Consumer Debt Recovery

consumer debt collection

consumer debt collection

Consumer debts are personal debts that derive from the purchases of household goods or consumptions. Examples that come under our consumer debt recovery service are utility debts, student loans, vehicle loans and phone contracts, in fact any type of debt that has been incurred by a consumer owed to a business – it could be dental fees or veterinary fees. LRC deal with a large range of consumer debts from a variety of different industries and collect both non-Consumer Credit Act (CCA) regulated debt and CCA regulated debt, provided there is a prospect of litigation.

Pre-legal Collections Strategy

Choose your consumer debt recovery strategy

Most consumer debts go through our pre-legal collection’s strategy. You can choose from our standard consumer collections strategy, or we can create a bespoke strategy together. This process allows us to try and resolve any disputes or complaints the customer may have if payment of the debt is not forthcoming.

All consumer debts are data cleansed before communications commence. The pre-legal collections strategy comprises of data cleansing, letters, emails, calls and SMS texts which are spread over a 30-day period. Payment can be made in a variety of different ways including direct debit, over the phone or via a 24/7 automated payment line. All of our collection letters have a unique bar-code to enable payment to be made at any Paypoint outlets.

We can arrange repayment plans once the customer completes and returns a Personal Financial Statements (PFS) to us. Once received, we assess what amount is sustainable for your customer. Payment arrangement plans are reviewed after 6 months.

Debt Collectors UK – Consumer-Focused Support

When you search for “Debt Collectors UK,” you’re really looking for a regulated partner who specialises in consumer accounts, understands FCA rules, and can guide debtors toward fair repayment without harming your brand. As a solicitor-led firm, Legal Recoveries & Collections delivers that balance of empathy and firm compliance, recovering overdue consumer invoices swiftly while protecting your reputation.

What is a Collection Agency?

A collection agency – sometimes called a debt-recovery firm – is an FCA-authorised organisation that pursues unpaid consumer obligations on behalf of businesses. By outsourcing to a specialist agency, creditors save internal resources, gain access to proven recovery processes and ensure every stage complies with UK consumer-credit legislation.

Consumer Debt Collection Agency Services

When overdue personal accounts threaten your cash flow, you need a regulated debt collection agency that treats every consumer fairly while securing payment quickly. LRC’s specialist team combines empathetic communication with proven legal expertise, guiding debtors toward affordable repayment plans or, where necessary, escalating to pre-legal action. We follow FCA and CSA Codes of Practice, so you stay fully compliant and protect brand reputation. From missed utility bills and unpaid tuition fees to salary overpayments, our step-by-step process—trace, contact, negotiate, recover—turns problem debts into predictable revenue. All case activity is visible 24/7 in Debt Manager, giving you real-time transparency from first letter to final payment.

Letter Before Claim - Debt Recovery

Debt Recovery Pre-Action Protocol (2017)

Under the Debt Recovery Pre-Action Protocol (2017), a Letter Before Claim (LBC) must be sent to the debtor before Court action can commence which gives them a mandatory 30 days to respond. The LBC must include an information form, reply form and detailed income and expenditure form. The Pre-Action Protocol does not apply to commercial cases.

Claim Form

Claim form for consumer debt recovery

We use the quicker Claims Productions Centre to issue claims through the County Court. We can handle any of your defended matters up to and including a final hearing. The work is supervised by Rachael Ward, our COLP lawyer (Compliance Officer for Legal Practice).

Judgment

Enforcement methods of consumer debt recovery

Once Judgment is obtained and if no payment has been received there are several enforcement methods to be considered and a number of reports which we can obtain to help us identify which enforcement method is appropriate. We will advise you on a case-by-case basis given the circumstances of the matter.

Enforcement

Types of enforcement

If a debtor fails to pay following the entry of Judgment, then there are a number of options to consider enforcing your Judgment:-

  • High Court Enforcement Agents – Personnel who are instructed under a Writ of Control to attend at a debtor’s property for the purposes of obtaining full payment of the Judgment debt. Enforcement officers are entitled to seize goods to the value of the debt to be sold at auction to satisfy the Judgment.
  • Attachment of Earnings Applications – An attachment of earnings application is made to the Court for the debtor to provide information as to income and expenditure for the Court to assess a fair and reasonable payment arrangement. If the debtor fails to provide the information the Court will contact the debtor’s employer direct and make an order that monies are deducted from the debtor’s salary each week or month.
  • Charging Order Applications Order – A Charging Order secures the Judgment debt against any property owned by the debtor. The Charging Order will often remain in place until such time as the debtor’s property is sold or remortgaged. In some circumstances, the creditor can force a sale of the property once a Charging Order has been obtained.

Insolvency

Statutory demands, bankruptcy petitions and winding-up petitions

Legal Recoveries & Collections Ltd. can assist you with insolvency, the inability to repay a debt, and issues surrounding it. The actions we take include:

  • Statutory Demands – This is a formal legal demand for payment and failure to make payment, raise a formal dispute or make contact could lead to a Bankruptcy Petition being issued as it’s often the pre-cursor to insolvency action.
  • Bankruptcy Petitions – A bankruptcy petition is presented to the court, allowing a debtor’s assets to be seized and sold to pay off any outstanding debts. Applying for this petition can be difficult, but LRC Ltd. makes the process as simple as possible for you.
  • Winding-Up Petitions –Following the issue and service of a Winding Up Petition a company can be forced into compulsory liquidation. The assets of this company will be distributed to the creditor before the business is dissolved.
Credit control

Tracing Reports

Reports that help in debt recovery

Depending on the circumstances there are several reports which we can obtain to help us determine the best way forward to successfully recover money for you. The reports could be for home address and employment tracing.

We offer our Insight report which identifies any County Court Judgments, credit applications made and checks residency. Office Copy Entries can also be obtained to see if your customer is a property owner. All of this can be valuable information which will help with the decision-making process as to whether litigation (court action) may be appropriate.

Mini or full Asset Trace Report

For high debt value cases

These are particularly helpful for high debt value cases, and they can establish a sole-trader’s whereabouts. The reports can be obtained at any point in the debt recovery cycle. They show whether taking court action is appropriate and cost effective and will help us to make recommendations to you on how to proceed. They can also be used at the post judgment stage to help determine which enforcement method is appropriate to use.

Through our experience of working together with organisations we will:

  • Save you time and valuable resources in the collection of money owed.
  • Devise strategies to maximise recovery of your debts.
  • Provide you with continued support. advice and assistance throughout the debt recovery process.
  • Ensure that your reputation is always protected by always acting in a professional, compliant, and ethical manner.
  • Provide you with Debt Manager access to enable you to keep updated as to the progress of your cases.
Get in touch

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Featured Customer Reviews

Nottingham City Council

I have had the pleasure of working with Legal Recoveries and Collections (LRC) for several years across various industries. Throughout our partnership, LRC has consistently demonstrated a deep knowledge of the market and provided strategic insights that have been invaluable to our business. Their excellent communication and commitment to delivering on promises have always stood out. LRC’s proactive approach, engaging early and adapting as needed, ensures that we are always prepared and supported. Their partnership style not only delivers the best results for our business but also enhances the experience for our customers.

Credit Control Manager – Leading International Law firm

“LRC provide a professional and efficient service, delivering regular updates and effective solutions”

International Credit Insurance Client

We have been utilising the legal review services of Legal Recoveries and Collections (LRC) for the past few years, and we couldn’t be more satisfied. Their reviews are consistently thorough and informative, becoming an essential part of our pre-legal processes. This has significantly helped improve our recovery rates and reduced overall legal costs. The team at LRC are also very easy to work with and always available to provide professional advice when needed. We highly recommend their services.

North East Ambulance Service

As an NHS ambulance Trust, we don’t have in-house debt collection specialists, so find it difficult to pursue monies outstanding once our usual follow up process runs its course. LRC was recommended to us by another local NHS Trust and we approached them to find out what they could offer. We have been using LRC for nearly 3 years now and have not been disappointed. Our collection rate is circa 70% which represents a significant sum of money that is coming back into the NHS for patient care.

The team are very knowledgeable on the best route to recovery but will also advise when its just not financially viable to pursue a debt any longer. We have regular updates and meetings with Andrea the client services manager so everything is kept on track. It’s always our decision but LRC give us the best tools to make the right one.

London Metropolitan University

We have worked with Legal Recoveries and Collections for a number of years now and they have provided an outstanding service to us. We have worked closely with the team and have a good working relationship with both Rachel and Andrea. Their online portal is very user friendly. They have collected both pre-legal and post legal debts for us to a high standard and we would recommend their services to anyone considering using them going forward.

Utilita Energy Limited

We contacted LRC when we wanted to strengthen our collections processes and recover debt after we had exhausted our internal processes attempting to collect. From the off, LRC offered exceptional advice and support and helped us shape the way in which we approach collections. The team at LRC have a wealth of knowledge and experience which has enabled them to collect a significant amount of money on our behalf and through their professional approach have helped to change customer behaviour in many cases from infrequent to regular payers. LRC have tailored their collections activities to meet our needs and regularly make suggestions to make sure we spend our money wisely to ensure maximum return from their services . We are currently working with LRC to create a bespoke training package that they will deliver to staff across the business who manage and recover debt. I would not hesitate to recommend LRC for debt recovery.

Consumer Debt Recovery FAQs

What types of consumer debts does Legal Recoveries & Collections recover?

Legal Recoveries & Collections handles a broad range of consumer debts including utility bills, student loans, vehicle finance, phone contracts, dental and veterinary fees, and any other debts incurred by individuals owed to businesses. We embrace both Consumer Credit Act (CCA) regulated and non-CCA debts, employing compliant, specialist strategies tailored to consumer debt challenges.

What is the typical process for consumer debt recovery?

The process usually starts with pre-legal contact, including data cleansing followed by letters, emails, phone calls, and SMS texts spread over approximately 30 days. If the debt remains unpaid, a Letter Before Action (LBA) compliant with the Debt Recovery Pre-Action Protocol is sent, giving the debtor 30 days to respond. If there is no response, a County Court Claim may be issued, potentially resulting in a County Court Judgment (CCJ) that allows enforcement actions.

How does Legal Recoveries & Collections ensure compliance with consumer credit regulations?

LRC strictly follows UK consumer credit laws, including the Consumer Credit Act 1974 and FCA regulations. Our communications are conducted fairly and transparently, ensuring debtors’ rights are respected without aggressive or misleading tactics. Compliance with the Debt Recovery Pre-Action Protocol 2017 ensures the consumer receives proper notice and the opportunity to respond before legal action begins.

What should I provide to start consumer debt recovery?

You should supply comprehensive documentation, including invoices, contracts, account statements, details of prior communications, and debtor information such as full name and address. This helps us verify the debt and tailor communications appropriately, improving collection success while adhering to legal standards.

Can you recover consumer debt that is regulated by the Consumer Credit Act?

Yes, LRC has expertise in managing CCA-regulated debts, which include credit agreements and certain loans. Our approach respects the stricter rules around such debts, ensuring claims are valid and compliant before proceeding with recovery or legal action.

How long does consumer debt recovery usually take?

Many consumer debts are settled during the pre-legal phase, typically within 30 days. If escalated to court proceedings, obtaining a CCJ and subsequent enforcement can take several weeks to months depending on the debtor’s responses and case complexity. LRC provides regular updates so you remain informed throughout the process.

What enforcement options are available if a consumer debt is not paid after judgment?

Following a CCJ, enforcement options include bailiff visits to seize goods, attachment of earnings orders to deduct money from salaries, charging orders on properties, or bankruptcy proceedings where applicable. LRC advises on the most appropriate enforcement based on debtor circumstances and legal restrictions.

Can repayment plans be arranged for consumers who cannot pay in full?

Yes, LRC works with consumers to establish affordable repayment plans based on their financial situations, often after receiving a Personal Financial Statement (PFS). This flexible approach facilitates fair resolution and often reduces the need for formal legal action.

How does Legal Recoveries & Collections protect my business reputation during consumer debt recovery?

We prioritise professional, respectful communication that aligns with regulatory requirements and consumer sensitivities. Our approach reduces the risk of negative publicity or complaints, helping maintain your brand reputation while achieving effective recovery.

What happens if the consumer disputes the debt?

If a dispute arises, LRC will seek to understand the debtor’s concerns, review your evidence, and aim to resolve the matter amicably where possible. If disputes cannot be settled, the case may proceed to court where both parties present their arguments, and a judgment is made.

Get in Touch with Us

If you have any questions about our service or would like to discuss your matters with us in greater detail, please contact the Business Development Team on 0330 024 6342