If you have defaulted on a credit card, a personal loan, or even a utility bill payment and have perhaps received a letter from a debt recovery agency, it might be worth familiarising yourself with these agencies and how they operate. This can help you figure out how best to work with them. Having clear communication with agencies can have a number of benefits. Clarity for all parties can progress the situation rapidly, avoiding unnecessary stress.
This article seeks some clarity on how a debt recovery agency operates. Legal Recoveries offer bespoke debt recovery solutions to a wide range of businesses and public sectors. Through our many years of experience we have handled over 323,000 cases with a value of over £525 million both in the UK and overseas. Our proven track record of success demonstrates that we will maximise the chance of recovery of the money owed to you through our various tried and tested strategies. Be sure to contact our friendly team today for enquiries.
What is a debt recovery agency?
A debt recovery agency (more popularly known in the UK as a debt collection agency) is a service business that assists creditors to collect debts owed to them. These agencies are usually used by creditors as a last resort after they have made multiple attempts to recover a debt. Some are small and specialise in the collection of specific types of debts while others are large and operate on a national scale, collecting a wide range of debts. The reason creditors use debt recovery agencies is because of their expertise. Having detailed knowledge and legal collection methods, debt collectors provide a service that may not be valid for creditors to attempt.
Debt Collection Agency Legitimacy
When receiving a letter, one action you can take to establish the legitimacy of a debt recovery agency is to request information about the agency, including its full company name, official phone number, physical address and consumer credit license number. A debt collection agency will rarely ever make initial contact via email. Be sure to check through your own records, confirming whether the debt is legitimate or not.
How Do I Work With a Debt Recovery Agency?
Opening a dialogue with the recovery agency when they contact you may be a better option than ignoring them. Ignoring their letters will only make them increase their efforts to get hold of you. If you owe the debt, you can explain to the agency why you haven’t paid it yet as well as your current financial situation. Most debt recovery agencies will understand.