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Arvato Financial Solutions Debt – Should You Pay?

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Scott
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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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Arvato Financial Solutions Debt Letter

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 Arvato Financial Solutions about a debt you don’t remember? You may feel confused and worried about what to do next. You’re not alone – every month, over 170,000 people visit our website for guidance on situations like yours.

This article will guide you through:

  • Understanding who Arvato Financial Solutions is.
  • Checking if the debt they say you owe is really yours.
  • Learning how to handle Arvato if you can’t afford to pay.
  • Finding out if you can stop Arvato from bothering you too much.
  • Exploring ways to pay in parts or even clear your debt.

Some of our team have faced debt collectors before, so we understand how it feels. We know it’s hard, but we’re here to help. Let’s take the first step together and learn more about Arvato Financial Solutions and your debt.

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.

Make Arvato Debt Collection Work!

So, you are holding your Arvato debt letter and starting to panic. Don’t worry! I have the perfect response already written for you!

Use my free ‘prove the debt’ letter template to write to Arvato.

If they can’t provide proof that you owe the debt, you don’t have to pay it.

Keep in mind that mistakes happen, so the debt might not even be yours! There could be a case of mistaken identity, or someone didn’t change their contact details after they moved and the debt collection agency is using the only contact information they had.

You may even be asked to pay a debt that is statute-barred.

UK Personal Debt 2021 Update:
As of April 2021, the average total debt per UK household was £61,509

(Source: The Money Charity)

Is My Debt Statute-Barred?

If it has been 6 years – or 5 years in Scotland – since you last made a payment 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 will always be enforceable.

Sometimes Arvato will try to collect an old debt! Take this example:

If you are in a similar situation and a debt collection agency is trying to collect a debt you think is too old, you can use my free letter template to write to them.

You could also contact a debt charity for some free advice. I have linked a few options at the bottom of this page.

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

Is Their Payment Plan a Good Deal?

It is not possible to say if the payment plan you have been offered is a good deal because it will depend on your exact debts and circumstances. You should always complete a thorough budget to work out what you can pay back each month before agreeing to a plan.

But debt collectors typically do not to offer the most favourable agreements. You could find a better solution by checking out our debt options page

One positive aspect of Arvato’s payment methods is they offer a range of ways to pay online. Their ‘customer interaction platform’ – if you can class debtors as customers – is designed to make keeping up with your payments easy and convenient.  

Do Avato Send Bailiffs?

» TAKE ACTION NOW: Fill out the short debt form

A bailiff is someone who has been trained to enforce orders by the courts. Arvato can only request to send bailiffs once they have taken you to court, won a court order and you have ignored a judge’s request that you pay the debt (or make arrangements to do so). Thus, Arvato could send bailiffs, but you can avoid the debt getting to this stage by not ignoring them and following our guidance below. 

You might feel like you are handing over some control when giving them attention and replying to them, but ignoring them may only make things worse. And replying could even be what stops you having to pay.

Read on!

What Really Is An Arvato Financial Solutions Debt Letter?

Debt collection companies like Arvato Financial Services will write to you to let you know you owe money.

This is the first stage of the collection process and formally known as a Letter Before Action (LBA). it informs you of an action required (to pay the debt) or face further action (county court).

The debt collection process states that Arvato must give you time to assess your options at this stage. But that doesn’t mean you can forget about it and hope they will go away.

Later, we will explain some of the ways to get out of debt and how you can discover the best way to escape your debts based on your exact circumstances. 

Ways to Write Off Your Arvato Debt

If you have some unsecured debts, you might be able to write some of them off with a debt solution.

Debt solutions can be a good idea anyway if you have debts because you can use them to help get back in control of your finances.

There are several debt solutions available in the UK, so I recommend speaking to a debt charity. There are several organisations in the UK that offer debt counselling services for free, and their advisers will be able to help you find what solution will work best for you.

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 not valuable assets, you may be able to apply for a minimal asset process bankruptcy (MAP). A MAP bankruptcy is a quicker, cheaper, and more straightforward version of sequestration so worth considering.

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.

Make a Complaint About Arvato Debt Collectors

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

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.

Arvato Financial Solutions Debt Contact Details

Website: https://www.riverty.com/
Contact form: https://www.riverty.com/en/business/support/contact-us/

Arvato Debt FAQs

Is Avarto Debt Collectors?
Yes, Arvato is a debt collector but they also offer other services.
Who owns Arvato Financial Solutions Ltd?
Arvato Financial Solutions Ltd is a company registered in Scotland. The company is part of the global Arvato network which is ultimately owned by Bertelsmann SE & Co. KGaA.
Are Arvato Financial Solutions Ltd financially regulated?
Arvato Financial Solutions Ltd is part of the Bertelsmann Group, who are regulated and authorised by the Financial Conduct Authority under registration number 708669. They are permitted to execute tasks relating to consumer credit and insurance mediation. They are also a member of the Credit Services Association. The other trading names included in the registration are Credit Solutions, Red Castle Recoveries, aFS, Assisted Probate Services, BCW, BCW Group, Arvato, Cougar Financial Services, Arvato Regulatory Services Limited, Arvato Financial Solutions, CSL, and Buchanan Clarke and Wells.
Do HMRC use Arvato Financial Solutions Ltd?
No. Arvato Financial Solutions Ltd is not a collection company working for HMRC as of 2021. You should visit the HMRC site where they list their current debt collection agencies in case you receive a debt claim by them from HMRC. They may be used by HMRC in the future.
Does Arvato Financial Solutions Ltd buy debt?
No. Arvato Financial Solutions Ltd collects debts on behalf of their clients. They do not buy debts from other creditors and businesses.
Why are Arvato contacting me?
Arvato are contacting you as a debt collector hoping to recover debt on behalf of another company. You may not have heard of them before you will have had dealings with the original creditor.
What happens if I don’t pay Arvato?
If you don’t pay them when the debt is proven to be yours and you can afford it then you will likely have debt collectors show up to your house and further escalation would take the matter to court.
Can Arvato Financial Solutions Ltd start legal proceedings?
Arvato is allowed to take you to court but they must give you time to understand your position and explore your options. Therefore, they cannot take you to court quickly. But that doesn’t mean you should put off replying to their debt claims.
Can Arvato Financial Solutions workers come to my home?
Arvato Financial Solutions can come to your home, but you can simply tell them to go away. They are not the same as law enforcement officers, also known as bailiffs. They have no right to enter your home.
Will Arvato Financial Solutions Ltd give up?
Arvato Financial Solutions will not stop chasing you for the money unless the debt is statute-barred and you inform them of this. They might not even give up if they fail to provide proof you owe the debt, but in this situation, you are not obligated to pay anything.
How long can you legally be chased for debt?
As per the Limitations Act 1980, you can only be asked to pay a debt if it is within six years of the debt originating or your last payment on the debt. However, debts that have been issued with a County Court Judgement (CCJ) in the past can be collected indefinitely.
How to contact Arvato Financial Solutions Ltd?
The best way to contact Arvato Financial Solutions is by phone on +44 (0)844 846 0800 or email using [email protected]. Phone calls are not free, but you can request a call back if you do not want to have to pay for the call. Messages can also be sent via a form on the Arvato Financial Solutions Ltd website and a team member will email you back. There is no live chat feature.
Where Do I Send My Complaints and Requests?
You should send communication preferences and data privacy complaints to Arvato Financial Solutions Limited, 24 George Square, Glasgow G2 1EG. Use a different address if told otherwise.
How do I pay Arvato Financial Solutions Ltd?
Arvato Financial Solutions Ltd set up payment plans which are then paid by card payments. You can make additional payments if you want in between your scheduled card payments.
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.