CRS Debt Letters: Check the Account and Repayment Options

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. See related guidance.

In this guide, we’ll explain:

•  Who CRS Debt Collectors are and why they’re contacting you.
•  How to check if the debt they claim is yours, and what to do if it isn’t.
•  How to deal with CRS if you can’t afford to pay.
•  Your options to set up a payment plan or even clear some of your debt.
•  The rules CRS must follow and how to seek help if they’re making life hard for you.

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.

That’s why we’re here to provide helpful advice on how to handle CRS Debt Collectors and take control of your situation.

Do You Really Owe Them Money?

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.

A disputed demand can involve mistaken identity, an incorrect balance, a payment not recorded or a legal defence. An old debt is not automatically a debt you never owed.

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.

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.

Keep in mind that not all unsecured debts become statute-barred after 5 or 6 years.

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.

It is still a good idea to check that you owe the debt before you make a payment!

How do I Verify a Debt?

From our experience, the best thing to do is ask for proof that the debt is yours. We have a free ‘prove it’ letter template that you can use to help you write to CRS Debt Collectors and request evidence that you are liable for the debt that they are chasing.

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.

Respond promptly to genuine correspondence and court papers. Engagement can help resolve a dispute or affordability problem, but does not guarantee that charges or lawful action will stop.

Your Rights With Debt Collectors

Complain to the business first. If the activity falls within the Financial Ombudsman Service’s remit, you can normally escalate after a final response or eight weeks without one, usually within six months of the final response. The Ombudsman can require redress, such as compensation or correcting records; it does not fine firms or remove their authorisation.

Collectors must protect your privacy and must not unfairly disclose a debt to relatives, neighbours or an employer. They can communicate with an authorised representative or make other legally permitted disclosures. Contact must be proportionate and must not amount to harassment. An ordinary debt collector has no bailiff powers: it cannot force entry or seize your goods. You can decline a doorstep discussion and ask the visitor to leave. The creditor may still take lawful court action; authorised enforcement after judgment is a separate process.

Remember that it’s important to understand your rights when dealing with any debt collection company.

That’s why we’ve put together this table that explains what debt collectors can and can’t do. For more information, please 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.

» TAKE ACTION NOW: Fill out the short debt form

How to pay CRS

CRS offers account-management and repayment options. Check whether a proposed arrangement fits your budget and seek independent advice if unsure.

You can pay off your account in full or set up an affordable arrangement without the need to talk to anyone by logging into “www.paycrs.co.uk“.

If you’re not sure how much you can afford, you can make use of the payment calculator on the CRS website. 

You can also let CRS know that you are dealing with a debt management company by logging into “www.paycrs.co.uk“. If you want to know more about what advice there is out there, further information for impartial advice and relevant contact information is available on the CRS customer portal.  

Ask for written confirmation of payment terms, any interest concession and how changes in circumstances will be handled. A discounted settlement is not guaranteed.

Can You Write Off Your Credit Resource Solutions Debt?

Debt solutions have eligibility rules, costs and consequences. Get free independent advice before deciding whether a solution that can write off included debt is suitable.

Firstly, you may be able to negotiate with them into writing off some of your debt.

A creditor may consider a reduced full-and-final settlement, but does not have to accept it. Obtain written confirmation that the agreed payment settles the account and releases the remaining balance before paying. Do not use money needed for essential living costs or priority debts.

You can also request to freeze your interest for a set time or that you have a brief payment holiday to help get your finances in order.

A firm must consider financial difficulty fairly where the relevant rules apply, but it need not accept every settlement or instalment proposal.

If your offers are refused, keep calm and look at your next steps. You could even contact a debt charity for some advice – some suggestions are listed below.

Debt Solutions

Your second option to write off your debt is to apply for a debt solution. There are lots of debt solutions available in the UK but a few will write off some of your debt if you stick to the terms.

An IVA is a formal insolvency arrangement with creditors. It can include agreed payments or other contributions and binds creditors covered by the arrangement once approved. Fees, effects on assets and credit, and the risk of failure need to be considered with an authorised insolvency practitioner. An IVA can write off the unpaid balance of included debts on successful completion, subject to its terms. Excluded debts remain payable, and failure can leave you liable for remaining debt and further action.

There is no universal statutory requirement to owe several thousand pounds or have more than one creditor. Suitability depends on the debts, available income or assets, alternatives and the provider’s criteria. Required correspondence can still be sent during an IVA.

Scotland has different debt remedies, including protected trust deeds, the Debt Arrangement Scheme and bankruptcy. A trust deed is one option, not a compulsory replacement for an IVA; ask a Scottish debt adviser which options fit your situation. See related guidance.

In England and Wales, a Debt Relief Order may be available if qualifying debts are no more than £50,000, spare monthly income is no more than £75, assets are no more than £2,000 and any qualifying vehicle is worth no more than £4,000. Other conditions apply, including not owning your home. An approved adviser must assess eligibility. See Debt Relief Order guide.

During the usual 12-month DRO period, recovery of listed qualifying debts is restricted and you generally do not pay those debts. Ongoing bills and excluded debts still need attention. Creditors may send statements and other permitted correspondence. Included debts are normally discharged at the end of the DRO period if the order remains in force. Changes in circumstances must be reported and can affect the order; excluded debts are not written off.

Bankruptcy is the last option for many people who are struggling to pay their debts.

There is some unnecessary stigma surrounding bankruptcy so it is important to remember that it can provide a financial clean start for many people. That said, it is a serious financial situation that should not be taken lightly.

Scotland’s Minimal Asset Process is a form of bankruptcy for people meeting specific debt, income and asset conditions. It has consequences for credit and finances and should be assessed with an approved money adviser. See related guidance, related guidance.

If you are considering a debt solution, we recommend that you contact a debt charity for some advice. They will be able to guide you through the process and choose a solution that will work best for you.

CRS Contact Details

Website:	www.mycrs.co.uk
Phone number:	01422 324510
Opening hours	Check the current hours on CRS’s official customer website before calling.

Free Debt Counselling

If you are struggling to deal with your debts, we recommend seeking financial advice.

There are several organisations in the UK that offer free debt counselling and financial advice services. Their specialists will be able to advise you on your best course of action and help get you back in control of your finances.

• StepChange
• National Debtline
• Citizens Advice
• Debt Advice Foundation.

CRS may direct customers to debt-advice services. You can also contact a free independent charity directly and do not have to use a suggested referral.

If you are already dealing with a debt management company, make sure you tell CRS, so they can reflect this on your account.

UK Personal Debt 2021 Update:
Citizens Advice Bureaux in England and Wales dealt with 1,735 debt issues every day in the year to May 2021.

(Source: The Money Charity)

References

1. Indebted Debt Collection Survey

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

CONC 7.9 Contact with customers