If your creditors have trouble getting the money you owe them, they may use a debt collection agency to chase the debt. Debt collectors aren’t court officials and don’t have the same powers as bailiffs. They can’t enter your home or seize your possessions. They can only write, phone, or visit your home to discuss the debt and how to pay it back. Debt collectors must follow the FCA (Financial Conduct Authority) debt collection guidance.

It’s important you don’t ignore them. Most debt collection agencies follow strict guidelines and will try to help you wherever possible.

Below is a selection of some of the debt collection agencies that we deal with:

  • Connexus Debt Recovery
  • Arrow Global
  • Moorcroft
  • Cabot
  • Marstons

What is a debt collection agency?

A debt collection agency is a company hired by creditors to recover money that is owed to them. They act as intermediaries between the creditor and the debtor, attempting to collect the outstanding amount.

What can collection agencies do to collect a debt?

Debt collection agencies can contact you by phone, mail, or in person to discuss your debt and arrange a repayment plan. They can also report your debt to credit bureaus, which may affect your credit score.

Do debt collection agencies take you to court?

Debt collection agencies themselves do not have the power to take you to court. However, they can recommend that the creditor take legal action if the debt remains unpaid.

Do HMRC use debt collection agencies?

Yes, HMRC can use debt collection agencies to recover unpaid taxes and other debts owed to the Government.

Do you have to pay a debt collection agency?

You are legally obligated to pay the debt you owe, whether it is to the original creditor or the debt collection agency. If you are unable to pay, it’s important to communicate with the agency to explore repayment options or seek debt advice.

For more information and help with your debts, visit our Debt Solutions page or learn about specific solutions like Individual Voluntary Arrangements (IVAs).

If you are receiving letters or telephone calls from debt collection agencies then you can contact us now for help.