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Scottish Trust Deed Forum
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Topic starter
09/09/2011 1:07 pm
I've seen a few posts recently regarding debt collectors and in particular the doorstep collection method. I'd like to dispel a few myths regarding these outfits for people who may be feeling vulnerable through debt and perhaps waiting for a trust deed to go through.
1. A debt collection firm is NOT a bailiff (or a sheriff officer in Scotland). They have no more power than the common man, especially when it comes to entering your home. In the unlikely event someone from a collection firm knocks on the door you are under absolutely NO obligation to speak to them, let alone allow them into your house. You could of course stick the kettle on for him but it's entirely up to you!
2. These firms are particularly persistent in trying to get you to enter into an agreement and will do so by the use of umpteen daily telephone calls. Not only can this be annoying they can be extremely pushy on the phone. I would advise NEVER agreeing anything on the phone and insist that they put everything in writing to you. In fact, write to them and explain that this is the only method you will communicate by and any further calls will result in them being reported for harassment under the telecoms act.
3. You may find, once in a Trust Deed, letter will still arrive demanding this and that. Buy a nice big envelope, pop them in it and send them to your trustee. Simple!
09/09/2011 1:36 pm
That's really good advice tinsoldier.
Many debt collection agencies behave in a professional and responsible way, but we all know that some choose to apply pressure in a way that can only lead to worry and/or distress.
As you point out, that perception of "pressure" is out of all proportion given the lack of actual powers that they have.
Keeping debt collection agencies updated while making decisions about how to deal with debts is a good idea (for everyone involved), but I'd advise readers to do it only on their own terms.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
09/09/2011 1:50 pm
It's something that's always puzzled me about these guys....they sometimes purchase the debt for as little as 40p in the pound...how does that affect what you are ultimately due in a TD??
09/09/2011 2:05 pm
Hi tinsoldier.
They'll often buy debt for much much less than that.
That's between them and the seller though, the amount owed by the debtor is unchanged (as would be the claim in a trust deed).
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
09/09/2011 2:12 pm
Ah ok.
I suppose that's why sometimes they offer a settlement of 75% of the amount and the like.
09/09/2011 2:55 pm
For a debt purchaser any settlement sum that's more than the purchase price of the debt represents a quick profit.
Even if a debt hasn't been sold a lender may take a settlement figure. That may be because taking a reduced lump sum today will eliminate their extended debt collecting and/or administrative costs if they were to carry on receiving small installments each month (perhaps from a debt management plan for example).
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
