Clydesdale Financial Services Debt – Do You Have to Pay?

When a surprise letter from Clydesdale Partner Finance arrives, it can be confusing and worrying. You’re not alone! Every month, over 170,000 people seek advice on debt solutions from our website, just like you are doing now.

In this article, we will help you understand:

• Who Clydesdale Financial Services are.
• Why they might be contacting you.
• How to check if the debt is really yours.
• What to do if you can’t pay the debt.
• Ways to handle or even write off your debt.

Many of us have been in your shoes, dealing with debt collectors such as Clydesdale Financial Services.

We understand the fear you might be feeling. After all, nearly half of individuals who deal with debt collection agencies have experienced harassment or aggression¹.

Don’t worry; this article is here to guide you, providing clear steps on how to manage this situation. So, take a deep breath, and let’s find a solution together.

Why is Clydesdale Financial Services Contacting Me?   

Have you taken out a loan or credit card with Barclays in the past that you’ve missed payments on? Chances are, you’re now receiving letters or calls from Clydesdale Financial Services because they are trying to recover the debt owed.

You see, debt collection agencies buy billions of debt annually at rock bottom prices – at an average of 10p to £1!²

If you don’t remember taking out a loan or credit card and you’re worried about whether or not you have to pay what they are asking, I’ll cover how to handle this later.

Typical Debt Collection Process

As mentioned above, it’s common for debt collection agencies to call or send letters to request payment. This is part of the first stage of the debt collector timeline.

Here’s a table that explains each stage and action involved in this process. For more information, be sure to check out our specialized guide.

Is it Wise to Ignore a Debt Collector?

I 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.

The longer you ignore letters from a financial institution or debt collector, the worse it is likely to get. The unpaid loan could be accruing interest and the longer an unpaid loan sits on your credit file, the more it negatively affects your credit score.

If you can’t afford to pay the money owed, or you dispute that you owe them money, it’s still best to get in touch with Clydesdale Financial Services.

Don’t admit to owing any money initially, but open up a dialogue with them to show you are willing to cooperate. This will usually stop further action being taken and if you explain your circumstances, they may be able to freeze interest.

» TAKE ACTION NOW: Fill out the short debt form

What if I Don’t Believe the Debt is Legitimate?

If you’re unsure whether the debt claimed is legitimate, there are a few ways to check before agreeing to any payments:

• Check your credit score: you should see either “Clydesdale Financial Services” or “Barclays Partner Finance” listed on your report.
• Ask Clydesdale to send proof: they should send you the original copy of your signed loan or credit agreement.
• Check the date of the loan: has it been six years since you made a payment? It may be a statute-barred debt. Find out more about that here.

If you do all these checks, you should be fairly certain whether or not you owe the debt. If you still dispute it, you can contact Clydesdale and show them evidence that you don’t owe the debt and ask for it to be resolved.

You may also want to query any additional charges that have been added. Admin fees and other charges can only be added if they’re in line with your original credit agreement, but sometimes they’re added in error!

If you are in a similar situation, I recommend speaking to a debt charity. They will be able to take a thorough look at your circumstances and advise you on your next steps.

I ahv linked a few groups at the bottom of this page who offer these services for free.

What Legal Action Can Clydesdale Financial Services Take if I Don’t Pay Back the Loan?

If you make no attempt to pay back the debt, the Clydesdale could take you to court.

Before that though, they will make reasonable attempts to contact you to resolve the unpaid loan. Also, you’ll receive several documents before legal action is taken including a default notice, letter of claim, and a claim pack.

You won’t be taken to court before you’ve received all of these documents. And at each stage, you’ll be given options to settle the debt before legal action is taken. 

Will I Have to Go to Court?

Clydesdale Financial Services can file for a County Court Judgement which will legally compel you to pay the debt in question.

This is usually in monthly payments but can also be a full lump sum.

If this is filed, you’ll be required to attend the hearing you hear the claim and agree to the verdict given.

Attachment of Earnings Order

If you don’t pay the debt back after a county court judgement is issued, Clydesdale can apply for an Attachment of Earnings Order which will take monthly installments directly from your wages each month.

What if I Can’t Afford to Pay Clydesdale Financial Services Debt?

Circumstances change, and you may owe the debt but cannot afford to pay it without putting yourself in more financial difficulties or financial distress. If this is the case, you’ve got options available:

1. Talk through your options with Clydesdale

Get in touch with Clydesdale and explain your financial situation. Let them know your circumstances have changed and you cannot afford to pay the debt.

They will be able to let you know if there are any options available for you such as:

• Freezing the interest
• Giving a reduced monthly payment
• Taking a payment holiday to help you get back on your feet
• Offering a final, reduced full settlement

Make sure you know exactly what you can afford before talking to Clydesdale so you don’t get stuck with a solution you can’t afford.

If you can’t come to an affordable agreement for repayment, tell them you need more time to explore your debt management options and will be in touch with your decision.

Different Debt Management Options

Here are some of the most popular solutions for dealing with debt you can’t afford:

Snowball Method

If you have multiple debts with different lenders, the snowball method helps prioritise which debt to focus on first.

This is a great option if you have enough money each month to put toward debt, but you’re not sure how to allocate your money.

Write-off debts

In very rare cases, you can ask your lender to write off the debt. This is usually done if someone is suffering from a terminal illness.

Get a refund on your Loan

If you have proof that your lender did something wrong (such as lending you money they knew you couldn’t afford), you could get a refund on your loan.

Follow my free letter template to write to your creditor and express your concerns.

Debt Solutions

If you have tried the above options but got nowhere, or if you are experiencing significant issues repaying your unsecured debts, you may wish to consider a more formal debt solution.

There are several different debt solution options available in the UK, so I recommend speaking to a debt charity for some free debt advice. Their advisors will be able to walk you through your options in detail and help you find the best solution for you.

One thing that you may need to talk to your advisor about is the impact that these solutions will have on your credit score. Debt solutions will all be visible on your credit file for 6 years, and this will flag you as a ‘high-risk customer’ – someone who is likely to have trouble paying their credit bills.

However, they will no longer be visible after 6 years, and you should find it easier to get credit again. You could even use a credit product specifically for those with bad credit histories.

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.

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How do I Complain About Clydesdale Financial Services?

If you think that Clydesdale Financial 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 Clydesdale Financial directly 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.

The Clydesdale Financial Services complaints process is not clearly available, so keep in mind that you may need to address this first complaint to Barclays.

You can make any secondary complaint to the Financial Ombudsman Service (FOS). They will investigate and, if your complaint is upheld, Clydesdale Financial may be fined. You could even be owed compensation.

Barclays Partner Finance Contact Details

Still Not Sure How to Deal with Clydesdale Financial Services Debt?

If you want to explore the different options and figure out which one is best for your circumstances, head to my full guide on getting out of debt.

Alternatively, you can use my Debt Write Off Calculator to see if you are eligible to write off your loan.

References

1. Indebted Debt Collection Survey
2. Jubilee Debt Campaign