1st Credit Debt Collection – Must You Pay? Read Here First

Have you just had a surprising letter from 1st Credit Debt Collection? Are you unsure about what to do next? Don’t worry; you’ve come to the best place for guidance. 

Each month, more than 170,000 people come to our website for help with debt matters. Nearly half of individuals who deal with debt collection agencies have experienced harassment or aggression.

I hope it helps to know that you’re not alone in this – and we’re here to support you. 

In this article, we’ll help you to:

•  Understand who 1st Credit Debt Collectors are.
•  Learn why they have contacted you.
•  Figure out if the debt they mention is really yours.
•  Know if you have to pay this debt.
•  Learn how to deal with debt issues and your options for getting out of debt.

We know that getting a letter from a debt collector can be scary. That’s because some of us have also faced the same problem. We’ve been in your shoes.

So, stay with us, and learn how to handle 1st Credit Debt Collectors. We’re here to give you the best advice based on our vast experience in dealing with such issues.

Why you are being contacted by 1st Credit Debt Collectors?

The phone rings and an agent from 1st Credit Debt Collectors is on the other side talking about some debt you owe! If you have not heard of this company before, you are likely to want to tell them to get off the phone and go and bother someone else! However, if you owe the money they are contacting you about, you have a responsibility to pay it.

The way debt collectors operate is simple. They take unpaid debt from other organisations, such as gas and electricity suppliers, credit card companies or payday lenders, and they start the process of chasing the debt on their behalf. They buy the debt, and pay a much lower fee for it than the face value. Although it can be difficult to get debtors to pay up, they can make a lot of money if they do! Unfortunately though, there are many debt collectors who are not exactly fair and proper in the methods they use to obtain the debt. They can sometimes be abrasive, disrespectful and even downright bullies!

Establish if the debt is yours

Don’t just pay the debt blindly without receiving confirmation that it is yours, as there is every chance that you have been sent it in error. If you don’t recognise the debt at all, it is even more important not to pay it until you have received confirmation. Remember though, the total cost will probably be more than you remember, as a result of the charges!

In the first instance, write to 1st Credit Debt Collectors with a request for a copy of the original credit agreement. Do not pay until they have sent this and you are completely happy with everything you read.

Follow our ‘prove it’ guide with letter templates and get them to prove that you owe the money.

Establish if the Debt is Enforceable

If it has been 6 years – or 5 years in Scotland – since you last paid towards your unsecured debts and you have not written to your creditor about your debt during this time, it is statute-barred.

This means that the debt is not enforceable. It still technically exists, and you still technically owe the money, but there is no legal way for you to be forced to pay or for the debt to be enforced.

Keep in mind that not all debts become statute-barred!Any HMRC debts, for example, will stay enforceable for decades. Any debt that had a County Court Judgement (CCJ) attached to it during the 5 or 6-year window it will be enforceable for the duration of the CCJ.

From my experience, it is not uncommon for debt collection companies to push their luck with statute-barred debts! Take this example;

A debt that has not been dealt with since 2006 will almost definitely be statute-barred! Sometimes debt collectors will send out letters for old debts, possibly in the hope that less vigilant people will pay without thinking!

You can use my free letter template to write to 1st Credit and explain that you think the debt is statute-barred.

Wiritng to a debt collector about your statute-barred debt won’t reset the 5 or 6 year timer. But if you are unsure, you can contact a debt charity for some free advice. I have linked some at the bottom of this page.

» TAKE ACTION NOW: Fill out the short debt form

Why do I need to pay this debt?

Quite simply, if you owe the money, it is your debt and you need to pay up! This will help limit any credit score impact and help keep your finances healthy.

It is not always plausible to make a full payment to the debt, and this is why most debt collectors allow you to make an arrangement to pay off the debt. They may ask to see your income and expenditure before agreeing to your suggested repayment plan, but they will usually be quite accommodating.

There is also the chance that 1st Credit Debt Collectors will accept a partial payment to clear the debt.

You can use my free letter templates to negotiate a different payment plan, or even make full and final settlement offer

The consequences of dealing with debt

It is never easy dealing with debt, even if you don’t have too much of it. Financial stress can be very severe.

If you add debt collectors into the mix too, it can cause debtors to feel like they are no loner in control of their lives. In some cases, debt collectors use underhand tactics to try and get payments, including bullying and harassment.

If you have been contacted by1st Credit Debt Collectors, you may not know where to turn.

Your debt may be spiralling and you might be fed up with the constant calls and abuse you have received from debt collectors.

Worrying about finances can be devastating and it can have a real impact on the quality of your life. Some people have been left feeling humiliated and embarrassed about their debt, and they have also shared feelings of being trapped.

In fact, the debt support trust even stated that some debtors feel like suicide is the only option for them, as they are so concerned about their spiralling debt problems. The debt industry has got so bad over the years, that the government had to take charge of the situation. They had to do something to stop people getting into debt and to stop lenders from treating debtors unfairly and making their situation worse.

Getting out of debt

If you are dealing with a debt collection company or just struggling to manage your money, I recommend speaking to a debt charity for some professional debt advice.

There are several charities and organisations in the UK that offer free debt counselling services and free financial advice. Their advisors will be able to walk you through your options and find the best solution for you.

• StepChange
• National Debtline
• Citizens Advice
• Debt Advice Foundation.

Can I Get a Debt Solution?

If you are dealing with 1st Credit Debt Collection or struggling to pay your unsecured debts, you may benefit from a debt solution.

There are several debt solutions available in the UK so I recommend speaking to a debt charity for some free advice. Their advisors will be able to walk you through your options in detail and find the best solution for you.

I have linked a few of these groups above.

Debt Management Plan (DMP)

A DMP is an informal debt solution that lets you pay off your debts via a single monthly payment.

Because it is informal, it is not legally binding so you are not tied into a DMP for a minimum number of payments.

Individual Voluntary Arrangement (IVA)

An IVA is a formal agreement between you and your creditors. You agree to pay a monthly sum that is distributed amongst your debts, and your creditors agree not to contact you during your IVA.

IVAs typically last for 5 or 6 years, and any outstanding debt is wiped off when it ends.

Keep in mind that IVAs are not suitable for everyone. You need to owe several thousand pounds to more than one creditor to be eligible. You also need to demonstrate that you have some disposable income every month.

Trust Deed

IVAs are not available in Scotland. Instead, you will need to opt for a Trust Deed.

Trust Deeds work in the same way as an IVA – you pay an agreed sum each month that is shared amongst your creditors, they can’t contact you, and any leftover debt at the end of your Trust Deed term is written off.

Debt Relief Order (DRO)

A DRO is a good option for those facing financial hardship with no assets and little income.

For 12 months, you make no payments, but your creditors freeze your interest and don’t contact you.

If your finances haven’t improved during this year, you may be able to write off your unsecured debts.

Bankruptcy

If you have debts but no realistic possibility of ever paying them off, you may need to declare bankruptcy.

Bankruptcy has an unfair stigma attached to it as it may be your only way of getting a financial fresh start. That said, it is a serious financial situation that should not be taken lightly.

Sequestration

Sequestration is the Scottish version of bankruptcy.If you have little income and no valuable assets, you may be able to apply for a minimal asset process bankruptcy (MAP). A MAP is a quicker, cheaper, and more straightforward version of sequestration, so worth considering.

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How do I Make a Complaint Against 1st Credit?

If you think that 1st Credit has been unreasonable or behaved inappropriately, you can make a complaint. You can also make a complaint if you feel that they have broken any of the Financial Conduct Authority’s (FCA) guidelines.

Make your first complaint to 1st Credit so that they have the chance to sort out the issue themselves. If you feel that they have not taken your complaint seriously enough or have not addressed your issue properly, you can escalate matters.

You can make any secondary complaint to the Financial Ombudsman Service (FOS). They will investigate and, if your complaint is upheld, 1st Credit may be fined. You could even be owed compensation.

Round-Up

If you have debt you need to pay it, that much is true. However, you are not there to put up with debt collectors that are being abusive towards you, or are harassing you for the payments. You need to take steps to pay your debt, but always in a controlled way. You should never refuse or ignore contact from debtors, but you should get proof that it is yours and reach an amicable arrangement to repay it. If they are bullying you in an way, you have the right to make a formal complaint. You can do this by getting in touch with the Financial Ombudsman and they will take the case over. In some instances, they may lose their licence as a consequence of their behaviour.

1st Credit Debt Collectors Contact Details

Other Debt Collectors 

You should check for more outstanding debts that you may have with other companies or debt collectors. Here are four steps you could take: 

1. Check your credit report for other defaults 
2. Check your email and post for reminders or overdue notices
3. Check the court records for CCJs against you
4. Check your bank statements for the names of other debt collectors 

There are hundreds of debt collectors in the UK and each works with different companies to collect debts.

For example, Cabot Financial have been known to collect for the DVLA while Lowell Financial and PRA Group buy debts from various credit card companies like Barclaycard.

If you see a name on your bank statement that you don’t recognise then you can search MoneyNerd to see if they’re a debt collector. 

FAQs

References

CONC 7.3 Treatment of customers in default or arrears (including repossessions): lenders, owners and debt collectors

CONC 7.9 Contact with customers