Disputing Debt In The UK: A Step-by-Step Guide

Stop Debt Collectors Disputing Debt In The UK: A Step-by-Step Guide

A Beginner’s Guide to Disputing Debt in the UK

If you have received a letter demanding money in the post, your first instinct may be to consider it a scam, especially if you have never heard of the company you supposedly owe money to. Fortunately, you have several options for disputing a debt that you believe is illegitimate instead of immediately paying it. Here is an overview of what collections companies are, how they work, and why DoNotPay is your best option for disputing the debt in the UK.

Are Collections Companies Scams? 

Unfortunately, most collections companies are not scams.

Legitimate debt collectors work for a wide range of companies and individuals, such as:
  • Hospitals, clinics, and other medical practices
  • Credit card companies, banks, and other lenders
  • University student loan companies
  • Mobile phone companies
  • Landlords
Some legitimate debt collectors you may have received posts from include:

Failing to pay recurring payments or make loan payments on time can cause your creditor to sell the debt to a collection agency.

How Debt Collection Works

A bank, hospital, or other company essentially sells your debt to the collections company to get their money faster. These third-party debt collectors are typically much more aggressive about recovering the money from you. Although collections companies tend to use threatening language and behavior that can make them sound dishonest, most collections companies are not technically scams.

What Happens If I Don't Pay My Debt to a Collections Company? 

Although it can be tempting to ignore a debt you do not owe, this is generally not the best decision. Refusing to pay a debt a collections company claims you owe can affect your credit score and result in additional legal action, even if the company is in the wrong. For this reason, working with an expert like DoNotPay to get rid of a debt collection company without the hassle is usually a smarter option. 

Has a Collections Company Violated My Rights? 

Just because a particular debt collector is technically a legitimate company does not mean they do not do dishonest things, and it is not uncommon for these companies to violate your rights. Collections companies can make mistakes, and they are often reluctant to correct an error that is their fault because they generally cannot sell the debt back to the original company and can only get their money back by demanding it from you. Some scenarios that may fit into this category include: 

  1. You are being told to pay an incorrect amount for a legitimate debt
  2. You are not the person that owes a legitimate debt
  3. You were never a customer of the company that claims you owe them money
  4. The collections company contacts you unreasonably often 
  5. The company continues to threaten you after you have repeatedly explained that your current financial situation makes paying a legitimate debt immediately impossible 
  6. Debt is more than six years old 

If your situation falls into any of these categories, DoNotPay is here to help you dispute it and make the collections company stop harassing you!

How Long Can Debt Collectors Collect Debt From Me? 

According to the Limitations Act 1980, debt collectors can attempt to collect debt for a maximum of six years. This means that they legally must stop harassing you once this time limit has passed as long as you have not acknowledged that your debt is legitimate or made any payments during that time. That being said, we know that you probably do not want to put up with a constant stream of threatening posts and telephone calls for six years, and we can help you dispute any debt that you do not believe is correct to help you get rid of the company without paying much sooner. 

Disputing Debt in the UK With DoNotPay 

DoNotPay can help you dispute your debt in the UK. Whether you were just recently contacted or have been harassed for months, DoNotPay can help you figure out whether your debt collector is compliant with debt collection laws.

After guiding you through a series of questions, we'll help you determine what course of action you should take, and contact the debt collectors with a demand letter on your behalf. If you choose to report the collection agency to a governing body instead, we'll file the complaint on your behalf.

Disputing Debt in the UK is Easy With DoNotPay

Just follow three easy steps.

  1. Search "debt collection" on DoNotPay.

     

  2. 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.

     

  3. 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 that's it! Once you choose the course of action you want to take, DoNotPay will handle the rest. We'll deliver your request directly to the debt collectors via first-class mail, or file your complaint automatically with the relevant trade association or ombudsman.

What Else Can DoNotPay Do? 

Making collections companies stop harassing you by disputing debt is just one of many ways DoNotPay can make your life easier. We can also help you: 

  • Dispute PCNs
  • Dispute other inaccurate fines or fees
  • Dispute or negotiate hotel bills
  • Obtain hotel, airline, or other travel upgrades
  • Improve your credit score
  • Apply for or close credit cards or bank accounts
  • Get help paying your rent
  • Find coupons, rebates, and other ways to save money on nearly any item

At DoNotPay, we never want you to feel pressured to pay a debt you do not owe. Contact us today to learn more about how we can simplify the process of disputing the debt in the UK.

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