Arrow Global Debt – Should You Really Have To Pay?

Dealing with unplanned debt can be tough, especially when you receive a sudden letter from a debt collector like Arrow Global. If you’re wondering about the debt, whether you should pay it, or if it’s real, don’t worry. We’re here to help.

Over 170,000 people come to our website each month for advice on debt issues, so you’re not alone. We understand your worry and confusion about this debt, as research shows 64% of UK adults find interactions with current debt collectors stressful¹.

In this article, we’ll explore:

•  Who Arrow Global Debt Collection is and why they might be on your credit report.
•  How to respond to Arrow Global Debt letters.
•  What to do if Arrow Global proves your debt or takes you to court.
•  Possible ways to write off some Arrow Global debt.
• Debt solutions you can use, such as Individual Voluntary Arrangement (IVA), Trust Deed, Debt Relief Order (DRO), Debt Management Plan (DMP), Bankruptcy, and Sequestration.

With our expertise, we hope to bring clarity to your situation and help you make informed decisions. We’ve walked many others through similar situations, and we’re ready to do the same for you.

Who Are They?

Capquest Debt Recovery Limited is an authorised and regulated business that claims to help people get out of debt with a debt solution. However, Capquest is related to Arrow Global so you are really just agreeing to a payment plan to clear the debt with Arrow via one of their other businesses. The Arrow Global Group purchase the debt as a DCA and then Capquest arrange a way for customers to pay.

The average unsecured debt amount has increased by 27% year-on-year (to £16,174)², so payment plans like the one mentioned above have become more and more common over the years.

Why are they on my credit report?

The reason Arrow Global is calling you is because they bought your debt from your old credit provider and think you owe them money. The reason you haven’t heard of Arrow Global before may be puzzling, but your Notice of Assignment should specify who originally held your debt.

How should I reply to the letters?

You are probably reading our guide because Arrow Global Limited has sent you a letter asking you to pay in full, arrange a repayment plan with Capquest or threaten you with court action. 

The onus is not on you to pay until they supply proof that you owe the debt. So first, it’s time to request this proof with a letter.

You can download our free letter template to request debt proof. You do not need to send the letter if the debt is at least six years old and you have not paid in those years. Instead, get a debt charity to confirm your debt is too old to be repaid and send a statute-barred letter instead – problem solved for good!

UK Personal Debt 2021 Update:
As of April 2021, the total unsecured debt per Adult in the UK was £3,674.

(Source: The Money Charity)

I always recommend responding to debt collectors – even just to question the debt’s validity. Remember, you have the right to request proof of the debt. They have to prove it or they can’t charge you.

» TAKE ACTION NOW: Fill out the short debt form

What Should I Do If My Debt Was Proven?

You might have almost gotten away with it, but if Arrow Global provides proof of your debt, you will need to pay off the outstanding amount on your account.

With proof, they will be successful in court and you will be made to pay. So tackle it early to avoid any more fees and debt interest. You could agree to a repayment plan, or you might be able to get a better solution with these get-out-of-debt methods.

This is why you should always make a debt collection agency prove your debt – Arrow Global debt collection practices can quite often make mistakes!

Being up to date on your rights as a debtor is also a good idea.

Because this person knew their rights, they kept calm because they knew that there was nothing enforceable about the alleged debt.

Here’s a quick table summarizing debt collectors’ rights to help you have an edge over the situation.

Debt Collectors Can	But They Can’t
Contact you by phone or mail.	Call you after 9pm or before 8am.
Conduct home visits (on rare occasions) and knock on your door.	Forbily enter your home, or stay if you ask them to leave.
Threaten to take you to court by suing you for payment on a debt.	Harrass you, including threats of violence, repeated calls and visits, or abusive language.
Negotiate a debt settlement. Tip: make sure to get this new arrangement in writing.	Visit your workplace.
Access your bank account, but only after a court judgment has been made.	Take anything from your home or threaten to do so.
Sell your debt.	Speak to other people about your debt without your permission.
Contact you frequently.	Keep doing so if you request that they reduce communications.

They Are Taking Me to Court – What Do I Do?

If you have ignored Arrow Global, or been unable to come to a repayment agreement, they can apply for a County Court Judgement (CCJ). A CCJ orders you, the debtor, to repay the debt. If you ignore a CCJ, further legal action can be taken.

If possible, you should repay the debt in full within 1 month of the CCJ issue date. If you do so, you can apply to have your entry in the Register removed. Credit reference agencies will then be notified that you have repaid your debt, and the CCJ will be wiped from your record.

If you can’t pay your debt in full within the first month, you should come to a repayment agreement. Unfortunately, the CCJ will remain on your credit report for six years, even if you repay it before the end of the six years. This will affect your credit score and your ability to get credit.

Can I Use a Debt Solution?

If you are struggling with your debts, a debt solution can help you get back in control of your finances. There are lots of debt relief options in the UK so take the time to make sure you find the best solution for you.

Individual Voluntary Arrangement (IVA)

An IVA is a legally binding agreement between you and your creditors. You will pay an agreed sum for a set period of time – usually 5 years – and at the end of your IVA, any remaining debts are written off.

One of the major advantages of an IVA is that you don’t deal with your creditors – your Insolvency Practitioner (IP) does it on your behalf. Your creditors are unable to contact you in any way during your IVA, including court action!

Keep in mind that an IVA does not cover all types of debt. Secured debts can’t be included in your agreement and any debts due to court fines, child support, and student loans will not be covered.

You also need to owe a substantial amount of debt to more than one creditor to qualify for an IVA. Your monthly payment is also based on your income so, if you have very little disposable income, a different debt solution might be more appropriate.

Trust Deed

A Trust Deed is basically the Scottish equivalent of an IVA. IVAs are unavailable to you after 1 year of living in Scotland – you need to opt for a Trust Deed now.

Other than geography, the other key differences between a Trust Deed and an IVA are the amount of debt required to qualify and the duration of the agreement.

An IVA will last around 5 years, but a Trust Deed typically lasts for 4 years. You need to owe more than £5,000 to more than one creditor in unsecured debts for a Trust Deed, but most IPs will only consider opening an IVA if you owe more than £6,000.

Debt Relief Order (DRO)

A DRO is a debt solution for those with very little disposable income and few valuable assets.

A DRO stops your creditors from contacting you or taking further legal action for 12 months once it is approved. After the year, your finances are looked at again and if there is no improvement any remaining debt is written off.

To qualify, you need to demonstrate that your monthly disposable income is less than £75 for England and Wales and £50 if you live in Northern Ireland. A DRO is not available if you live in Scotland.

Debt Management Plan (DMP)

A DMP is an informal debt solution. As part of a DMP, you will negotiate with your creditors to freeze or reduce your interest and agree to a repayment plan.

This solution is for non-priority debts and can be set up by a debt charity. Keep in mind that it is not legally binding to your or your creditors, but any missed payments can make your situation worse.

Bankruptcy

Bankruptcy is many people’s final option when they are struggling with debt. It can be your only option if you owe significant debts with no real way of paying them off.

While there are some negative attitudes towards bankruptcy, it can be the best option for some people.

Keep in mind that bankruptcy is a serious financial situation and should not be taken lightly. However, at the end of the process, many of your debts may be written off. This allows many people to financially go back to square one for a fresh start.

Sequestration

Sequestration is the Scottish version of bankruptcy.

To qualify, you must owe more than £3,000. Anything less than £3,000 may qualify you for a MAP bankruptcy which is a solution for people with few assets.

With so many options available, it is a good idea to get some advice. There are several charities and organisations in the UK that offer specialist advice and can walk you through different debt options.

What Can the FCA Do?

The Financial Conduct Authority (FCA) regulate those providing financial services, including debt collection agencies.

This means that there is a strict code of conduct that all companies regulated by the FCA have to follow – including Arrow Global. If you think that Arrow Global has not followed these rules and has not done anything when you raised your concerns with them, you can make a complaint.

Your complaint needs to be made to the Financial Ombudsman Service (FOS) which can investigate and issue fines or compensation as appropriate.

Arrow Global Debt Contact Details

Telephone:	+44 (0)800 130 0169 Monday to Friday 8.30am – 5pm Closed weekends and public holidays
Address:	Arrow Global Group Limited Belvedere, 12 Booth Street, Manchester M2 4AW
Post:	PO Box 5498, Manchester, M61 0PG, United Kingdom
Website:	www.arrowglobal.net
Email:	[email protected]

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. 

References

1. InDebted, Debt Collectors Survey
2. StepChange, Scotland in the Red

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

CONC 7.9 Contact with customers