Debt Agencies

Debt Agencies

a) What are Debt Agencies

Debt Collectors and Debt Agencies are companies that are trying to collect a debt. Sometimes they are working on behalf of the Creditor, and sometimes they have bought the debt (cheaply) and are trying to recover the owed balance as a profit making business. Both of these methods are legit as long as set regulations by the FSA and OFT is complied with. If you are contacted by a debt collection help company, always make sure they are licensed by the Office of Fair Trading.

It is estimated there are over 20,000 Debt Collection Agencies in practice collecting debts in the UK. Some act in a professional manner but unfortunately not all are like this. Many people are not aware that debt agencies have strict guidelines and regulations that they have to comply with.

If you are contacted by a Debt Agency, you need to make sure they are a genuine company collecting a genuine debt. keep all corrospondence received and if anything is agreed during a phone conversationo, make sure you get it in writing. Many debt agencies are reasonable allowing affordable payment plans to be set up.

Some people do not like to speak to Debt Agencies on the phone as it can be frustrating when a payment plan cannot be agreed or if the debt amount or details are incorrect. Many calls made to debtors are scripted (staff are following a set procedure) and they do not always appear to understand the regulations governing debt collection. Always get anything agreed in writing so you have 'proof' of what was agreed. If no letter arrives do not automatically accept what was agreed as what the debt agency has accepted.