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Allpay Debt Collection – Should You Really Have To Pay?

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Scott
Scott Nelson Profile Picture

Scott Nelson

Managing Director

MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.

Learn more about Scott
&
Janine
Janine Marsh Profile Picture

Janine Marsh

Financial Expert

Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.

Learn more about Janine
· Feb 6th, 2024
Could you legally write off some debt? Answer below to get started.

Total amount of debt?

This isn’t a full fact find, MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

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Allpay Debt Collection

For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.

Have you received a letter from Allpay Debt Collection and not sure what to do? Don’t worry; you’re in the right place.

We understand that this can be confusing and stressful. You may be wondering if you have to pay or if Allpay is even a real debt collector.

Every month, more than 170,000 people come to our website for help with debt problems. We’re here to guide you through this.

In this article, we’ll help you with:

  •  Figuring out who Allpay Debt Collectors are and what they do.
  •  Understanding why Allpay Debt Collectors are contacting you.
  •  Checking if the debt is real.
  •  Deciding if you need to pay the debt.
  •  Exploring ways to manage or even get rid of some debt.

Our team knows the worry and fear of being chased by debt collectors. We’ve been there ourselves. So, we understand your situation and are here to help.

Ready to learn more about Allpay Debt Collection and what your options are? Let’s get started!

Could you legally write off some debt?

There are several debt solutions in the UK, choosing the right one for you could write off some of your unaffordable debt, but the wrong one may be expensive and drawn out.

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

Why are Allpay Debt Collectors contacting you?

Debt collection is big business. There are thousands of people who are suffering at the hands of debt problems. There are various different forms of debt collectors. There are independent businesses, debt collectors who work together with the creditor to try and get the money, and you may even find sole traders who operate as debt collectors.

The debt collectors may operate in different forms, but the business model remains the same throughout. Debt collectors will buy debt from other companies, such as energy companies, banks and credit card companies.

They pay a much smaller amount for the debt than the face value, sometimes even as little as 20%. They then start to make profit when you pay back the debt and they have covered the initial cost. This is why they can be so persistent in getting the money, as if they don’t, it means they are losing money on their purchase.

Unfortunately, the consequence of this is that they often use poor practices to get their money, including bullying and harassment in some cases.

» TAKE ACTION NOW: Fill out the short debt form

How do I Verify Allpay Debt?

If you have received debt letters from Allpay Debt Collectors but aren’t sure if they’re legit, what do you do?

From my experience, the best thing to do is ask for proof that the debt is yours. I have a free ‘prove it’ letter template that you can use to help you write to Allpay and request evidence that you are liable for the debt that they are chasing.

You are under no obligation to pay for a debt that can’t be proven to be yours.

It is crucial that you respond to legitimate debt collectors quickly. Responding quickly will help you avoid any extra charges or fees. Not ignoring debt collectors also means that you are less likely to face legal action, such as a CCJ.

Do you really need to pay the debt?

If the debt is yours, you are liable for it, and the best course of action is to pay up, if you can afford to do so. If paying the debt will cause you issues with paying your other bills, such as rent or mortgage, you should contact Allpay Debt Collectors and make arrangements to pay back the debt. You may even be able to clear off the debt by making a partial repayment towards the debt.

How a debt solution could help

Some debt solutions can:

  1. Stop nasty calls from creditors
  2. Freeze interest and charges
  3. Reduce your monthly payments

A few debt solutions can even result in writing off some of your debt.

Here’s an example:


Situation

Monthly income £2,504
Monthly expenses £2,345
Total debt £32,049

Monthly debt repayments

Before £587
After £158

£429 reduction in monthly payments

If you want to learn what debt solutions are available to you, click the button below to get started.

Get Started

Allpday Debt Collectors are not bailiffs

Some debt collectors know that they seem more powerful if they pretend to be a bailiff, and they will often say this to try and get you to pay the debt. Debt collectors are not the same as bailiffs, they don’t have the same legal powers. Some debt collectors will even go as far as to say that they have plans to visit your property or even to prosecute you.

These are not true, and you should not take the threats seriously but you do have the right to make a complaint.

As they don’t have the right to visit your premises, you should inform them that they should not turn up or you will report them for breaching the FCA’s regulations.

How do I make a complaint against Allpay Debt?

If you think that Allpay Debthas 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 Allpay Debt 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, Allpay Debt may be fined. You could even be owed compensation.

Getting out of debt

It is vital that you sort out your debt problems, and get out of debt as soon as possible. If you are contacted by Allpday Debt Collectors, do not be tempted to just ignore them. Make sure you speak to them and come to a suitable arrangement to repay the debt.

Everything is solvable, but you need to deal with it before it escalates and becomes a major problem. If you sort out your debt issues, you will have peace of mind and won’t need to worry about anyone turning up at your home.

Thousands have already tackled their debt

Every day our partners, The Debt Advice Service, help people find out whether they can lower their repayments and finally tackle or write off some of their debt.

Natasha

I’d recommend this firm to anyone struggling with debt – my mind has been put to rest, all is getting sorted.

Get started

Reviews shown are for The Debt Advice Service.

How to write off some debt

You might be able to write off some of your Allpay Debt with a debt solution.

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.

Debt collection agencies don’t always act in a lawful way, regardless of the changes to the regulations and the warnings from other organisations.

In many cases, the behaviour of debt collectors has led debtors to feelings of humiliation, worry, distress and even depression. You should always attempt to pay back your debts, but this should be done in a way that suits your situation.

If you feel that the debt collection company is not treating you in the right and proper way, you can make a complaint to the Financial Ombudsman. If the debt collection company has a history of treating debtors unfairly, they may end up losing their license.

Could you legally write off some debt?

Answer below to get started.

How much debt do you have?

This isn’t a full fact find, MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

References

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

CONC 7.9 Contact with customers

The authors
Scott Nelson Profile Picture
Author
MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.
Janine Marsh Profile Picture
Debt Expert
Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.
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