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CARS Debt (Creditlink Account Recovery Solutions) 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 27th, 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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CARS 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.

Are you surprised by a letter from CARS Debt (Creditlink Account Recovery Solutions)? You might be wondering where this debt has come from or if you need to pay it.

Don’t worry, you’re not alone. Every month, over 170,000 people come to our website to find help with debt problems.

We understand you might be feeling worried or confused, as research shows 64% of UK adults find interactions with current debt collectors stressful1. We’re here to help with lots of experience with CARS Debt and many positive reviews from people we’ve offered guidance to.

In this article, we’ll explain:

  •  Who CARS Debt Collection is
  •  What to do if you get a scary letter from them
  •  If you can ignore a letter from CARS Debt
  •  How to stop CARS Debt from calling or texting you
  •  If CARS Debt will come to your home

We’ll also show you ways you might be able to write off some of the money you owe. Plus, we’ll tell you where to go for free debt advice. 

Let’s dive in.

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.

Intimidating CARS Debt Collection Letters

You will learn about your Cars Debt Collection debt through one of their letters.

These letters are written in a manner to scare you and make you take immediate action. Even if you know about the debt, you don’t have to pay straight away. We have a little trick for you later that puts the onus back on Cars Debt Collection and can buy you time.

» TAKE ACTION NOW: Fill out the short debt form

Ask CARS Debt Collection to Prove the Debt!

Your first move when dealing with Cars Debt Collection is to ask them to prove you owe the debt. We always recommend responding to debt collectors – even just to question the debt’s validity. Remember, you have the right to request proof of the debt. They have to prove it, or they can’t charge you.

Asking for proof of your debt has never been easier, thanks to the letter template available at MoneyNerd.

Use our free template to request proof – it might get you out of paying!

Sometimes companies make errors and try to chase debts that have already been paid. This can be very frustrating!

This also shows why it is so important to keep up to date with your records!

If you have had a letter from a debt collection agency that you know you have already paid, you still need to reply and let the company know. You can provide copies of letters confirming that your debt has been settled to help make the process quicker.

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

Can You Ignore a CARS Debt Collection Letter?

You should not ignore a letter.

Lots of debtors ignore Cars Debt Collection because they think it is a scam or because they don’t have the money to pay. This is not a smart move because Cars Debt Collection can take the debt to court if they are willing.

However, we don’t recommend that you ignore debt collectors.

What Happens If You Ignore My Debts?

If you know that you have debts, you need to do something about them.

You should not just ignore them and hope that they will go away – they won’t!

If you do not engage with CARS and refuse to pay them the debt that they can prove you owe, you may end up being taken to court.

This usually involves CARS getting a County Court Judgement (CCJ) against you. This is an order from a judge forcing you to pay. You have a month to pay the debt or start a repayment schedule that the judge has ordered.

Your CCJ will now be visible on the Register of Judgements, Orders and Fines and your credit file for 6 years. You will find it harder to get credit during this time as you will now be considered a ‘high-risk’ customer – someone who may have issues paying back their debts.

After 6 years, your CCJ is no longer visible on your credit file and can be taken off the Register.

If you pay all of your debt off within a month, you can write to the courts and ask for your CCJ to be removed from the Register of Judgements, Orders and Fines.

If you still ignore CARS and make no effort to pay them anything, they may go back to court.

This usually means that bailiffs will be authorised to enter your home and take your goods. These will then be sold at auction, and the proceeds will go towards paying off your debts.

To avoid all this, keep in regular contact with CARS and let them know if you are having financial difficulties. You may be able to negotiate a payment holiday or even a temporary interest freeze to help you get back in control of your finances.

You could also consider a debt solution.

If you ever feel like you need some help, you can talk to a debt charity. We have linked some at the bottom of this page. Their advisers will be able to look at your finances and tell you how to move forward.

There’s no shame in being indebted. In fact, StepChange found the average unsecured debt amount per client increased by 27% year-on-year to £16,1742, so you’re definitely not alone.

Learn Your CARS Debt Collection Solutions

If CARS Debt Collection have proved that you owe the debt and it’s not statute-barred, you need to pay.

If you can’t afford to pay off the debt in one go, you may be able to negotiate with them and agree on a new repayment structure. Just make sure that you don’t agree to a payment schedule that you can’t afford.

We also recommend getting any new agreement in writing from CARS before you make your first payment. This will make sure that your records are up to date and make it more difficult for CARS to argue about your payments in the future!

But sometimes that’s still not enough, and you may need to look into a debt solution.

There are several debt relief options available in the UK, so it’s a good idea to get some advice before you commit to a solution. We have linked some charities at the end of the page that offer free financial advice and debt counselling services.

How Can You Stop CARS Debt Collection Calls and Texts?

Get in touch. As well as scary debt letters, Cars Debt Collection could continue to keep in touch and apply pressure by calling you. But this might not be one call per week, it could be daily or more than once each day.

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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Reviews shown are for The Debt Advice Service.

Cars Debt Collection is not allowed to harass you for payment.

To counter their calls, you should inform Cars Debt Collection of the times you are available to speak. If they don’t keep to these preferences, they might be committing harassment again. We will soon tell you where you should complain about this situation.

Individual Voluntary Agreement (IVA) or Trust Deed

An IVA is a legally binding agreement between you and your creditors. You agree to pay a monthly sum that is shared among your creditors, and they agree not to chase you for your debts.

To qualify, you must owe several thousand pounds to more than one creditor. You also need to show that you have some disposable income available every month to cover the costs of your IVA.

Typically, your IVA will last 5 or 6 years and your remaining debts may be wiped out at the end. IVAs are unavailable in Scotland so you will need to opt for a Trust Deed. These work in the same way as an IVA – you pay an agreed sum every month, your credits don’t contact you, and your outstanding debts can be written off at the end of your agreement.

Debt Relief Order (DRO)

If you have some debts but a limited income and few assets, you may qualify for a DRO.

A DRO lasts for 12 months, and your creditors can’t contact you during this time. They also need to freeze your interest on your debts. You don’t make any payments towards your debts for this year either.

Your finances are then reassessed. Unless there has been an improvement in your financial situation, your remaining debts can be written off.

Bankruptcy or Sequestration

Bankruptcy – or sequestration in Scotland – may be your final resort if you have no realistic possibility of paying back your debts.

Bankruptcy does have a negative image, but it can let you write off some of your debts and get a financial fresh start. That said, it is a serious financial situation that should not be taken lightly.

If you are considering sequestration and have a limited income, you could look into a minimal asset process bankruptcy (MAP). These are quicker, cheaper, and more straightforward than sequestration and are a good alternative for those with few assets.

Know Your Rights

Even in the worst debt situations, you still have rights, and there are many things bailiffs can’t do. Here are some basics to keep in mind to avoid losing the upper hand.

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.

Can You Complain About CARS?

If you think that CARS have acted inappropriately, you can make a complaint.

You can also complain if you think that they have not kept to the Financial Conduct Authority’s (FCA) guidelines.

First, complain to CARS directly so that they have the opportunity to sort out the issue themselves. But if you feel that they have not taken your complaint seriously or dealt with it properly, you can escalate matters.

You can make a second complaint to the Financial Ombudsman Service (FOS). They will investigate and, if your complaint is upheld, you could be owed compensation, and CARS may be fined.

Website: https://www.carsuk.org/
Post: C.A.R.S. PO Box 6520, Basingstoke, Hampshire RG21 4UY
Phone: 0333 136 3349 – General Enquiries *
0333 136 8282 – Debit and credit card hotline
Opening hours: 08:30AM – 07:00PM  MON, TUE & THUR
08:30AM – 05:30PM  WED
08:30AM – 04:00PM  FRI
08:30AM – 12:30PM  SAT
Email: [email protected]
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 Collectors Survey.
  2. StepChange, Scotland in the Red
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.