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Arvato Financial Solutions Debt Collectors – Should You Pay? (Arvatofs email)

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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 Debt Collectors that you didn’t expect? Don’t worry. You’re not alone, and you’ve come to the right place for answers.

Every month, over 170,000 people visit our website for advice on debt issues. We understand how confusing it can be to figure out where the debt came from and whether it’s real. Sometimes, it’s hard to decide if you should pay or if you can afford to pay.

In this easy-to-read guide, we will help you understand:

  • Who Arvato Financial Solutions Debt Collectors are.
  • How to check if the debt is yours.
  • Ways to deal with Arvato, even if you can’t pay the whole debt.
  • How to stop Arvato from bothering you too much.
  • Your choices to set up payment plans or even write off some of your debt.

Our team knows what it’s like to be chased by debt collectors. We’re here to help you learn how to stop Arvato Financial Solutions from chasing you today.

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 would Arvato 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.

» TAKE ACTION NOW: Fill out the short debt form

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 Arvato 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.

Take a look at this example.

This forum user could contact a debt charity for some specific advice – I have linked some options for you at the bottom of this article. However, you are under no obligation to pay for a debt that can’t be proven to be yours. This means that this forum user won’t have to pay a penny.

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

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.

Make payments

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 Arvato 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 FCA 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 FCA 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 FCA guidelines, and other privacy laws.

This sort of behaviour can be reported to the Financial Ombudsman on 0800 023 4567 or 0300 123 9123

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.

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.

Arvato Financial Solutions Debt Collectors – the legalities

A set of guidelines have been published by the Financial Conduct Authority (FCA) which is relevant for businesses operating within debt collection. With these in legalities in mind, Arvato 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 FCA or Financial Ombudsman who have the power to take their license, if they feel this is applicable.

Why not make a complaint against Arvato Financial Solutions Debt Collectors, using this online complaint form.

What if you can’t afford to pay the debt back

If you can’t afford to pay off your debts, or know you will end up in serious financial difficulty if you do pay Arvato, you might want to consider 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.

Your rights

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.

How do I make a complaint against Arvato?

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.

Arvato Financial Solutions Contact Details

Company Name:  Arvato Financial Solutions
Other Names:  Buchanan Clark and Wells
BCW
BCW Group
Credit Solutions
Redcastle
PayRed.com
UMS (Utility Management Services)
Address: arvato Financial Solutions
24 George Square, Glasgow, G2 1EG
Phone:  0344 571 4075
Website:  www.arvatofs.com 
Email:  [email protected]

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.

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.