DEALING WITH DEBT RECOVERY

26 October 2018

• Financial conduct authority
• Claimant debt recovery
• Debt recovery liverpool
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• insolvency proceedings
• disputed debt
• corporate debtors
• individual debtors
• defendant debt recovery
• Debt recovery law liverpool
• credit collection agents
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• debt dispute claims liverpool
• debt recovery law blog

Debt-recovery or credit-collection agents are utilised by numerous organisations in order to redeem a variety of different payments from debtors, whether that be for trade debts, rent arrears, parking charges, or even utility bills.

Debt collection companies must obtain a consumer credit license from the Financial Conduct Authority, which is in place to regulate consumer credit activities, and monitor any unlawful tactics against consumers.

It is not unusual for debt to be disputed, although there must be substantial reasoning behind the dispute, and will ultimately cause conflict between the consumer and the debt collection agency.

There are a variety of issues that cause conflict, including the following situations:

• Mr A was contacted by a debt-collection agency after failing to pay back his short-term loan of £3,000 in the agreed time frame.

           Mr A explained that he was not in a position financially to pay the debt back immediately and offered to write to them regarding a repayment plan, which they refused to do.

  The debt-collection agency made insistent calls to Mr A, as well as to his work number, which was a shared office line. Mr A was informed by his employer that if the calls              continue he would be disciplined for disruption.

          Mr A decided to take legal action, as the debt-collection agency continued to harass him, whilst also adding interest on to his debt.

          After Mr A’s case was evaluated, it was decided that he should be compensated for the embarrassment and alarm caused by the debt-collection company, who were ordered to           pay £300 to Mr A, as well as agreeing a repayment plan for his current debt.

• Miss B was contacted by a credit-collection agency after being made redundant, resulting in arrears of around £3000 on her credit card.

          She contacted the debt-collectors informing them that she could not afford to settle the account for the requested amount of £1,800 and would therefore contact the business            with a solution.

          Not long after their initial contact, Miss B discovered she was due a pay-out of £1,200 from a payment protection insurance claim. Therefore, she decided to contact the debt-              collection agency to inquire about settling the debt with her pay-out, which they agreed was conceivable.

         However, Miss B was then contacted again by the business who informed her that £1200 would not actually cover the debt, which resulted in Miss B making a complaint.

         It was decided that although the business was prompt with their contact with Miss B, they did not accept their mistake and were therefore ordered to pay Miss B £150 in                    compensation.

Your organisation’s reputation is vital, and so it is important that you have the right credit control systems in place. This includes choosing the right third party to recover your debts. Let us take the strain away from dealing with recovering monies you are owed. We act in a professional and courteous manner.  Please contact us today on 0151 659 1070.