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This can be worrying. You may fear legal action is likely. You may worry that people will visit your home.
You can still act to deal with your debts. Solutions, including Scottish trust deeds, can still get arranged. Taking action reduces the risks you face.
Contact us for personal advice.
Debt purchasers acquire credit accounts which have defaulted. After acquiring an account, the balance becomes owed to them.
Lenders dispose of debts in return for a lump sum. They benefit from reduced debt collection admin costs.
Debt purchasers may handle collection work in-house. They might pass collection work to a debt collection agency.
Debt collection agencies collect on debts that have defaulted. They use processes and systems designed for this activity.
Consumer credit lenders may lack capacity to chase defaulted accounts. They may lack expertise in recovering bad debts. Appointing a debt collection agent may increase their profit.
Debt collectors work hard to contact you. If you do not engage with them, repeated letters and calls are likely. They’re trying to reach an agreement with you to address your debt. Legal action is generally a last resort.
You can appoint a third party to deal with a debt collection agency. This could be a debt adviser or a protected trust deed firm. This could be a trusted friend or relative.
These firms have no extra authority. They have simply replaced the initial lender’s to collect the money.
They aren’t Sheriff Officers. They cannot remove property from you. This can only happen with consent from the court.
Personal debt collection is a regulated industry. The regulator expects them to treat you fairly. The regulator expects only affordable arrangements get agreed. They have a duty of care to you.
If you ignore them, things could get worse for you. Legal recovery action becomes more likely. The outcomes of legal action can be very negative.
Consumer debt collection and debt purchase is regulated. The FCA sets out rules for firms. The central basis of these rules is that you get treated fairly.
Firms should promptly and carefully deal with complaints.
You may be unhappy with the outcome to your complaint. You can escalate the complaint to the Financial Ombudsman Service.
You can enter a trust deed if your debts were transferred already. Trust deed providers liaise with debt purchasers and collection agents daily.
A Scottish trust deed may suit these firms. They can expect a realistic return within an agreed period. The trustees work reduces their admin costs. This is why they often vote in favour of trust deed proposals. They make trustees aware of their acceptance criteria.
It may be easier to deal with debt purchasers and collection agents. When they acquire a debt, it’s clear that financial difficulty exists. An agreed solution, resolving the problem, can work for all parties.
Thinking about starting a trust deed? Please contact us.
Bankruptcy is an option. Debt collectors and purchasers cannot stop you from applying for bankruptcy.
Debt arrangement schemes are another option. Debt collectors and purchasers can expect to recover most of the debt. They’re likely to accept fair DAS proposals.
Debt management plans can also get used. Debt collectors and purchasers can expect to recover most of the debt. They’re likely to accept fair DMP proposals.
It’s common for debts to change hands during a trust deed. Lenders may sell debts. Debt purchasers may sell accounts to other debt purchasers.
This shouldn’t concern you. Inform the new firm that you’re in a trust deed. Give them details for your trustee. Inform your trustee about the change. You don’t need to do anything else.
The acquirer cannot use legal recovery procedures. They’re restricted by the terms of your protected trust deed.
These firms may collect debt as well as buying it:
These firms may act for a lender or a debt purchaser:
We can help you to deal with debt collection agencies and debt purchasers.
We provide debt advisory services. We can connect you with excellent trust deed firms. The same firms deliver debt arrangement scheme and bankruptcy services.
Contact us to start getting your debts under control.