How to Deal with Debt Collectors.

How to Deal with Debt Collectors

As a business owner with outstanding debt, you may fear the dreaded knock on the door or call from a debt collection agency, or you may already have had court proceedings commenced against your business.

Struggling financially can be demoralising in and of itself, without the added pressure of how to deal with debt collectors. UK legislation mandates appropriate professional behaviour for debt collectors as monitored by the Financial Conduct Authority. Understanding the purpose and powers of debt collectors can help answer the question do I have to deal with a debt collection agency?

What Is a Debt Collection Agency?

When businesses become unable to repay outstanding loans or debts such as tax obligations with HMRC, or other accrued debt such as council rates, creditors may choose to outsource the recovery of debt.

To know how to deal with debt collectors, UK businesses must first determine if the debt collection agency is legitimate. Debt collection agencies (DCA’s) in the UK must be registered and acting in good faith under the Fair Trading Act.

If someone contacts you or your business claiming to be recovering debt for your creditors, an important first step is knowing who they are, who they are representing, and that they are indeed a registered debt collection agency.

A citizen advocacy group could be a useful resource or support at this time, as could a professional insolvency expert. Professional advice and guidance regarding your debt and options available to you can help take the headache out of knowing how to deal with debt collectors UK wide.

It is important to understand that debt collection agencies can take you to court to recover debt, but they are not bailiffs. As such they have no right to enter your home without your consent, and they do not have the power to take your possessions as part of recovering the debt.

Do I Have to Deal with a Debt Collection Agency?

Once you have ascertained that the debt collection agency and request for debt repayment is legitimate, you then need to action their request for payment. Failing to respond to a final demand or default notice from a debt collection agency could lead to court action.

Do I have to deal with a debt collection agency? Yes, while you do need to deal with a debt collection agency (or have someone deal with them on your behalf) you can request that they only contact you via mail, rather than by phone or house visits, as this is not only less confronting, but you also have a paper trail of all dealings.

Many businesses find it beneficial to have the assistance of a professional insolvency expert when dealing with debt. This can ease the pressure of knowing how to deal with debt collectors. UK legislation allows for several options for debt management and business recovery, but it can be overwhelming if you do not know where to start and you are feeling the pressure of debt collectors.

How Can Irwin Insolvency Assist You when Dealing with Debt Collectors?

If you find your business needing to respond to demands from a debt collection agency, you do not have to face it alone.  Irwin Insolvency has experts at helping businesses manage debt and negotiate with creditors to resolve debt. Contact Irwin Insolvency today for professional and tailored advice as well as peace of mind.

Contact Irwin Insolvency today for your free consultation

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0800 254 5122

About the author

Gerald Irwin

Gerald Irwin is founder and director of Sutton Coldfield-based licensed insolvency practitioners and business advisers, Irwin Insolvency. He specialises in corporate recovery, insolvency,
 rescue and turnaround.