Credit Style and CST Law: Debt Letters and Your Rights

A debt letter can be worrying. Keep the correspondence, check the creditor and balance, and note any response deadline. Free independent debt advice is available.

This easy-to-understand guide will help you make sense of your options. Here’s what we’ll cover:

•  Understanding who Credit Style are.
•  Steps to take if you’ve received a payment demand letter.
•  How to handle phone calls from Credit Style.
•  Exploring the possibility of writing off some of your Credit Style debt.
•  What to do if you’re unsure about the debt.

If dealing with debt is affecting your wellbeing, seek support and tell the firm about any communication or accessibility needs. A debt adviser can help you decide what to do next.

But remember, you’re not alone. Let’s walk through this together and find a way forward.

What should you do if they contact you?

If your account has been passed to Credit Style, it is most likely due to the debts you owe.

Normally, your debt would have been owed to a different creditor (which is why you may not recognise their name). They act as a debt collector for other businesses, pursuing customers for payment.

Credit Style provides collection services for clients. A collection instruction does not establish that it bought your debt or paid a particular percentage for it.

If you’re in debt, then we recommend not burying your head in the sand.  Many people in debt hide the fact from their families and friends – and even themselves – often in the hope it’ll simply go away.

Unfortunately, it won’t. 

Remember, debt is nothing to be ashamed of – and you’re certainly not alone.

According to a survey conducted by Money.co.uk, more than half of UK consumers (so almost 27 million people) started the year 2020 in debt. Out of those, almost 5 million people owed in excess of £10,000.00!

» TAKE ACTION NOW: Fill out the short debt form

What if you don’t believe you owe this debt?

If you don’t believe you owe the amount being claimed, then it’s important to contact Credit Style as soon as possible and speak to one of their experienced team members.

If necessary, ask them for evidence of the debt and/or a copy of the agreement you’ve allegedly entered into with your original creditor (i.e. their client). 

Sections 77–79 of the Consumer Credit Act provide information-request rights for certain regulated credit and hire agreements. They do not cover every debt or require an original wet-ink document in every case.

A qualifying statutory request normally carries a £1 fee. Failure to comply can restrict court enforcement while the default continues, but it does not automatically cancel the balance or prohibit every request for payment. Obtain advice on whether the provision applies.

Remember, never be afraid to ask for evidence of the debt – especially if you don’t believe it’s outstanding. 

Mistakes can (and do) happen!

Will you be able to enter into a repayment plan?

Prepare a budget covering essential living costs and priority debts first. Propose only instalments you can afford, and obtain written acceptance and confirmation of any interest or action being paused. An offer alone does not guarantee agreement or stop a court claim. See related guidance.

In order to ascertain how much you might be able to repay, you should prepare a list of your income and outgoings so that you can see where your money goes each month.

This will also provide you with an indication of your ‘disposable income’ i.e. an amount which could be used to start repaying the debt.

A CCJ is a court judgment, not simply a security term added by a collector. Do not consent to judgment without understanding its effects and taking advice.

A creditor may seek enforcement if a judgment is not paid as ordered. Separate court requirements and safeguards apply.

For more information about this and enforcement agents, please see our section entitled: “If I get a County Court Judgment (CCJ) against me, how can it be enforced?”

What might they do if you don’t get back in touch with them?

We always recommend responding to debt collectors – even just to question the debt’s validity.

If you dispute the debt, explain why and ask for an itemised balance and evidence that you are liable. For recovery covered by FCA consumer-credit rules, a valid or potentially valid dispute must be investigated and recovery paused. A generic proof request does not cancel a debt, override an existing court order or extend a court deadline.

The creditor, or solicitors acting for it, may bring a court claim if entitled to do so. Only the court can issue a judgment. A claim form is not a CCJ: respond within its deadline, as judgment can be entered in default without a hearing.

Court fees, recoverable costs and interest may be claimed where legally available. Section 69 of the County Courts Act 1984 does not make 8% interest automatic on every debt; the court’s powers, existing interest and relevant exclusions must be considered.

Missed payments, defaults or a CCJ may affect your credit record where reportable. Being contacted by Credit Style does not automatically create a new adverse entry.

Credit effects depend on the account and solution. Missed or reduced payments and defaults can damage the record. A default normally remains for six years from its recorded date; a CCJ normally lasts six years unless removed after full payment within one calendar month or set aside. There is no universal six-year debt write-off or guaranteed score change.

For more details about the issue of legal proceedings, please see the section entitled: “What’s the debt recovery process?”

What Actions Can They Take?

Of course, Credit Style has the right to pursue you for debts that you owe.

The applicable rules depend on the activity. Credit Style provides collection services and is also an SRA-regulated licensed legal-services body; CST Law is its legal trading name.

Contact must be proportionate and at reasonable times. There is no general rule banning all debt-collection calls at weekends.

If you prefer not to be contacted via the phone, you can inform them of this.

State your reasonable preferences for how, when and where you are contacted, and explain any health or accessibility needs. FCA-regulated recovery must give those preferences due regard. This is not an absolute right to prevent every call or required notice.

Ask the firm to record your preferred method and explain any particular difficulties with telephone contact.

Required notices or other reasonable contact may continue. Complain with evidence if the firm fails to give due regard to your reasonable preferences.

An ordinary collector has no automatic right to enter your home. Applicable FCA rules require fair notice and reasonable arrangements for visits; the statutory Notice of Enforcement rules for bailiffs are different.

Similarly, even if a debt collection company arrives at your door, you need to be aware of the fact that they don’t have any extra-legal powers.

They cannot enter your home if you don’t allow them to and since they’re a debt collector and not a bailiff, they can’t seize any item outside your home either.

Where legally entitled, the creditor, or solicitors acting for it, may pursue court processes such as:

• Bringing a claim and asking the court to enter judgment.
• Applying for an available enforcement method after judgment; only properly authorised bailiffs may take control of goods.
• Applying for a charging order where the legal conditions are met. It is not an automatic right to sell your home.

Your Rights

Keep a record of any conduct you consider misleading, threatening or excessive. A lawful warning of possible court action is different from pretending to have powers the firm does not possess. A complaint should identify the actual words, dates and evidence.

I’ve created this simple table that explains what debt collectors can and can’t do. For more information and further advice, make sure to read our detailed guide.

Debt collectors may	Limits and protections
Contact you to seek payment	For regulated consumer credit, contact must be at reasonable times and respect reasonable requests about when, where and how you are contacted.
Ask to discuss the debt at a home visit	A collector has no bailiff powers, cannot force entry or take goods, and should leave when asked.
Explain possible court action	They must not mislead you about their powers or threaten action they cannot lawfully take.
Discuss an affordable repayment or settlement	Get agreed terms in writing and obtain free advice if you dispute the debt or cannot afford payments.
A creditor may seek a separate court enforcement order	A CCJ alone does not give a collector access to your bank account. A third-party debt order requires a separate court process.
A creditor may assign a debt	Check who owns it and who is authorised to collect; do not disclose payment details to an unverified caller.
Make proportionate follow-up contact	Harassment is prohibited. Requests about contact must be considered; necessary legal notices may still be sent.

When Can a Debt Be Disputed or Unenforceable?

If the money is owed then there aren’t usually too many ways to avoid repaying it.

For many unsecured contractual debts in England and Wales, the usual period for starting a court claim is six years from when the creditor could sue. A payment or qualifying signed written acknowledgment before expiry can restart it. A creditor’s letter alone does not restart it. Debt type, court action and jurisdiction matter; a limitation defence does not normally extinguish an England and Wales debt. See related guidance.

1. Check when the right to bring a claim arose; the original borrowing date alone is not the test.
2. Check any payment or qualifying acknowledgment and whether it occurred before the limitation period expired.
3. Check whether court proceedings were started in time or a judgment already exists.

Scotland has different prescription rules: certain debts are extinguished after five years without a relevant claim or acknowledgment, subject to the applicable rules. This is not the same as the England and Wales limitation defence. Ask an adviser to check the debt type, dates and any court action. A debt with an existing judgment, council tax liability order or enforcement warrant cannot be assessed using a simple six-years-since-last-payment rule. Tax debts also have special rules. A judgment does not disappear when its six-year credit-file entry ends, although later enforcement may require court permission.

If you dispute the debt, explain why and request an itemised balance and evidence of liability. For recovery covered by FCA consumer-credit rules, a valid or potentially valid dispute must be investigated and recovery paused. A generic proof request does not cancel a debt, override an existing judgment or extend a court deadline.

They keep calling – what should you do?

FCA consumer-credit rules apply to relevant regulated recovery. CST Law’s legal services also have a separate regulatory framework. See related guidance.

Debt collectors, cannot threaten legal action they know is unlikely to occur.

A firm must not disguise a demand as a court document or misrepresent its authority. For an ordinary civil account, bailiff enforcement requires the appropriate court process and enforcement authority.

Read the correspondence promptly and obtain advice if needed. You do not have to agree to a payment or disclose sensitive information to an unverified caller.

The firm can explain its claim and consider payment proposals, but it represents the creditor’s interests. A free debt charity can give independent advice.

You can request a different contact method, although this does not guarantee an end to every call or notice.

If you’d prefer to be contacted via a different method (for example, if you’d prefer them to send letters or email) then you should advise them of this as soon as possible. Often, of course, phone calls can be somewhat intrusive and it can sometimes be difficult to talk. 

State your reasonable preferences for how, when and where you are contacted, and explain any health or accessibility needs. FCA-regulated recovery must give those preferences due regard. This is not an absolute right to prevent every call or required notice.

UK Personal Debt 2021 Update:
As of April 2021, the average UK credit card debt was £1,928

(Source: The Money Charity)

How can you complain?

For an eligible financial-services complaint, first complain to the firm. You can normally refer it to the Financial Ombudsman Service after a final response or eight weeks without one, usually within six months of the final response. The FCA does not decide individual debt disputes, and not every creditor or type of complaint falls within the Ombudsman’s jurisdiction. For CST Law legal-service issues, check the firm’s complaints policy and applicable SRA or Legal Ombudsman route.

You can also speak to Credit Style directly to complain through these channels:

Customer telephone	03300 450 650.
Fax:	0845 638 4712
Online form:	message Credit Style here
Post:	5 Rutland Court, 161 Rutland Road, S3 9PP

How to contact Credit Style

Phone:	03300 450 650
Email:	[email protected]
Website:	https://www.creditstyle.co.uk/
Address:	Credit Style Limited, 5 Rutland Court, 161 Rutland Road, Sheffield, South Yorkshire, S3 9PP

References

1. Indebted Debt Collection Survey
2. Jubilee Debt Campaign

CONC 7.3 Treatment of customers in default or arrears (including repossessions): lenders, owners and debt collectors

CONC 7.9 Contact with customers