Have you taken out a loan or credit card in the past that you’re struggling to pay back now? Circumstances can easily change and falling into financial difficulty can happen to anyone. If you’re receiving letters or phone calls from Clydesdale Financial Services about debt, this guide is for you.
You’ll get all of your questions answered about how to deal with Clydesdale Financial Services Limited (also known as Barclays Partner Finance) and learn more about your debt management options and advice to help with your debt.
Who is Clydesdale Financial Services?
Clydesdale Financial Services Limited is part of Barclays Partner Finance that offers loans, credit cards, and finance to customers.
If you’ve taken out a loan in the past with Barclays, it’s often the case the Clydesdale Financial Services is what shows up on your credit report, which can be a little confusing.
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.
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, we’ll cover how to handle this later.
Is it Wise to Ignore a Debt Collector?
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.
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.
How to Contact Clydesdale Financial Services Limited
Clydesdale is the same entity as Barclays Partner Finance. So this is the company you’ll need to contact. More information on how to do that can be found here.
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? The debt could be statute-barred. 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.
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. 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:
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.
This option allows you to pay less than the minimum every month and freezes interest. It’s ideal for a short period if you have, for example, lost your job.
This solution is best if you owe over £6,000 and need to protect your house from being repossessed.
This is best if you owe less than £20,000, have barely any income and don’t own a house.
If you feel you are drowning in debt, this may be the best way to hit reset and start over. However, it isn’t a decision that should be taken lightly.
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.
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.
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 our full guide on getting out of debt.
Alternatively, you can use our Debt Write Off Calculator to see if you are eligible to write off your loan.