Credit Security Limited Debt – Must You Pay?

Are you concerned about a letter from Credit Security Limited about a debt? Do you question if you should pay it or worry about how to do so?

You’ve come to the right place. Each month, over 170,000 people visit our website for advice on debt matters.

In this article, we will explain:

• Who Credit Security Debt Collections are.
• How to check if the debt they say you owe is really yours.
• The steps to take if you can’t afford to pay.
• Your rights and how to keep from being chased.

Our team knows how it feels to be chased for money you may not owe, as research shows that 64% of people in the UK find dealing with debt collectors stressful¹.

We’ve been in your shoes, which is why we’re dedicated to helping you sort out your Credit Security Limited debt.

Let’s walk this path together.

Is Credit Security Debt Collections Just a Scam?

No, Credit Security Debt Collections are not a scam and have been operating since the 1960s.

They are a genuine debt collection agency and are fully regulated by the Financial Conduct Authority (FCA).

They are also a member of the Credit Services Association, which is the trade association body within the debt collection industry.

However, just because they have sent you a letter does not mean you owe them money.

» TAKE ACTION NOW: Fill out the short debt form

How Will Credit Security Debt Collections Contact You?

Credit Security Debt Collections are known to send out letters stating that you owe a debt.

These letters will often claim that if you do not pay, you will be taken to court, also known as a Letter Before Action (LBA). We will teach you how to deal with these letters further down our guide.

This debt collection agency may also contact you by phone and carry out field visits.

We know that they do carry out field visits to the homes of people in debt because their Credit Services Association listing states “field visits” as one of their services.

Note, that you never have to engage or welcome one of Credit Security Debt Collections field agents inside your home.

They are not bailiffs and do not have any legal powers to remove goods.

In fact, Credit Security has no more legal powers than the companies they work for. It is simply a process of one company outsourcing the task of chasing debt to another company.

Debt Collectors vs Bailiffs

To better understand the difference between bailiffs and debt collectors, please take a quick look at the table below:

Despite not having any additional legal powers, there are multiple reports online of people being told that Credit Security will send people around to recover the debt.

For example:

“Today I have received a letter from Credit Security Limited about the same debt but DEMANDING I pay the sum; otherwise, they will send a DEBT COLLECTOR round to pick up payment.”

If this report is also accurate, it is completely illegal and only an enforcement officer with a court order can do this! Any threats of this nature should be reported to the FCA or the Financial Ombudsman Service!

Credit Security Debt Collections Debt Letters (LBA)

If you have received a debt letter from Credit Security Debt Collections, it is likely to tell you that you owe their client money.

It will also give a date that they want to receive the money or may take legal action.

Recovering debt for other people is very profitable, as debt collection agencies buy billions of debt annually at rock bottom prices – at an average of 10p to £1!²

This means that Credit Security Debt Collections will pursue your debt relentlessly in order to make a profit.

The most important question to ask at this stage is have they provided any proof that you owe the debt?

Simply telling you that you owe money – whether you agree or think there is a mistake – is not good enough.

Credit Security Debt Collections must send proof that you owe money and the way they can only do this is by sending a copy of the signed agreement or contract.

For example, if they claim you have unpaid electricity bills, they need to provide a genuine contract between you and the energy company.

This is why we always recommend responding to debt collectors – even just to question the debt’s validity.

Credit Security Debt Collections Didn’t Send Proof…

If your LBA debt letter from Credit Security Debt Collections did not include any proof of the debt, you simply have to reply by asking for proof.

You can do this using the many templates online.

MoneyNerd offers one of the best “prove the debt” templates that you can use for free!

The important details to include in the letter are:

• State you received their letter (including any reference number you have)
• Ask them to provide proof of the debt
• State that any further communications without proof will be considered harassment
• State that you may report harassment to the FCA or the Financial Ombudsman
• Print but never sign your name (signatures may be used against you to fabricate proof)

There is a chance that after sending this letter, you will not hear back from Credit Security Debt Collections ever again.

This could be because of many reasons, but the most common ones include not being able to find the proof, or because they sent letters to multiple people with the same name or of the same address history.

This is why if you believe you have received the letter by mistake, taking action with a prove the debt letter is still necessary!

Credit Security Debt Collections Provided Proof of the Debt, What Now?

If Credit Security Debt Collections provided proof of the debt in their first or subsequent letters, there is only one way that this debt would not have to be repaid.

And that is if the debt has become statute barred.

What Is Statute Barred Debt?

Statute barred is the name for a debt that is over six years old in England and the individual owing the debt has not paid any of it off or even acknowledged the debt in those six years.

All three must apply for the debt to be considered statute barred.

Why is this important? Well, statute barred debts are not written off.

They still exist and creditors could still chase you to pay them. However, they are not likely to chase these debts because they are not enforceable in the courts.

What that means is the credit or the debt collection agency, such as Credit Security Debt Collections, cannot take you to court to make you pay.

The reason that this ruling exists was to stop the courts from becoming overwhelmed as more UK residents get into unmanageable debt and are taken to court by their creditors.

My Credit Security Debt Is Not Stature Barred

If the outstanding debt is not statute-barred, the only other option would be to face the debt and pay it.

But there are so many different ways you can get out of debt, and the right one will depend on your financial situation and how many debts you have.

Before you decide on what your next move should be, you should know about your rights and what Credit Security Debt Collections can and cannot do.

• Credit Security Debt Collections cannot contact you during unsociable hours
• Credit Security Debt Collections cannot contact you in a way you have requested them not to (note they must be able to contact you with some method)
• They cannot take unauthorised payment or discuss your debts with third parties, such as employers or family members
• Credit Security Debt Collections must not apply pressure on you to choose a debt solution, and they must give you time to decide
• They must not demand payments from statue barred debts (you can send a letter to notify them that the debt is statute barred)
• They cannot pretend that legal action will take place if it realistically will not
• And they cannot use jargon to confuse you and influence your decisions

Should You Pay Your Credit Security Debt Collections Debt?

Yes, if you can pay the debt then you should aim to do that, especially if you have the money to wipe the debt clean.

After all, paying the full amount is likely to save you more money over the long haul.

However, not everyone has the finances to pay off their debts, especially if they have large debts or have multiple debts.

This is a normal situation and Credit Security are expecting you to ask for a payment plan.

On the FAQs section of their website, they state that you can talk directly to their advisors to come up with a payment plan that is affordable to you. They even go as far to state:

“You won’t be asked to pay more than you can afford.”

And if you lose your job or are unable to meet payments:

“Please contact one of our advisors so we can assist you through this difficult period.”

So, there are lots of reasons not to panic if you owe a debt that is not affordable to pay right now.

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What If You Can’t Afford To Pay Credit Security Limited?

If you can’t afford to pay off your Credit Security debt – or know that paying would put you in financial hardship – you might need to consider a debt solution.

There are several different debt solutions available in the UK, so we recommend speaking to a debt charity as soon as possible.

Their advisors will be able to look at your finances in detail and help you work out which debt solution will work best for you.

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.

How Do You Make A Complaint About Credit Security?

As we mentioned above, if you think that Credit Security 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 Credit Security 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.

You can make any secondary complaint to the Financial Ombudsman Service (FOS).

They will investigate and, if your complaint is upheld, Credit Security may be fined. You could even be owed compensation.

Credit Security Limited Contact Information

What to Remember When Dealing with Credit Security

• Always take action!
• Send a prove the debt letter or tell them the debt is statute barred
• They have to prove the debt!
• Credit Security has no legal powers and cannot take your possessions themselves – or threaten to do so
• You can escape debt and get free help from UK debt charities
• Credit Security does not expect to receive the full payment. They claim to offer reasonable payment plans.

References

1. InDebted, Debt Collectors Survey
2. Jubilee Debt – A Frest Start After Covid-19