never had nor lost? fucking idiots

[StSimonMartyr]

Collectors dont Own the debt. Let alone are owed any money

They are 3rd party bottom feeders, making their living extracting ill gotten proceeds from those duped into a system that is fraudulent.

They have no legal standing and are not a holder in due course. They can and should be challenged at all costs and be sued and /or countersued. They are part of the problem, not the solution, you moron.

If one doesnt know his rights, he has none.

[TheStudents2011]

We are trying to help consumers by finding out what the industry can do to improve its ethics and stop harming people who have fallen into difficulties. if you would kindly like to fill in our survey can you email us on students2011@hotmail.co.uk and we will email you the survey back. We would kindly appreciate your help and hopefully the results will be of assistance to you.

thank you

students2011 

[TheStudents2011]

our email is students2011@hotmail.co.uk



[TheStudents2011]

UK Debt Collection Industry

We are a group marketing students that are in our final year of university and we are carrying out research on the UK debt collection industry; the way in which it operates and how it affects consumers such as you. Before we carry out this research we must state that anything that you do put down is 100% anonymous. If you would rather email us the finished questionnaire, instead of posting your responses online then this would be fine.

[kingwaldo100]

Dont trust the FOS, they are opinion makers and are living on another world.

If you are in debt, go bankrupt. These debt companies are like vultures, if your partner is pregnant leave the country, because there is a very good chance she will not have the baby due to treats,excessive phone calls and harrassment. A corrupt system, banks lie, codes and acts are breached, FSA just watch and dont do anything. A failed system and banks are fully protected.

Ex IFA,Director 20 yrs service FSA