How Much Do UK Debt Collectors Buy Debt For?
It can come as a surprise when debt collection agencies start contacting you for a debt that you have almost forgotten exists. Debt collectors often buy debts from the original creditor for a small percentage of the total amount that was owed. They will then track the debtor and give their best effort to collect on the debt to gain profit.
Knowing how much debt collectors buy debt for in the UK will give you a bargaining advantage. Understanding how the system works could be your ticket out of your current financial difficulties. This is where DoNotPay can help. You can use this robot lawyer’s expertise if you are unsure about how to deal with debt collectors, what your rights are as a debtor, or how you can potentially reduce your debt in some way.
DoNotPay can also help in dealing with debt collectors all across the UK. Here are a few that we have dealt with in the past:
- Lowell Financial
- Provident Loans
- Amigo Loans
- Marston Group Holdings
- Moorcroft Debt Recovery
- DWP Debt Management
- Advantis Debt Collection
Read on if you are ready to empower yourself against aggressive debt collectors.
Why Are Debt Collectors Persistent in Calling You?
If you have a strange number calling all the time, it could very well be a debt collector. And while you may not even know when your debt has been sold, nor how much a debt collector bought your UK debt for, the nuisance calls are persistent.
There are a few distinct reasons why you might all of a sudden be hearing from a debt collector:
- They are looking to verify your debt amount
- They are in the process of collecting on the debt that you owe
- They are intentionally intimidating you with the hopes that you will feel pressured enough to settle the debt immediately.
How Much Do Debt Collectors Buy Debt for in the UK?
When you rack up a debt, you'll eventually deal with fees and growing interest charges. But when a debt collector buys your debt from a creditor, it is more often than not only for a percentage of the original amount that you owe.
Collection agencies often buy the debt through a bidding process, usually paying 10p for every pound of the debt they are purchasing. Each purchasing agreement will vary, however. And the debt type and portfolio size contribute to the official purchase price.
Now the good part is, you can offer to pay roughly 30-70% of the known balance. This will show you are in good faith when it comes to settling the debt but you still get a good bargain in clearing your credit history.
Why Would My Creditor Sell My Debt?
There are a variety of reasons a creditor might sell your UK debt to a debt collector. Typically, they sell it for less than the original debt. So, why would they do that?
- Recovering some of the debt via an agency purchase is better than not recovering the debt from you at all.
- They specialise in lending services, not chasing debts or investing in efforts needed to recover debts.
- A creditor might determine a series of recurring late payments isn't worth it to the bottom line.
- A lump-sum payment, even if it's less, is more attractive than minuscule irregular payments from you.
What Happens If I Ignore My Collection Agency Debt?
Regardless of what a debt collector bought your debt for in the UK, once engaged, you'll need to know the timeline for payment. Most debts in England, Wales, and Northern Ireland cannot be legally pursued beyond six years. So, collection agencies will leverage every available tactic and timeline to hold you accountable for payment until then.
- It's best to verify your debt immediately, at least within 30 days of contact.
- It's best to dispute collection amounts immediately, at least within 30 days of contact.
- It's best to pay your collections or establish payment plans immediately, at least within 30 days of contact.
Collectors can take you to court if you avoid them altogether, regardless of how much they bought your UK debt for in the beginning. So, as much as you may not be comfortable with it, make contact.
Debt collectors are regulated by the Financial Conduct Authority. If you feel over-pressured to pay more than you can afford, you can report the agency and their misconduct.
Below are the contact details for the Financial Conduct Authority
|Phone||0800 111 6768 (freephone)
0300 500 8082 (from the UK)
+44 207 066 1000 (from abroad)
|Live Chat||FCA Contact|
|Postal Address||12 Endeavour Square, London E20 1JN|
How DoNotPay Can Help With Debt Collection in the UK
Whether you have just recently been contacted for the first time or have been harassed by debt collectors for months, DoNotPay can help you figure out whether your debt collector is compliant with debt collection laws.
After some guidance through a series of questions, we'll help determine what course of action you can and should take as well as contact the debt collectors with a corresponding demand letter on your behalf. If you elect to report the collection agency to a governing body instead, we'll file that complaint on your behalf, too.
Just follow these simple steps:
- Search "debt collection" on DoNotPay.
- Answer a series of easy questions about the debt collectors, including when you were first contacted as well as how you were contacted, so we can then determine if they have violated any debt collection laws.
- Decide which available course of action you want to take based on our provided guidance, which may include filing a debt verification request, demanding the collectors stop contacting you altogether, or reporting the violating agencies to a professional trade association.
And that's it! Once you select the course of action you'd like to take, DoNotPay will take care of the rest. We'll even deliver your request directly to the debt collectors via first-class mail or file your complaint automatically with the relevant trade association or ombudsman.
Explore Other Problems DoNotPay Can Help You Solve!
Now that you know how much debt collectors buy debt for in the UK, you can use DoNotPay for the other solutions it can offer.
Here are a few financial solutions that you might find helpful:
- File a lawsuit in small claims court
- Get help paying other bills
- Find free trials to sample
- Explore and claim any missing money owed to you
- File complaints with private companies
- Learn how to cancel subscriptions
- Request credit limit increases
- Setup paying your bills online
Sign up with DoNotPay right now and discover how much you can accomplish when you have an efficient robot lawyer available online.