You Might Not Have to Pay CDS Debt Collectors!
Are you being hassled by CDS Debt Collectors? Do you owe money you are unable to repay? Are you being asked to repay debts you don’t owe? Are you being threatened about being taken to court? If any of these questions relate to you, this article is designed to help you. You might not need to pay them back!
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.
Deal with your debt today and feel better tomorrow.
Who are CDS Debt Collectors?
Whilst CDS are based in Leicester, the work that they do is throughout the entire world. In fact, their debt collection service is available in over 14 different languages. CDS, or Corporate Debt Solutions as their full name states are dedicated to working with their clients in order to recover corporate debt. This means that they need to take a particular approach to the way that they handle debt and how it is collected.
Don’t worry, here’s what to do
You could get rid of debt collectors by writing off your debt. I’ve put together a 4 question debt calculator which will tell you if you’re eligible:
Are CDS Debt Collectors Legit?
CDS have been nominated for a number of industry led awards during their time of operation, which may lead you to believe that they are a fully legit company. However, as with any debt collection agency, it may not be in your best interests to make any requested payments straight-away, instead holding off agreeing to a payment plan or one-off payment.
See my most popular post on how to get a refund.
What does CDS Debt Collectors Do?
As we have mentioned, CDS is a company that deals with corporate debt, which means that they do not work with consumers. This means that they work with a different variety of clients and they also offer a variety of services at the same time too. They do, however, collect and manage debt, much like any other companies out there.
What does CDS Debt Collection Process look like?
There is little information online to cover the debt collection process for CDS, and there is no mention of secure payments or how to arrange payment plans. Therefore, it is hard to see what their debt collection process may look like. However, chances are that it is similar to other debt collection processes.
Why you are being contacted by CDS Debt Collectors?
Make no mistake – the debt collection business is huge. Debt collectors like CDS Debt Collectors come in several forms; many debt collection agencies are independent businesses; some may also be a business arm of a creditor such as a credit card company (sometimes hiding their real identity – see below); there are even individual sole trader debt collectors.
Independent debt collection agencies and sole trader debt collectors business model relies on purchasing debt at a fraction of its face value, possibly for as little as 20% of the face value, and making a profit by collecting all or a proportion of the debt. There are few morals involved; as far as they are concerned it is you who ran up the debt and you who is responsible for repaying it. They care nothing about you and your personal circumstances. Simply put, they tend not to be nice people. The Office for Fair Trading (OFT, 2010) acknowledged that such poor practices “appear to be widespread”.
Find your best debt solution (in 1 minute!)
Is all this information starting to feel overwhelming? Don’t panic! I’ve put together a 4 question debt calculator so you can quickly and easily find the best solution for you. If you’re eligible for the new government scheme, you could write off up to 85% of your debt! Answer the four questions now.
Check if you really owe the money
Is the debt money you really owe? The first thing to establish is where the debt has originated and how much you really owe. It is quite likely that the original debt, if there was one, has been inflated by various charges and interest, and could be substantially more than you believe you owe.
You should write to CDS Debt Collectors and demand a copy of your original credit agreement. If they are unable to provide this you have no obligation to make any payment to them.
Follow my ‘prove it’ guide with letter templates and get them to prove that you owe the money.
Can pay but won’t pay?
If you really do owe the money, then the road of least resistance is to repay the debt if you are able to do so, but if you can’t afford to repay it, or if doing so would prevent you from servicing more important credit such as your rent or mortgage, then try to make some arrangement with CDS Debt Collectors, perhaps offering them a partial repayment.
How debt collectors can ruin your life
It isn’t unusual for debt collectors to employ questionable tactics that may or may not fall foul of the law. This might include pressuring and bullying threats, frequent phone calls sometimes made to your workplace and empty threats.
Being pursued by CDS Debt Collectors could have a devastating effect on your life, leading to emotional distress, mental illness, and even suicide. According to the debt support trust, almost half of people who struggle with debt at some point consider suicide, and it was recently reported that a coroner raised concerns over debt-collection agency’s practices following the suicide of a debt-ridden courier. In their report into mental health and the credit industry (Walker et al, 2012) researchers from Brighton University concluded: “Debt clients frequently feel humiliated, disconnected and entrapped, with the process of debt collection having a clear impact on people’s mental health”. They called upon the government to tackle the problem of irresponsible lending and intimidating collection tactics.
CDS Debt Collectors and the law
The Office for Fair Trading (OFT, 2012) has published a set of guidelines for the debt collection business. To summarise these, CDS Debt Collectors should:
- Treat debtors fairly and not use aggressive practices, coercion, deceit, or be oppressive, unfair, or improper
- Be transparent and provide clear information that is not confusing or misleading
- Be considerate towards debtors experiencing difficulty
- Act proportionately taking into account debtors’ circumstances.
If you are being intimidated by CDS Debt Collectors who are not abiding by these guidelines, then you have a good case for reporting them to the OFT which has the power to remove their license.
To make a complaint about CDS Debt Collectors, you can use this online complaint form.
Some debt collectors pretend to be an external agency when in fact they are a business arm of the company you owe money. That is a clear case of deceit, though they are likely to claim that this information appears in the small print.
Understanding how CDS Debt Collectors operates
Understanding how debt collection agencies operate can help you defend yourself against them.
They are on a bonus
The CDS Debt Collectors agents who phone you are likely highly incentivised and are expected to collect a specified minimum amount of money per hour. Usually, there are daily and monthly bonuses and each collection they make contribute to that bonus. Hence, they will do what they can to collect some money rather than record a “No Payment” call, including making intimidating and threatening behaviour.
The lesson here is if you are able to be strong and stand up to threats from CDS Debt Collectors, knowing that their threats are empty, you can to some extent turn the tables. Keep them talking but just don’t pay. You will still owe the money, but at least you won’t have to pay that day.
Automated call technology
You might be tempted to simply not answer calls from CDS Debt Collectors, but when this happens agencies often employ automated call technology that will attempt to phone you say every half hour until you do eventually answer. Sometimes if you do pick up the call is silent; the calls are simply being made to intimidate you.
If this happens to you make a note the frequency of the calls. Such behaviour on the part of the debt collectors is in clear breach of the OFT guidelines. Tell the agent that you will be reporting them to the Financial Ombudsman.
The best way to contact the Financial Ombudsman is by phone on 0800 023 4567 or 0300 123 9123
Bad cop, good cop
Bad cop, good cop is a tactic frequently employed, and often is highly effective. When subject to such an approach you are likely to be subject to relentless calls some of which are abusive and harassing, but with the occasional polite and friendly enquiry. This change in attitude can happen in a single phone call where the agent starts off politely but should you fail to make a payment their behaviour becomes abusive. Nor is it just relentless phone calls. Frequent threatening and sometimes sinister letters are another common practice. The total process is designed to eventually wear you down, to break your will so that eventually you will make a payment.
It is difficult to stand up to such behaviour, which is exactly why they use it. But again, you should try to stay strong if you possibly can. Report it to the OFT using this online complaint form.
Embarrassing you by talking to third parties
If someone apart from you answers the call then agents frequently attempt to embarrass you by discussing your debt and financial problems with whoever answers the call. This could be a family member at your home, or it could be someone at your workplace. This is certainly illegal behaviour and breaches not only OFT guidelines, but also other privacy laws.
Again, such behaviour should be reported to the Financial Ombudsman on 0800 023 4567 or 0300 123 9123
Deceit and lies
If everything else fails some debt collectors feel they are immune from the law and will apply some very nasty forms of leverage. They might pretend to be calling from the court, that they are a bailiff and will be visiting your home to remove your possessions, possibly even threatening you with criminal prosecution.
Never give them permission to visit you and if they do then never let them into your home and if you feel physically threatened then don’t hesitate to call the police.
Don’t let them wear you down
As we have seen, debt collectors such as CDS Debt Collectors are relentless and their behaviour could be responsible for mental ill-health and even suicide. Standing up to CDS Debt Collectors requires a degree of strength and courage few people possess. But there is help out there. Ultimately you need to get out of debt, but you need to do so in a controlled manner that will minimise your pain and distress. Ultimately all debt problems are solvable.
Getting help with debt
There are various kinds of help with debt available: there are not-for-profit agencies who exist to provide one-to-one help for you, and there are commercial debt management companies whose aim is to make money out of you. The former should be your first port of call. Some of the important agencies include:
- Citizens Advice Bureau (CAB) provides extensive help with debt and should help you stop debt collectors contacting you if you are able to show you are seeking help and are trying to repay your debts.
- Christians Against Poverty (CAP) provide free debt help.
- StepChange provides free online debt advice helping people take charge of their debt.
Writing off your debt entirely
It is possible to write off your debt entirely through an Individual Voluntary Arrangement (IVA). This is a formal agreement to pay the debt collectors an amount you can afford as a one-off sum or as monthly payments and the rest of the debt will be written off after a defined period, usually five years. This must be carried out by an insolvency practitioner.
I’ve put together a 4 question debt calculator so you can quickly and easily find the best solution for you. If you’re eligible for the new government scheme, you could write off up to 85% of your debt! Answer the four questions now.
Despite warnings from professional bodies, government guidelines, and other measures the behaviour of many debt collecting agencies is atrocious, leading vulnerable debtors into mental illness and even suicide. However, it is possible to fight back, especially with some help from the agencies mentioned in this article. While it’s not as simple as just refusing to pay, you can reduce the amount you must repay and spread your repayments over a period you are comfortable with. Certainly, you can stop their bullying and by reporting them to the Financial Ombudsman they may even lose their licence.
There is not much information on the CDS page that can help you to understand how they approach debt collection and work with their clients and debtors. However, it is important to remember that they work with corporate debt, which is an entirely seperate part of debt management to any other approaches that can be taken.