Are you being contacted by Credit Account Management Debt Collectors about outstanding debt? Are you being asked to repay loans that you can’t afford or don’t owe? Are Credit Account Management Debt Collectors threatening court action against you? If these issues relate to your situation, and you want to find out more about how to deal with them, this article should help give you some information on what to do next.
Who are Credit Account Management Debt Collectors?
Credit Account Management Debt Collectors is a debt collecting company in the UK who works with a range of clients across the country. The company offers a debt collection service, as well as management services.
Why are Credit Account Management Debt Collectors getting in touch with you?
The debt collection business is massive, and there are many different forms of debt collection companies, including independent businesses, sole traders, and those who operate as a part of the original creditor. Credit Account Management Debt Collectors may be contacting you and you might not be familiar with them, but that doesn’t mean you don’t need to pay back the debt.
The way the debt collection companies work is that they buy your debt from the original credit company, which is the company you took out the debt with. In most cases, they will buy this for a small fraction of the face value, in some cases, only 20%. Everything after the value of what they have paid is profit. This means that debt collection companies can make a good profit, if they get you to make repayments, which is why they are so persistent, and they will sometimes go to ‘extreme’ lengths to get you to pay up. Unfortunately, The Office for Fair Trading have acknowledged that poor practices among debt collection agencies, seem to be widespread.
Is this your debt?
The first thing to find out before you start making payments is whether or not this is your debt. If you don’t recognise the debt, or you think you have already paid it, you should get confirmation before you start making any payments. It may look higher than you remember, as there is likely to be charges and interests added onto it.
You can get confirmation about the debt by contacting Credit Account Management Debt Collectors and asking them to send a copy of the original credit agreement. If they refuse to send this, you should not make payments, as you are under no obligation to do so.
Do you need to pay?
If you owe the money, and you have confirmation of the credit agreement, you will need to pay the debt. If you do not have the funds to pay it in full, you should be able to arrange repayments through a repayment plan with Credit Account Management Debt Collectors. You should not pay if it will leave you in a position where you can’t pay your essential bills, such as your rent or mortgage. Credit Account Management Debt Collectors should be willing to come to an arrangement with you.
The effect of the debt collector
Unfortunately, in their quest to get payments, debt collectors will sometimes use tactics which can have a damaging effect on debtors. For example, they may use pressure, threats or may even employ bullying behaviour to get you to pay up!
This sort of pressure can have a huge effect on people’s live, sometimes even causing mental illness and distress. The debt support trust said that as many as half of those people who are struggling with debt issues will consider suicide at some point. This is a result of debt collection agencies putting extra pressure on those people who are already facing financial hardships. The government were called upon to take action on behalf of debtors, and this made a huge difference, although there are still major issues within the debt collection industry.
The Law and Credit Account Management Debt Collectors
The Office for Fair Trading (OFT, 2012) published some guidelines which debt collection businesses must adhere to. According to these guidelines, must adhere to the following:
- Treating debtors fairly and refraining from using any aggressive practices.
- Ensuring transparency with information, and providing clear information at all times.
- Being considerate towards debtors, and understanding of the difficulties they face.
- Acting proportionately, and taking the debtors’ circumstances into account when determining appropriate action to take to recover the debt.
If you feel that Credit Account Management Debt Collectors are intimidating you and not following the guidelines, you may want to report them to the OFT. If necessary, they may even remove their license.
If you wish to make a complaint about Credit Account Management Debt Collectors, you can do it by completing this online complaint form.
In some cases, debt collectors may say that they are an external agency when they are actually a part of the company you owe money to. As this is a breach of the regulations, you may be able to make a complaint.
How to understand Credit Account Management Debt Collectors
Are you not sure about Credit Account Management Debt Collectors and the way they operate? Here are some facts you need to know about debt collection businesses.
They receive bonuses
As debt collection businesses can often make a good profit, they can afford to pay bonuses to their agents. This can explain why agencies like Credit Account Management Debt Collectors are so persistent when trying to recover the debt. They may have daily, monthly or yearly bonuses, and if they feel to meet targets, they will likely not receive these bonuses. This is why they might go to extreme lengths to recover the payments, even threatening you to try and get the repayments. The last thing they want is to leave the conversation without recording any payment.
With this knowledge, you will be in a better position to stand up to Credit Account Management Debt Collectors. You can be rest assured that most of the threats they make are only threats, and this can allow you to turn the tables. You must pay the debt, but you don’t need to take any threats or bullying behaviour.
They often use call technology
It can be tempting to just ignore the calls from Credit Account Management Debt Collectors, but this won’t help the situation. In some cases, debt collection agencies will use automated call technology to try to get you to pick up the phone, and often this is done just to intimidate you. In some occasions, the call may even be silent when you pick up.
If the debt collection agency keeps calling you, you should take a note of the calls with a call log. They should not be calling you to the point of harassment and if they do, you can contact the OFT and let them know about the breach. You can even inform the agent that you intend to do this.
You can contact the Financial Ombudsman by phone on 0800 023 4567 or 0300 123 9123
Tactics employed by debt collectors
Dealing with debt collectors can be confusing. One minute they may seem friendly and helpful, the next they are harassing or abusing you down the phone. They usually do this when they realise you can’t make any payments, as ultimately, this is all that matters to them. The attitude change can be extremely quick, which can cause a lot of confusion. Unfortunately, this is quite common among debt collectors, and the purpose of it is to get you to the point where you get so frustrated, that you make payments, even when you can’t afford them. You should not just put up with this behaviour though, debt collectors do not have the right to abuse or harass you, just because you owe money.
This behaviour is difficult to stand up to though, so you need to stay strong. Whatever you do, don’t be forced into making payments you can’t afford, as this will put you in a worse situation. If you feel that Credit Account Management Debt Collectors are not treating you right, you can report them to the OFT using this online complaint form.
Share your details with others
If you don’t answer the phone, Credit Account Management Debt Collectors may end up discussing your debt with someone else, such as a colleague, or family member. They are not permitted to do this though, and if they do, this is illegal and it is a breach of the OFT guidelines. It also goes against privacy laws too. You can seek advice if you feel that debt collectors have not followed the correct guidelines.
If you want to report this behaviour, you can do this by contacting the Financial Ombudsman on 0800 023 4567 or 0300 123 9123
Threatening to visit your home
Some debt collectors think they don’t need to adhere to the law, and they may employ some nasty tactics to get payments from you. In some cases, they might say they are calling from court, and that they will come round to your home and take your possessions. They may also threaten criminal prosecution against you.
Debt collectors are not allowed to enter your home, and if they threaten this, you should inform them that you will not allow access. If you feel threatened, you can contact the police and let them know that you feel unsafe, and they will deal with it for you.
Standing up to debt collectors
It is important that you take control and stand up to debt collectors like Credit Account Management Debt Collectors, no matter how relentless they may be. If you let them get on top of you, you could cause damage to your mental health. It can be difficult to stand up to the behaviour of debt collectors but it is important you show courage. You need to pay your debt, but you should do this in a way that doesn’t affect your ability to pay day to day bills. Of course, it is difficult to have debt problems, but there is always a way to deal with your debt issues.
Free debt help
There are a range of ways to get help with your debt issues: there are not-for-profit agencies who offer free help and advise, and also provide one-to-one support. There are also commercial debt management companies who just want to make money from you. Of course, when you are already dealing with debt issues, you should opt for the free advice. Some of the agencies who offer a free service include:
- Citizens Advice Bureau (CAB) offer help with getting out of debt and will give you advice on dealing with debt collectors, They can also provide advice on other issues you may need help with.
- Christians Against Poverty (CAP) provide free debt help.
- StepChange provides free online debt advice helping people gain control of their finances.
How to write off your debt
There is the possibility of writing off your debt through an Individual Voluntary Arrangement (IVA). With an IVA, you enter into a formal agreement, where you pay debt collectors a set amount you can afford, either as a off sum or you can pay in monthly payments. The rest of the debt can be written off within a defined period, which is usually around five years. The IVA process must be carried out by an insolvency practitioner.
Find a local licenced IVA insolvency practitioner here.
Another option is a Debt Relief Order (DRO). This will only be available to you if you have £50 or less each month, when you have taken care of your household expenses. You must not own your home either or have assets worth over £1000.
If you wish to apply for a DRO, you will require an authorised debt advisor. You can find a list of authorised debt advisors here.
There have been many warnings from professional bodies and government guidelines have been introduced to try and ensure debt collectors abide by the rules, and treat debtors with respect. However, many still don’t adhere to the guidelines. You cannot just ignore your debt, but you should pay an amount that you can realistically afford. There is no point in making payments if it will be to the detriment of your other essential bills. If you are unhappy with the way debt collectors are treating you, you can report them to the Financial Ombudsman. In some circumstances, the debt collector may even lose their licence.