MIL Collections Debt Collectors – Should You Pay?

Have you received a letter from MIL Collections Debt Collectors and are unsure what to do? This is the right guide to help you navigate through the situation.

Every month, more than 170,000 people turn to our website for advice on matters relating to debt, so you’re not alone.

In this article, we will explore:

• Who MIL Collections Debt Collectors are and who they work for.
• Why they are reaching out to you.
• If they can take your home.
• Whether you can write off some of your debt with MIL Collections.
• The options available if you can’t afford to pay your debt today.

We understand that receiving a letter from a debt collector can be worrying and confusing; in fact, research shows that 64% of UK adults find interactions with current debt collectors stressful¹. Some of our team members have experienced this as well, so we know how you feel.

Let’s look into how you can handle this situation with MIL Collections Debt Collectors.

Why Are Mil Collections Debt Collectors Chasing You?

Mil Collections are a debt collection agency, which means they are a business that chases unpaid debt for other businesses.

For example, if one business has a customer who has not paid their bill or invoice, they can outsource the responsibility of collecting that debt to a debt collection agency just like Mil Collections.

Lots of small and large companies do this because chasing debts can be time-consuming and reduce in-house productivity. Additionally, purchasing debt from someone else can be very profitable, which is why debt collection agencies buy billions of debt annually at rock bottom prices – at an average of 10p to £1!²

By getting Mil Collections on the case, they can concentrate on running their business while their debt is collected. Most debt collection agencies charge a fee for their service or take a commission when the debt starts to be repaid.

If you have received a letter from Mil Collections requesting payment, it is likely that you owe money to a business that Mil Collections works for.

But there could have been a mistake. More on this later.

» TAKE ACTION NOW: Fill out the short debt form

Get the Debt Collectors to Prove the Debt

The initial letter you received from Mil Collections stating you need to cough up the money is what the industry classifies as a Letter Before Action (LBA). The letter tells you to pay or there will be a Mil Collections CCJ issued.

This means a court could give enforcement officers the right to repossess your items or even your home.

Sounds scary? It is serious, but these letters are there to scare you into paying, especially if you do not know your legal rights.

A CCJ can only be issued if Mil Collections can prove to you that you owe the debt. So before you go looking for your chequebook, you should be requesting proof of the debt. From our experience, too many people don’t go through the debt verification process and pay a debt that they weren’t necessarily legally obligated to pay.

Proof of the debt is usually an agreement between the company that Mil Collections are working for and yourself, such as a signed utility contract or tenancy contract.

If Mil Collections cannot prove the debt, you won’t have to pay.

Lots of people do not realise this and pay instantly out of fear. But there is a chance that Mil Collections and their client cannot prove the debt because they don’t have significant proof anymore.

How to Write a Prove the Debt Letter?

To make things even easier, prove the debt letters have already been made for you online. You can choose from many effective templates and add some of your personal details to make them relevant to your situation and the LBA from Mil Collections.

Prove the debt letter templates are widely available online.

But if you want to write your own letter, you should remember to include:

• Your name and the date
• Reference numbers if applicable
• Notification that you received the LBA
• Ask for proof of the debt (do not admit to the debt even if you know about it)
• Tell them future contact without proof is considered harassment
• You will report harassment to the FCA
• Do not sign, print only

Keep a copy of the prove the debt letter just in case you do need to report Mil Collections. If they contact you again without proof, you can report them for harassment to the FCA.

Should You Pay or Ignore Them?

If this is your first contact with Mil Collections, you should in no circumstances ignore their debt letters. You actually have a number of response options to MIL Collections letters.

There are ways to get Mil Collections to stop contacting you and sometimes to not have to pay debt, but these can only be achieved by making sure you respond to Mil Collections first.

There may be times when you can ignore them in the future, and in those cases, you may even claim that Mil Collections are harassing you and take action against them.

Janine, our financial expert, explained that while debt collectors can visit your home for payments, they cannot come to your workplace, act threateningly, force payment, or discuss your finances with others. If they violate these rules, you can complain.

Can Mil Collections Take Your Home?

No – Mil Collections are a business that chase debts, but they have no powers to enforce them.

In fact, Mil Collections Ltd do not have any more legal abilities to seize money or homes than the companies they work for.

Businesses chose to use Mil Collections because they can apply time and resources to chasing debts. They do not use Mil Collections because they have special legal powers.

Mil Collections cannot:

• Take your items
• Take your vehicle
• Take your home
• Pretend they can do any of these things

They can pay you a visit, but you don’t have to talk to them if you don’t want to. Only a law enforcement team can carry out repossessions after a CCJ has been issued.

This may only happen if you ignore Mil Collections’ debt letters.

What if you can’t afford to pay?

Threats of CCJs can send you into panic mode if you cannot afford to pay the debt that Mil Collections are asking for. If they have proved the debt to you, there are solutions even if you are unemployed or a low earner.

#1: Agree on a Payment Plan

If you cannot afford to pay the debt, then you can agree on a payment plan with Mil Collections. This is not unusual as most people are not able to pay off unexpected debts out of the blue. Before you negotiate a payment plan, you must first calculate what you can afford to pay each month.

Never commit to an unreasonable and unaffordable payment plan because it can make the debt worse! Take a look at this example.

If you are in a similar situation and feel pressured when speaking to debt collectors or creditors on the phone, you should know that you can request written communication only.

Writing via letter should give you enough breathing space to seriously consider any payment plans and compare them to what you are likely to be able to afford.

We have a number of free letter templates that you can use to guide you through the writing process.

#2: Consider a Debt Solution

If you can’t afford to pay for any of the payment plans that MIL Collections have suggested, you may need to consider a debt solution. We will go through your various options below.

There are several different debt solutions available in the UK, so we 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.

You also need to be aware that these debt solutions may have an impact on your credit score and other areas of your life. Speaking to a debt charity will help guarantee that you are as well-informed as possible before starting your debt solution process.

How Can You Make a Complaint?

If you think that MIL Collections 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 MIL Collections 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, MIL Collections may be fined. You could even be owed compensation.

Know Your Rights

The best way to protect yourself against debt collectors is to know your rights and theirs. Debt collectors are entitled to do certain things, but there are others they can’t do. Please check out our related article on this and take a look at the summarized table below.

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.

MIL Collections Debt Collectors

Website:	https://www.milcollections.co.uk/
Phone number:	01872 266120 01872 266920 Monday to Friday: 8:30am – 5.30pm Saturday: 9am – 1pm Sunday: closed
Fax:	0845 3620091
Pay online:	https://www.milcollections.co.uk/pay
Mail:	MIL Collections Ltd., Palace Building, Quay Street, Truro, TR1 2HE

References

1. InDebted, Debt Collector Survey
2. Jubilee Debt, A Fresh Start After Covid-19

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

CONC 7.9 Contact with customers