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Capita Returns Management Debt Collection – Should You 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
· Jan 31st, 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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Capita Returns 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.

Receiving a letter from Capita Returns Management about debt collection can be a surprise. You might be confused about where this debt has come from and whether you should pay. If you’re feeling this way, don’t worry – this is the right place for you to get answers.

Every month, over 170,000 people come to our website for guidance on their debt problems so you’re not alone. We understand how you feel and are here to help.

In this article, we’re going to explain:

  • How to check if the debt is really yours.
  • What you can do if you don’t want to pay or can’t afford to.
  • How to deal with Capita Returns Management.
  • How to set up a payment plan or even get rid of your debt.

We understand how confusing and scary getting a debt collection letter can be. After all, nearly half of individuals who deal with debt collection agencies have experienced harassment or aggression1.

Some of our team members have been in your shoes. With our experience, we’ll help you learn how to deal with Capita Returns Management.

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.

What are Capita Business Services Ltd contacting you for?

The average unsecured debt amount has increased by 27% year-on-year (to £16,174)2. So, 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 billions of debt annually at rock bottom prices – at an average of 10p to £1! 3. 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.

Your Rights with Debt Collectors

Capita Business Services Ltd and other debt collection agencies will try to intimidate you to make you pay. While this is common, it’s crucial to keep in mind that they are now allowed to harass you.

Here’s a table that explains what debt collectors can and can’t do. If you want to learn more about your rights or require further advice, please read our complete guide.

Debt Collectors Can But They Can’t
Contact you by phone or mail. Call you after 9pm or before 8am.
Conduct home visits (on rare occasions) and knock on your door. Forbily enter your home, or stay if you ask them to leave.
Threaten to take you to court by suing you for payment on a debt. Harrass you, including threats of violence, repeated calls and visits, or abusive language.
Negotiate a debt settlement. Tip: make sure to get this new arrangement in writing. Visit your workplace.
Access your bank account, but only after a court judgment has been made. Take anything from your home or threaten to do so.
Sell your debt. Speak to other people about your debt without your permission.
Contact you frequently. Keep doing so if you request that they reduce communications.

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.

» TAKE ACTION NOW: Fill out the short debt form

If you recognise the debt, you may notice that its value 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.

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 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.

What if I can’t afford to pay?

If you can’t afford to pay, or know that paying off your debts would put you in extreme financial hardship, you might want to consider a debt solution. Many debt solutions also make it impossible for Capita Returns to contact you.

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.

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.

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Can I write off my debt without a debt solution?

If you don’t think that a debt solution is right for you – or if you are ineligible for one – what do you do?

From my experience, you might be able to negotiate with Capita Returns’ debt collectors and get an alternative payment plan sorted.

Negotiation often works in these circumstances for two reasons:

  1. Capita Returns didn’t pay 100% of the value of the debt when they bought it – debts are bought for much less than they are worth. This means that Capita Returns don’t need to recover all of your debt to make a profit.
  2. Legal action is expensive and can quickly eat into any potential profit that Capita Returns would have made on your case. Getting some money off you is arguably better for them than spending lots of money to compel you to pay.

This all means that you can negotiate a reduced-cost repayment plan, or even lower your outstanding debt balance. I have a free final settlement letter template that you can use if you need some guidance – offering a one-off lump sum could appease Capita Returns so they stop chasing you.

Keep in mind that your credit score might be affected if your settlement offer is accepted. This is because your account will be marked as ‘unsatisfied’ on your credit file which will most likely make you look like a potentially high-risk customer.

How do I make a complaint against Capita Returns?

Janine, our financial expert, explained that while debt collectors can visit your home for payments, they cannot come to your workplace, act threateningly, force payment, or discuss your finances with others. If they violate these rules, you can complain.

Make your first complaint to Capita Returns 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, Capita Returns may be fined. You could even be owed compensation.

Capita Business Services Ltd Contact Details

Phone +44 (0) 20 7799 1525
Website: https://www.capita.com/

FAQs

What will the debt collectors do if I ignore them?
If you ignore contact from Capita Business Services Ltd, they may resort to sending debt collectors to your door. In some cases, they may even apply to get a CCJ against you, and this will show up on your credit report, if it is successful. It is best not to ignore debt collectors, no matter what your situation may be.
Will Capita Business Services Ltd take you to court?
Capita Business Services Ltd may take you to court if you have failed to contact them and arranged to pay back the debt. If they do take you to court, you will receive a County Court Judgement letter. This will affect your ability to get credit in the future.
Will you be sent to jail for debt collections?
You will not end up being sent to jail because of the debt you have with debt collectors
Can I ignore a CCJ?
You may end up with bailiffs at your door if you just ignore a CCJ. It is always best to acknowledge and deal with your CCJ, taking the appropriate steps to deal with it.
Will Capita Business Services Ltd be able to issue a warrant?
Capita Business Services Ltd are not in a position to be able to issue you with a warrant, the most they can do in this situation is to request that you are sent a CCJ. If this is successful, they may end up sending bailiffs to your door, to try and recover goods to cover the debt.
Are Capita Business Services Ltd also know as bailiffs?
Capita Business Services Ltd are not bailiffs, they are debt collectors. However, they have the right to request a CCJ, which means you could end up with bailiffs being sent to your property to try and get your goods and recover the debt. They will not just do this without warning though.
Will Capita Business Services Ltd end up at your house?
Capita Business Services Ltd could send agents to your home, but they have no legal rights if they do this. This means you could ask them to leave, and they would need to do so. They can get a CCJ against you though, and this means bailiffs can come to your home. They will have a legal right to enter your property.
Will Capita Business Services Ltd be able to force entry?
Capita Business Services Ltd may send people to your home, but as they don’t have legal powers, you can send them away, and there’s nothing they can do. If you have ended up with a CCJ though, you may have bailiffs at your door.
Will Capita Business Services Ltd stop contacting you?
Capita Business Services Ltd will not stop chasing you for the debt. They will exhaust every possible avenue, including bombarding you with calls and text messages. They have the right to chase you for up to six years.
Will a debt become too old to collect?
According to the Limitation Act 1980, a debt can be too old to collect, as there is a maximum time of 6 years to chase the debt. This is from the last payment, or the last time you discussed the debt. This is unless you have a CCJ.
How long will they be able to chase you for the debt?
They may chase the debt for up to six years, unless you have a CCJ, in which case there is no limits on the length of time they can chase you for the unpaid debt.
Can the debts ever written off?
According to the Limitation Act 1980, you may be able to write off the debt after 6 years.
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

  1. Indebted Debt Collection Survey
  2. StepChange Personal Debt Statistics in Scotland 2022
  3. Jubilee Debt Campaign
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.