ByCan a Debt Collector Refuse a Payment Plan in the UK?
We all know the unexpected can happen. Sometimes life takes an unanticipated turn, and a person may find themselves struggling to make their loan payment(s) on time. If this has happened to you, you may be faced with having to deal with a debt collection agency — and this brings with it a lot of questions. One of your many questions may be about repayment plans. So,
Let's find out!
Steps to Take Before You Set up a Debt Payment Plan
Before you set up a with a debt collection agency, if there's any doubt in your mind whether you owe the debt they're claiming you do, there are steps you can take to make sure the collection agency's claim is legitimate.
The first step is to determine whether the debt the collection agency says you owe is listed on your credit report. Below is a list of credit reporting agencies from which you can ask for a copy of your credit report.
If you can't find the debt on your credit report on your own, ask the debt collection agency to provide you with written proof that you truly owe what they're claiming. This written proof of debt from the collection agency is known as a debt verification request. If they refuse to honor your debt verification request, you don't have to pay anything to the collection agency.
If your research shows you do owe the debt, you still may not be obligated to pay it back, under certain circumstances. Per the Limitations Act of 1980, if you haven't submitted any payment to pay down the eligible debt for at least six years, and you haven't acknowledged in any way in the past six years that you owe the debt, you aren't obligated to pay. (This statute of limitations is extended to 12 years for certain types of mortgage debt.)
About Debt Repayment Plans
If you're sure you owe the money, the best thing to do is to attempt to set up a . Avoiding and/or refusing to deal with a debt collection agency will only escalate the issue.
Try to Negotiate a Reasonable Repayment Plan
It may be tempting to overextend yourself and promise to pay more than what is a reasonable amount for you, just to get a debt collector to stop harassing you. However, if you agree to an unreasonable debt repayment plan, eventually you won't be able to make the payments, and you'll find yourself right back where you started.
It's best to try to set up a reasonable repayment plan, even if it means the debt will linger over your head for longer than you prefer. Many debt collection agencies simply want to collect payments on which they can rely. You really have nothing to lose by trying to negotiate a that fits within your current budget. The worst that can happen is that the collection agency rejects your offer.
Can a Debt Collector Refuse a Payment Plan in the UK?
Technically, yes they can. Although, since most collection agencies are working on behalf of the lender you owe, it may be your original creditor that actually rejected your terms.
Regardless of who still owns your debt, it's important not to give up! There are still some important steps you can take to get the situation back on track.
| What if your original repayment plan is rejected? | Explain your current financial circumstances to the collection agency and include a copy of your current budget to show why you can't pay any more than your original offer. Let your budget numbers speak for themselves by showing that you're doing everything you can to pay back your debt. |
| What if you've made arrangements with other collection agencies? | Share written proof of these arrangements with the collection agency that's giving you a hard time. They may see that if other agencies are willing to work with you, they should do the same. |
| Start/continue to send payments to the collection agency anyway. | The payments may not be as large as the collection agency prefers, but your effort does show you're doing everything you can to pay off your debt. It also works in your favor, when you continue to pay down the balance you owe. |
What to Do if You're Still Struggling
If you're still having difficulty arriving at a reasonable repayment plan or if you feel a collection agency is being too unfair or even threatening, there is help available. Click here, to learn more about Debt Relief Orders and how to obtain one from an official receiver (an officer of the bankruptcy court). Obtaining a Debt Relief Order doesn't mean you've declared bankruptcy, but it will allow you to obtain some debt relief.
DoNotPay Can Help
If you’re getting frustrated with a , you have other options. DoNotPay can help. Just follow three easy steps:
- Search “debt collection” on DoNotPay.
- Answer a series of questions about the debt collectors, including when you were contacted and how you were contacted, so we can determine if they have violated any debt collection laws.
- Decide which course of action you want to take based on our guidance, such as filing a debt verification request, demanding for the collectors to stop contacting you, or reporting them to a professional trade association.
And there are more ways to use the app.
How to Handle Other Types of Debt
If you become delinquent with certain other types of debt such as doorstep loans, County Court judgment debt, or are having issues with a supposed overpayment of government benefits, the traditional methods of dealing with (through a debt collection agency) may not apply to you.
DoNotPay has researched all these various types of debt and has the answers to your questions. If you do have other types of debt, be sure to check out the links below to find the answers you need.
Need Help With Doorstep Loans?
How to Deal With Certain Debt Collection Agencies
- Get help with Moorcroft Debt Recovery Agency
- How to negotiate with Advantis Debt Collection
- How to navigate debt collection with Lowell Financial
How to Manage Government Debt
- Manage your debt with DWP Debt Management
How to Work Out Debt Issues With a Bailiff
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