UK Debt Recovery
Debt Recovery Services

Debt Recovery Process

If you're a debtor - i.e. you owe a sum of money to a creditor or several - you should be aware that there are several legal measures that can be employed against you in the event of you not repaying your debts in time. Debt recovery process has been known to be unpleasant and even scary, but fortunately, it doesn't have to be. UK Debt Recovery's professionals have prepared this post in order to familiarise you with what a debt recovery process might entail and which measures employed by your creditor against you you should pay particular attention to.

First thing to always keep in mind - irrespective of the means that they go about it, all creditors want is to recover their money, or at least as much of it is as they possibly can. Letters, phone calls, even visits to your premises are not threats - they are steps your creditors are taking in the hope of fostering mutually beneficial co-operative relationship with you. Therefore, we suggest that you don't take the ever-popular "ignore them and they might go away" approach. Instead, give them a call, or write them a letter, acknowledging their attempt to contact you and perhaps even letting them know that you are getting advice on how to best deal with your debts.

In most cases, the approach that we've outlined above would work and your creditors would leave you in peace. However, there are some creditors that might not be satisfied with such a response. They might send you letters that might cause you to be concerned, and rightly so. However, please keep in mind that it is very unlikely that your situation is as bad as their letters make it sound to be. Please note that the following scenarios occur in cases of credit card debt or unsecured loans and the like.

In some cases, you might receive what is known as a "default notice". The most important effect of such a notice to be aware of is that the notice signifies the termination of your agreement with your creditor. A default is registered on your file for 5-6 years, which might seem like a long time, but in reality, it is a very good option for you. True, it might be difficult to get a loan during that period of time, but the sooner you receive a default notice from your creditor, the sooner it will disappear from your file.

You might also receive a notification that your debt has been passed onto a debt collection agency, such as UK Debt Recovery, or indeed a different department of the same creditor company. This is also part of a normal debt recovery process and nothing to worry about. In many cases, a debt recovery agency could be a better option for you because they are much easier to work with. UK Debt Recovery, for example, prides itself on our leniency and professionalism that we employ in each debt recovery case that we take. It goes without saying that we would be very happy to help you to write a debt recovery letter to your creditor if you feel that that's the best course of action, or indeed act as debt advisors we have referred to early that you can tell your creditors about. For more information, please contact us.

In other cases, your creditor might inform you that your debt has been passed onto solicitors. This is similar to a debt collection agency option - all solicitors do is act in their clients' best interests, which means that you'd be dealing with them from now on instead of the creditor directly.

If you receive a letter or a call about a representative of the creditor company visiting your home at some point, it is also not a cause of concern, unless your case is that of a doorstep loan. Most often, creditors use this tactic in order for you to give them a call. Even if they are planning a visit to your premises in the near future, they are not authorised to use any illegal means of extracting money, and they are not bailiffs.

If you receive a phone call or a voicemail telling you that they are calling you because you're late on a payment or haven't paid anything at all, you can technically stop them from calling you more than once a day, or even at all. For more information on how to do this, please contact us directly.

As we've tried to emphasise in this article, letters and phone calls from creditors might seem like an intimidation tactic, but in reality they are nothing more than a standard part of debt recovery process. There are rules and regulations in place which all organisations involved with debt recovery in one way or another are obliged to follow. The best thing to do is to get debt advice from UK Debt Recovery or any other agency as soon as possible and let your creditors know that you are working on putting a plan in place, which we are of course very happy to help you with. The first step towards solving a debt problem is to have someone who can help you plan how to do just that.

If you have any questions about the debt recovery process or the work that we do, don't hesitate to get in touch.