What options do you have available to you when dealing with a debtor in the UK? Here is a list of possible steps:
- Chasing the debtor via phone calls or letters.
- Sending doorstep collectors; But you have to keep in mind that these are not bailiffs and can do little more than ringing the bell. A high street lender is less likely to use doorstep collectors as calling debtors is cheaper, more effective option.
- Continue adding interest and charges to the debtors’ account in line with the original agreement;
- Recovering money from connected accounts. However, termed the right of offset in legal language, it is an option which can be pursued only by banks. In case the debtor has a credit card and a current account with the same bank, they can use the current account to take what is owed on the credit card. The law allows them to do this without requiring permission from the debtor.
- Issuance of a default notice is usually sent after 3-6 missed payments. The law requires creditors to send the notice if the debtor has defaulted on the original agreement.
Most businesses will pass the debt on to an external collection agency in the UK, once they unable to collect the amount owed. This is always a better option for the creditors generally as they lack the skills or manpower to collect the debt. Moreover, there are agencies willing to take up even a single account and begin their job.
The designated teams as collection agencies are highly skilled in collecting debt. Leading agencies work on ‘No Recover, No Fee’ basis, therefore providing ample incentive to recover the debt in full. They would work to recover the debt within the legal boundaries of the country they are working in.
When other efforts fail, agencies can apply for a county court judgement (CCJ). When the debtor gets the notice, the best recourse for them is to fill in the paperwork and make an offer of repayment. The court would set a repayment and violating it may put a debtor into serious difficulties.