If you fall behind on debt repayments, your accounts may get moved. Lenders may outsource collection of the money to debt collection agencies. Your debt may be sold to a third party known as a debt purchaser.

 

This may be a worrying change. You may have concerns about legal action or bailiff visits.

 

In reality, you can act to deal with your debts. Solutions, including a debt management plan, can get put in place. You can reduce or eliminate legal risks this way.

 

Get in touch you’d like advice about your debts.

 

What Is A Debt Collection Agency?

 

Debt collection agencies collect on accounts which have fallen into arrears. They're specialists in this activity. They get referred to as a “DCA”.

 

A lender may have limited resources to collect on accounts in arrears. They may lack the specialist skills to collect tricky debts. Outsourcing debt collection to a DCA may help them to recover the money.

 

A DCA will try to be in contact with you. If you do not speak with them, you may receive frequent calls and letters. Their aim is to agree a sensible way to repay a debt with you. They’d prefer to avoid legal action if possible.

 

Debt collection agencies will deal with your debt adviser if you have one. Debt management plan companies deal with DCA firms on a daily basis.

 

What Is A Debt Purchaser?

 

A debt purchaser buys debts which have fallen into arrears. After buying a debt, any amount owed becomes payable to them.

 

Lenders sell debts because they want to recover a lump sum. They avoid the ongoing admin costs of collecting the money.

 

A debt purchaser may handle debt collection themselves. They might outsource the collection process to a debt collection agency.

 

What Powers Do These Companies Have?

 

Debt purchasers and debt collection agencies have no special powers. They have simply taken the place of the lender to recover funds owed.

 

They aren't bailiffs. They cannot recover goods from you to repay your debt.

 

Collecting consumer credit debt is a regulated activity. They should treat you fairly. They should ensure any agreed repayment is affordable for you.

 

If you ignore contact from them, you risk an escalation. They may switch tactics and use legal collection procedures. County Court Judgments (a CCJ) could be a consequence if this happens. A CCJ could escalate further to a very damaging situation for you.

 

Regulation & Complaints

 

Any firm collecting consumer credit debt is regulated by the FCA. They should have systems and processes in place to ensure you get treated fairly.

 

They must have robust complaints procedures. You can complain to them if you believe you've been treated unfairly.

 

You can take your complaint to the Financial Ombudsman Service. They assist you if you’re unhappy with the firm’s response to a complaint.

 

Debt Management Plans

 

You can start a debt management plan if you have debts with a DCA. We deal with debt collection agencies and debt purchasers daily.

 

These firms want an “arrangement to pay” in place. They want the amount you pay to be affordable. A debt management company can make these arrangements for you.

 

It can be easier to deal with these firms than the original lender. It’s understood there’s a financial problem when they take over a debt. Everyone wants to find a fair solution.

 

Thinking about starting a debt management plan? Please contact us.

 

Other Debt Solutions

 

You can enter an IVA if your debts have changed hands. Debt purchasers vote on IVA proposals as original lenders do.

 

Bankruptcy and Debt Relief Orders remain available. Purchasers and collectors cannot prevent you from becoming bankrupt. They cannot prevent you from starting a DRO.

 

For Scottish residents, the same is true. Purchasers can vote on the acceptance of a Trust Deed or Debt Arrangement Scheme. They cannot prevent you from becoming bankrupt.

 

Debt Transfers During Your Debt Solution

 

It’s common for debts to transfer after debt solutions begin. Lenders may outsource debt collection of their account or sell the debt.

 

This may come as a surprise if you’re in a debt management plan. There’s generally no need to worry. Inform your debt management provider about the transfer. They’ll then deal with the new company.

 

Debts may also get sold during an insolvency process like an IVA. This should not be a cause for concern. Simply let your IVA supervisor know if you hear a debt has transferred.

 

Some Well Known Debt Collection Agencies

 

These firms may act on behalf of a lender or a debt purchaser:

 

• Allied International Credit (AIC)

• Debt Managers

• Fredrickson International

• Moorcroft Debt Recovery

• NCO Europe

• Robinson Way

• Wescot Credit Services

 

Some Well Known Debt Purchasers

 

Some of these firms collect debts as well as purchasing them:

 

• Arrow Global

• Cabot Financial

• Capquest

• Idem Servicing

• Intrum

• Link Financial

• Lowell Financial

• PRA Group

 

Get Debt Advice

 

Bright Oak deals with debt collection agencies and debt purchasers daily.

 

We provide debt advice and debt management plan services. We can connect you with high-quality providers of other debt solutions.

 

Contact us to start getting your debts under control.

 

 

Author: Andrew Graveson – Qualified Debt Adviser & Bright Oak’s Founder

 

Last Updated: 18/07/2019

Get Advice

Please fill in the form below. We will call you back as soon as possible.

Submitting Form...

The server encountered an error.

Form received.

Social Media

More Reading

Free-To-Client Debt Advice

The Money Advice Service provides details of organisations that offer free debt advice and services.

Debt Management Protocol logo link Brightoak Twitter

(c) Bright Oak Ltd. Company Number: 06774006. Data Protection Registration: Z1657982.

Telephone calls may be monitored or recorded. Authorised and regulated by the Financial Conduct Authority.

Bright Oak, Cardiff House, Priority Business Park, Barry, CF63 2AW. Tel: 02920 492661.

If you fall behind on debt repayments, your accounts may get moved. Lenders may outsource collection of the money to debt collection agencies. Your debt may be sold to a third party known as a debt purchaser.

 

This may be a worrying change. You may have concerns about legal action or bailiff visits.

 

In reality, you can act to deal with your debts. Solutions, including a debt management plan, can get put in place. You can reduce or eliminate legal risks this way.

 

Get in touch you’d like advice about your debts.

 

What Is A Debt Collection Agency?

 

Debt collection agencies collect on accounts which have fallen into arrears. They're specialists in this activity. They get referred to as a “DCA”.

 

A lender may have limited resources to collect on accounts in arrears. They may lack the specialist skills to collect tricky debts. Outsourcing debt collection to a DCA may help them to recover the money.

 

A DCA will try to be in contact with you. If you do not speak with them, you may receive frequent calls and letters. Their aim is to agree a sensible way to repay a debt with you. They’d prefer to avoid legal action if possible.

 

Debt collection agencies will deal with your debt adviser if you have one. Debt management plan companies deal with DCA firms on a daily basis.

 

What Is A Debt Purchaser?

 

A debt purchaser buys debts which have fallen into arrears. After buying a debt, any amount owed becomes payable to them.

 

Lenders sell debts because they want to recover a lump sum. They avoid the ongoing admin costs of collecting the money.

 

A debt purchaser may handle debt collection themselves. They might outsource the collection process to a debt collection agency.

 

What Powers Do These Companies Have?

 

Debt purchasers and debt collection agencies have no special powers. They have simply taken the place of the lender to recover funds owed.

 

They aren't bailiffs. They cannot recover goods from you to repay your debt.

 

Collecting consumer credit debt is a regulated activity. They should treat you fairly. They should ensure any agreed repayment is affordable for you.

 

If you ignore contact from them, you risk an escalation. They may switch tactics and use legal collection procedures. County Court Judgments (a CCJ) could be a consequence if this happens. A CCJ could escalate further to a very damaging situation for you.

 

Regulation & Complaints

 

Any firm collecting consumer credit debt is regulated by the FCA. They should have systems and processes in place to ensure you get treated fairly.

 

They must have robust complaints procedures. You can complain to them if you believe you've been treated unfairly.

 

You can take your complaint to the Financial Ombudsman Service. They assist you if you’re unhappy with the firm’s response to a complaint.

 

Debt Management Plans

 

You can start a debt management plan if you have debts with a DCA. We deal with debt collection agencies and debt purchasers daily.

 

These firms want an “arrangement to pay” in place. They want the amount you pay to be affordable. A debt management company can make these arrangements for you.

 

It can be easier to deal with these firms than the original lender. It’s understood there’s a financial problem when they take over a debt. Everyone wants to find a fair solution.

 

Thinking about starting a debt management plan? Please contact us.

 

Other Debt Solutions

 

You can enter an IVA if your debts have changed hands. Debt purchasers vote on IVA proposals as original lenders do.

 

Bankruptcy and Debt Relief Orders remain available. Purchasers and collectors cannot prevent you from becoming bankrupt. They cannot prevent you from starting a DRO.

 

For Scottish residents, the same is true. Purchasers can vote on the acceptance of a Trust Deed or Debt Arrangement Scheme. They cannot prevent you from becoming bankrupt.

 

Debt Transfers During Your Debt Solution

 

It’s common for debts to transfer after debt solutions begin. Lenders may outsource debt collection of their account or sell the debt.

 

This may come as a surprise if you’re in a debt management plan. There’s generally no need to worry. Inform your debt management provider about the transfer. They’ll then deal with the new company.

 

Debts may also get sold during an insolvency process like an IVA. This should not be a cause for concern. Simply let your IVA supervisor know if you hear a debt has transferred.

 

Some Well Known Debt Collection Agencies

 

These firms may act on behalf of a lender or a debt purchaser:

 

• Allied International Credit (AIC)

• Debt Managers

• Fredrickson International

• Moorcroft Debt Recovery

• NCO Europe

• Robinson Way

• Wescot Credit Services

 

Some Well Known Debt Purchasers

 

Some of these firms collect debts as well as purchasing them:

 

• Arrow Global

• Cabot Financial

• Capquest

• Idem Servicing

• Intrum

• Link Financial

• Lowell Financial

• PRA Group

 

Get Debt Advice

 

Bright Oak deals with debt collection agencies and debt purchasers daily.

 

We provide debt advice and debt management plan services. We can connect you with high-quality providers of other debt solutions.

 

Contact us to start getting your debts under control.

 

 

Author: Andrew Graveson – Qualified Debt Adviser & Bright Oak’s Founder

 

Last Updated: 18/07/2019

Debt Management Protocol logo link Brightoak Twitter

Call

02920 492661

0800 0437222

You can take your complaint to the Financial Ombudsman Service. They assist you if you’re unhappy with the firm’s response to a complaint.

Debt Management Protocol logo link Brightoak Twitter

Debt Management Protocol logo link Brightoak Twitter