CL Finance Limited Debt – Do You Have to Pay?

Are you puzzled about a debt from CL Finance Limited? You might be unsure if the debt is real or if you can afford to pay.

You’re not alone. Every month, over 170,000 people visit our website for advice on issues with debt.

In this article, we’ll guide you through:

•  Who are CL Finance Debt Collectors?
•  Why they might be contacting you.
•  How to know if the debt is truly yours.
•  Your options if you can pay, but are unsure if you should.
•  Ways to deal with debt collectors without letting them ruin your life.

We have lots of experience and knowledge about dealing with debt. We’ll share what the law says about debt collectors and how you can stand up to them. We’ll also tell you about different solutions that might help with your debt.

So, let’s get started on sorting out your questions about CL Finance Limited Debt.

Why are CL Finance Debt Collectors contacting you?

Debt collection is massive these days, as so many people struggle with debt issues. There are many different types of debt collectors, and in some cases, the way they behave is questionable.

Some debt collectors work independently, while others work together with the creditor (the company you have the debt with.) There are even sole traders who operate under the remit of debt collectors.

The way debt collectors operate is the same, regardless of the way they work. They purchase debt from the company you have the debt with.

For instance, if you had a bank loan with Santander and you hadn’t paid it back, they may pass your debt to CL Finance Debt Collectors, for a small fee.

This can be as little as 20% of the total value of the debt, so it can be a nice earned for the debt collection agency.

This is why there are so many debt collectors, and it also explains why they are so persistent in trying to get the payments. There are many debt collectors who are treating debtors unfairly, due to their poor practices.

How do you know if the debt is yours?

You should find out more about the debt, before you make any payments, especially if you don’t recall it. Speak to CL Finance Debt Collectors and find out where the debt came from and a breakdown of what you owe, including charges and interest. Your debt has probably grown arms and legs since the last time you seen it!

You can get this information by writing to CL Finance Debt Collectors, with a request for the original credit agreement. If they are unable to send this to you, you would not be under any obligation to pay the money to them. There is no valid reason why they shouldn’t be able to provide this.

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

No matter what CL Finance may tell you, you are under no obligation to pay for a debt that can’t be proven to be yours. Take a look at this example.

From my experience, I can tell you that debt collectors will often send out payment requests on the off chance that you won’t check before paying. So this letter was probably sent out with next to no assumption that the forum user would pay up.

If you are in a similar situation with CL Finance, you can ignore letters like this. If requests are frequent, you can make a complaint, as this could be seen as harassment.

Can pay, but should you?

If CL Finance Debt Collectors are able to prove that the debt is yours, and you are happy that it is accurate, the next step is to make payment. If you are financially able, it would be wise to clear the debt.

However, if this will prevent you from paying your day to day bills, you should set up a payment arrangement instead. You may even be able to make one partial payment to clear the debt in its entirety.

So do I have to pay CL Finance?

There have been many warnings, and even changes to the law, but this unfortunately, has not stopped some of the behaviour of certain debt collectors. In some cases, they have driven debtors to despair, even contemplating suicide in some instances.

It is difficult to believe the way they treat debtors. You should always pay back your debt, but you must do it in a way that works for you. You should not put up with debt collectors to decide to abuse you. You can make a complaint, but if this doesn’t change anything, there is the option of reporting the debt collectors to the Financial Ombudsman. In some cases, they may lose their license as a result of their treatment towards debtor.

» TAKE ACTION NOW: Fill out the short debt form

Can I get a debt solution?

If you have unsecured debts that you are struggling to pay, or know that you’ll be in severe financial hardship if you do pay them, you might benefit from a debt solution.

Apart from helping you pay off your debts, many debt solutions come with the added bonus of making it impossible for your debt collectors to contact you. Starting a formal debt solution might be all you need to help get CL Finance Limited off your back.

There are several different debt solutions available in the UK, so I recommend speaking to a debt charity as soon as possible. Their advisors will be able to look at your finances in detail and help you work out which debt solution will work best for you.

I have linked a few charities that offer these advisory services for free below.

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.

Find out more about CL Finance Debt Collectors

It is vital to know more about CL Finance Debt Collectors before you understand how to deal with them. These are some facts you may not be aware of:

They lose money if you don’t pay

CL Finance Debt Collectors may purchase the debt at a low cost, but if they don’t get any payment from you, they have lost money on the debt they have bought.

This is why they will throw everything at getting you to pay up. They may even stoop as low as to harass you, or force you into making payments, you can’t afford to make.

Therefore, the last thing they want the agents to do is come back saying that they weren’t able to get payment. This will also affect the agents ability to make any bonus.

As the saying goes, you need to stay strong in the face of adversity. There is no point in letting CL Finance Debt Collectors affect you badly, as this will just make you feel worse about your financial situation.

Understanding how debt collectors operate is a step in the right direction of dealing with your debt situation.

They may try to intimidate you

One of the tactics often used by debt collectors like CL Finance Debt Collectors is harassment. This may include calling you excessively, even every half an hour in some cases or even failing to speak when you do answer.

These tactics are designed to try and wear you down and intimidate you into paying. This is not behaviour that you should just accept.

If you are being harassed by CL Finance Debt Collectors, especially if they are calling you excessively, you should keep a note of the times of the calls. This will allow you to report them to the Financial Ombudsman, as they are breaching the regulations.

You can contact the Financial Ombudsman by phone on 0800 023 4567 or 0300 123 9123

Unfair behaviour

The agent who calls you may seem friendly, and happy to help, but they will probably change their tune when they work out that you can’t afford to make a payment to them!

You may be left feeling humiliated after the call, and it could even become abusive. Unfortunately, this is not uncommon in the debt collection industry. The agents are under pressure to get payments, and this can cause them to use the worst possible tactics in pursuit of the funds.

They may harass you by calling you excessively, or use abusive behaviour. They may even send sinister letters and emails to try and get your attention. They want to wear you down so you get fed up and respond to them.

If you keep ignoring them, they won’t just give up. They will keep contacting you until you react to them. It is, of course, important that you pay your debts, but you should do so in a controlled manner.

It is not easy dealing with this behaviour, but if you stay strong and understand your rights, it will be much easier to deal with.

If you are unhappy with the behaviour of debt collectors, you can make a complaint. I go through this process in detail below.

Have they spoken to others about your debt?

There are occasions when some debt collectors will feel that they have the right to speak to someone else about your debt, if they haven’t managed to reach you. They may discuss your financial situation with a family member, partner, or some have even been known to discuss it with colleagues. This is illegal and it is a breach of the FCA guidelines. It also breaks the privacy laws.

How do I make a complaint?

If you think that CL Finance 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 CL Finance 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, CL Finance may be fined. You could even be owed compensation.

CL Finance Contact Details

Name:	CL Finance
Also Known As:	Part of Lewis Group
Address:	Kingston House, Centre 27 Business Park, Woodhead Road, BATLEY WF17 9TD
Telephone:	Could be 01924 444466 (BUT DO NOT PHONE C L FINANCE)
Extra Data:	Seem to be associated with GE Money (as a client perhaps) and are part of the Lewis Group (q.v.) which in turn is owned by Cattles, which is a FTSE 250 company.

Other Debt Collectors to look for on your Credit Report

There are hundreds of debt collectors in the UK and they each collect for different companies.

It’s surprisingly easy to not notice that you’re in a debt collector’s crosshairs.

I’d suggest you spend time checking your credit report. If a debt collector purchases any of your debt, it will appear on your credit report.

Some of the biggest to look out for include Cabot, PRA Group, and Lowell.

So if you see anything relating to their names, then you’ll need to investigate further.

References

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

CONC 7.9 Contact with customers