Capita Returns Management Debt Collection – Should You Pay?
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Are Capita Business Services Ltd chasing you about money you have failed to pay back? Do you not have any means to pay back the money you owe? Do you not owe the debt and are wondering why Capita Business Services Ltd are contacting you? Are they saying they may take you to court to recover the debt? If these questions sound familiar, read on to find out how to deal with the debt collectors. You might not even need to pay!
It’s not your fault. Complaints to the Financial Ombudsman have risen this year from 830 to 2,006, so it’s safe to say that you’re not alone.
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Beating Debt Collectors
There are several ways to deal with Capita Returns Management and improve your finances.
Choosing the right way to tackle your debt could save you time and money, but the wrong one could cause even more harm.
It’s always best to find out about all your options from a professional before you take action.
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Who are Capita Business Services Ltd?
Capita Business Services Ltd are part of the Capita Plc group and are based in London. They provide a range of business services including debt management. They employ around 12,500 people.
Their clients include leading businesses in the utilities, telecoms and financial services sectors. They also collect Council Tax and business rates on behalf of local authorities. Each year they deal with 1.38 million households and 132,000 businesses on behalf of local authorities, collecting £5.4 billion annually. However, they do not collect debts on behalf of HMRC.
Capita Business Services Ltd are authorised and regulated by the Financial Conduct Authority. They are also authorised as to act as a Certificated Enforcement Agent by Nottingham Crown Court.
30 Berners Street, London, England, W1T 3LR
Also Known As:
Capita Business Services Ltd Limited
Capita Business Services Ltd Ltd
Capita Business Services Ltd Group
Capita Business Services Ltd Bailiffs
Capita Business Services Ltd Debt Collectors
Capita Business Services Ltd Debt Collection
Capita Business Services Ltd Agency
What are Capita Business Services Ltd contacting you for?
There is no doubt that debt problems are a major issue in society these days, hence why the debt collection business is so big. Capita Business Services Ltd are just one debt collection company, but there are many, and they come in different forms. There are debt collection businesses who operate independently, then there are those who operate together with the original creditor. Debt collection agencies will generally work on behalf of another company – the one you have the debt with.
The way these debt collectors run might be slightly different, but the premise is the same. They buy debt from the original creditor, at a lower cost than the face value. They then start their quest to get payments from the debtor, and as soon as the debtor pays, they start to make a profit. This, unfortunately, means that they don’t exactly have a lot of morals when it comes to trying to chase the money. The way they view it – you ran up the debt, so you should be paying it back. Of course, this is true, but you would expect them to see the bigger picture, and have some understanding and empathy about the financial situation debtors find themselves facing.
Is this really your debt?
You may be clueless as to where this debt came from, and in this case, it is important to dig a little deeper. Don’t just pay debt because it has turned up at your door, make sure it is yours, and it is accurate before paying. If you recognise it, you may notice that the value of the debt is higher than you remember, and this is down to charges and interest being added.
If you want confirmation of the debt you owe, you can write to Capita Business Services Ltd and ask them to send a copy of the credit agreement. You won’t be under any obligation to pay the debt, if they cannot provide this for you.
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What if you can pay, but don’t want to?
If the debt belongs to you, and you can afford to pay it, it is best to do so, and the sooner the better. If you do not have the funds, or if paying it will mean your other bills will be unpaid, you should speak to Capita Business Services Ltd and reach an arrangement to pay it back. Alternatively, there may be the option of making a partial payment to clear off the debt.
Are debt collectors affecting your life?
Debt collectors will, unfortunately, use a range of underhand tactics to try and get you to pay your debt. In some cases, these will include pressurising you into paying, and even bullying. The pressurising may include a high number of phone calls, or insisting you pay it, whether you can afford to or not.
If you are being chased by debt collectors, it can be quite distressing, and can cause you a great deal of stress. Unfortunately, some debtors will even feel like they can’t handle the pressure, and will, in some cases, contemplate suicide. There have been many concerns raised over the years about the behaviour of debt collectors and how these can have a detrimental effect on the lives of borrowers. It has been found that debtors have suffered from humiliation and have felt like there was no way to turn. The debt support trust found that 50% of people who have debt, will think about suicide. The government were asked to step and deal with the situation, which was escalating by this point. The government took steps to deal with the situation of irresponsible lending and intimidation by debt collectors, and fortunately, this made a difference to the debt situation.
Capita Business Services Ltd and the law
The Office for Fair Trading (OFT, 2012) decided to put a set of guidelines in place, which were relevant to the debt collection industry. The summary of these are that Capita Business Services Ltd should:
- Ensure they treat debtors fairly, and without harassing or bullying them into paying up.
- Be transparent and ensure all information is clear, concise and transparent
- Show consideration towards debtors, taking their circumstances into account.
- Act proportionately based on the debtors situation.
If you feel that you are being harassed by Capita Business Services Ltd, and they are trying to harass or bully you into paying, you may be in a position to report them to the OFT. In this case, they may have their license removed.
There are debt collectors who will go as far as to say that they are calling from a separate company, such as an independent debt collectors, when they are actually a part of the original creditor you have the debt with. As this is deceit, it goes against the legislation.
Do you know how Capita Business Services Ltd operate?
If you have never dealt with debt collectors before, you may not know how they operate, or how to manage the contact you receive from them. These are some points to be aware of when dealing with debt collection companies.
They may receive a bonus
It is highly likely that, in most cases, the agents from Capita Business Services Ltd who call you will receive a bonus based on the money they collect. They may receive a bonus daily, monthly or it could even be an hourly bonus, but this will explain why they will be so persistent about getting the payments. The last thing they want to do is get off the phone without a payment, and have to answer questions about why they didn’t manage to get you to pay up. They also don’t want to lose out on their bonus!
You need to try and deal with debt collectors in the right way by standing up to them. The threats by Capita Business Services Ltd are usually empty, so don’t worry about what they say. You have a responsibility to pay the debt, but you should never do this if it will leave you in a worse situation financially.
There may be automated call technology in place
There is no doubt that there can be a lot of temptation just to ignore the calls you receive from debt collectors like Capita Business Services Ltd, but you may find that there is automated call technology in place, which will stop you from being able to ignore them. If you are receiving calls one after the other, it is highly likely that there is call technology being used by the debt collector. This is an act of harassment, and you would be able to make a complaint.
If you wish to make a complaint, you should keep a note of the calls you have received, including times and nature of the call. This is a breach of the OFT guidelines, and you have the right to tell the agent that you intend to report them to the Financial Ombudsman for their behaviour.
The attitude change
You may find that the agent you speak to from Capita Business Services Ltd will change their attitude when they understand you can’t pay the debt. They will usually start the conversation by being friendly and polite, but this can easily take a turn for the worse when they don’t get the response they are expecting. This doesn’t mean you should just take this though. You are under no obligation to put up with any harassment or bullying behaviour, such as this. They want to make you feel bad, to the point where you will pay the debt, whether you can pay it or not. You should not let them get you to you, and you should certainly not pay the debt if you can’t afford it.
Have they discussed your debt with a third party?
In cases were you fail to answer the calls from Capita Business Services Ltd, they may decide to take it one step further by contacting a family member of colleague to try and get hold of you. They are not permitted to do this, and if they do, it is illegal behaviour. Discussing your debt with other people is not only a breach of the OFT guidelines, but privacy laws too.
You can speak to the Financial Ombudsman about this behaviour on 0800 023 4567 or 0300 123 9123
Are they telling you lies?
If they try every trick in the book to get you to pay the debt, but you fail to pay it, they may use other forms of leverage. This might include lying to you by pretending they speaking to you from court, or that they are a bailiff who plan to visit your home and take some of your possessions. They could even stoop as far as to say they will prosecute you for the debt.
No matter what they say, you should never allow them to visit your home, and if they do this, and you feel threatened, you can contact the police and let them take care of it for you.
Standing up to debt collectors
Some debt collectors, such as Capita Business Services Ltd will stop at nothing to get their payment, and their behaviour may cause mental health problems, and in some cases, even suicide. It is by no means easy to stand up to Capita Business Services Ltd, but if you can find the strength, you will be able to deal with them in the most appropriate way. It is important to get out of debt, but you should do so in a way which ensures the process is as painless as possible. No matter how bad your debt problems are, there are always ways to get the help you need.
Free debt help and advice
If you are looking for debt help, there are many organisations out there, but only some of these will be able to provide you with free one-to-one support. There are also commercial debt management companies, but it is best to go to the free organisations in the first instance. These are a few of the organisations you may want to try for your debt help and advice.
- Citizens Advice Bureau (CAB) – provide help and advice in getting out of debt. They have skilled staff who are trained on providing debt advice, as well as support with a range of other day to day issues.
- Christians Against Poverty (CAP) offer free debt help for those who need it
- StepChange provides free online debt advice and help people deal with their debt issues
You may be able to write off your debt
There is also the option of writing off a chunk of your debt, when you enter into an Individual Voluntary Arrangement (IVA). As a formal agreement you reach with the debt collectors, you have the option to pay off your debt in a one-off lump sum, or you may choose to pay in monthly instalments. Any remaining debt will be written off within around five years. You should think carefully before signing up to an IVA, as you may struggle to gain access to credit in the future. You should use an insolvency practitioner for this process.
Another option to consider is a Debt Relief Order (DRO). You would only be eligible for this if you have £75 or less remaining each month, after you have paid your bills. You would also not be eligible if you have assets over £2,000 or you own your own home.
The Final Word
Although there have been some positive moves to protect debtors, including changes to government guidelines and legislation, there are still debt collection agencies who fail to adhere to the law. The treatment of some debt collectors is such that they leave debtors feeling ashamed, bullied and even to the point where they consider suicide. You can fight back against debt collection agencies. If you can’t pay right away, make sure you don’t, if it will leave you in a worse position. You should arrange to pay it in instalments, if this is the best option for you. It is entirely possible to stop the bullying behaviour of debt collectors. You can contact the Financial Ombudsman who will take care of the situation on your behalf. They may even lose their licence.