Have you heard from Avarto Financial Solutions Debt Collectors about an outstanding sum of money? Are you not sure what to do next? This article should help answer your questions about what to do when contacted by these debt collectors.
Complaints to the Financial Ombudsmen have risen this year from 830 to 2,006, so it’s safe to say that you’re not alone.
Who are Avarto Financial Solutions?
Arvato is a company who provide debt collection services in the UK. The company was founded in 1961 and has more than 7,500 employees in 20 countries. The company offers debt collecting and debt management services to clients throughout the UK.
Arvarto is the new name for Bunchanan Clark and Wells, and they’re doing pretty much the same, dispite the name change. Arvarto buy cheap debt that companies have been unable to collect from you and then try harder to collect to make a profit.
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Why would Avarto Financial Solutions Debt Collectors want to speak to you?
If you are wondering why Avarto Financial Solutions Debt Collectors are contacting you, it is because you owe money. It may not be to them, but often to another organisation, such as a credit card company or bank. If they are pursuing you for the debt, you should speak to them and find out more about it.
The reason they are so persistent about reaching you is simply because they have purchased the debt, and they need you to make payments – otherwise they are losing out.
How do you know if the debt is legitimate?
The first thing you need to establish is whether the debt is legitimate. You should not attempt to pay the debt if you don’t recognise the original debt. If in doubt, ask Avarto Financial Solutions Debt Collectors to provide you with the credit agreement. If they can’t do this, it is questionable whether the debt is legitimate.
How do I pay the debt?
If you establish that you owe the debt, you should make arrangements to pay it back. You should make the full payment to Avarto Financial Solutions Debt Collectors or arrange a part payment, if this is not possible. If you can’t make a partial payment, you may be able to set up a payment arrangement, where you make small payments each month until the debt is cleared.
Are debt collectors causing you stress?
Just because you owe the debt, it doesn’t give the debt collectors any right to hound you about the debt and put you under stress and pressure. If they are hassling you, including calling you at all hours of the day, or just being persistent with the calls, you may want to consider reporting them about the harassment.
The debt support trust spoke about the fact that so many people are facing debt problems, and this is even causing suicidal thoughts. Do not let debt collection agencies hound you to the point where you feel like this, they have no right to do this.
Seek support if debt collections are making your life a misery.
Avarto Financial Solutions Debt Collectors – the legalities
A set of guidelines have been published by The Office for Fair Trading (OFT, 2012) which is relevant for businesses operating within debt collection. With these in legalities in mind, Avarto Financial Solutions Debt Collectors should:
- Be honest and open with debtors, treating them fairly and being considerate.
- Ensure transparency, and that all information is clear and concise.
- Do not make debtors feel bad about their situation. Show empathy towards borrowes.
- Take the debtors situation into account when determining appropriate action.
If Avarto Financial Solutions Debt Collectors are not following these guidelines, you can contact the OFT who have the power to take their license, if they feel this is applicable.
Why not make a complaint against Avarto Financial Solutions Debt Collectors, using this online complaint form.
What are the options available to you?
It can be difficult to know what to do when debt collectors are chasing you, but regardless of your situation, you have a few choices.
If Avarto Financial Solutions Debt Collectors agents are calling you, it can be tempting to ignore them, but you should not do this, as it won’t help. Instead, you should either pay the debt or set up a repayment plan.
Avarto Financial Solutions Debt Collectors should accept your offer to make payments, even if they are not happy that you can’t pay it all back. They may ask for proof of your incomings and outgoings though.
Defer the payments
If you can’t afford to pay Avarto Financial Solutions Debt Collectors, even a partial payment, you may be able to defer the payments to a more suitable time. For example if you are starting a new job at a later date and want to make payments when you get your first payment through. The main thing is to be open and honest with the debt collection agents, instead of hiding away from your debt.
If the debt collectors are contacting you too much or being rude to you, they may be in breach of the OFT guidelines. You can report them to the Financial Ombudsman if you think they are breaking legislation.
You can reach the Financial Ombudsman by phone on 0800 023 4567 or 0300 123 9123
The behaviour of debt collection agents.
Sometimes debt collection agents will start off by being friendly, and the attitude will sour when they realise that you can’t afford to pay the debt back. They often work on bonuses, and they don’t get these if you don’t pay.
It can be challenging to deal with debt collectors and if they are making you feel stressed or upset, you can report them to the OFT using this online complaint form.
Discussing your debt with third parties
It is not unusual for debt collection agencies to think it is reasonable to speak to others about your debt if they can’t reach you, but this is illegal behaviour, which breaches both OFT guidelines, and other privacy laws.
This sort of behaviour can be reported to the Financial Ombudsman on 0800 023 4567 or 0300 123 9123
Is it normal for debt collectors to lie?
Debt collectors lying is often more common than we’d like to think. They often say they will visit debtors at home to discuss the debt, and take away their belongings to recover the money. This is not true though, and they do not have permission to do so.
If they threaten to do this, you can contact the police to let them know. Do not give them permission to enter your home.
Stress of the debt collector
It is normal to get stressed out if you are contacted by debt collectors like Avarto Financial Solutions Debt Collectors, but you should not let them wear you down.
The best course of action is to speak to them and try to reach an agreement, then you can try to forget about the debt.
Is your debt getting out of control?
If your debt feels like it is spiralling out of control, you are probably feeling stressed and under pressure, especially if debt collection companies are on your case. You can get help with your debt through debt management companies or not-for-profit organisations. It is much more advisable to use a not-for-profit organisation, and these are some of the options.
- Citizens Advice Bureau (CAB) a well-known organisation who can help you get your finances in order.
- Christians Against Poverty (CAP) free debt advice to get you back on track.
- StepChange provides free online debt advice and help people get control of their debt.
What if you can’t afford to pay the debt back
If you don’t have the means to pay back your debt, you can enter into an Individual Voluntary Arrangement (IVA). With this option, you reach an agreement to pay back some of the debt, and the rest is written off.
For more information, you can Find a local licenced IVA insolvency practitioner here.
A Debt Relief Order (DRO) is another option, but you must have less than £50 left after you have paid bills and urgent expenses each month to qualify for this.
You can only apply for a Debt Relief Order by using an authorised debt advisor. This is a list of authorised debt advisors here.
Some debt collectors are still acting in a detrimental way towards debtors, but remember that they have no right to hassle or bully you into paying the debt. If they are using these kind of tactics, you can report them and they may lose their licence.
Avarto Financial Solutions Contact Details:
Company Name: avarto Financial Solutions
Other Names: Buchanan Clark and Wells, BCW, BCW Group, Credit Solutions, Redcastle, PayRed.com and UMS (Utility Management Services)
arvato Financial Solutions
24 George Square
Phone: 0845 245 2451