Crystal Finance Debt Consolidation – Complete guide & FAQs
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Have you got a loan with Crystal Specialist Finance you can’t afford? Perhaps you took the loan out some time ago but your circumstances have changed and you’ve fallen behind on repayments. If you’re being chased by Crystal Finance Debt Consolidation for unpaid debt, this guide is for you.
We’ll answer all the questions you have about Crystal Finance Limited and show you how to deal with your debt in the best way possible.
Who is Crystal Finance?
Crystal Finance (also known as Crystal Specialist Finance) is a specialist finance distributor based in Staffordshire. They offer Commercial Finance, Bridging Loans, Second Charge Loans, Development Finance and Mortgages.
They are also known for their debt consolidation services which help individuals who have been turned down by big lenders consolidate their debt into one monthly payment.
They have fairly good reviews online (3.9 out of 5) but have been called out by past clients for their high fees.
They are regulated by the FCA, AMI (mortgage association) and NACFB (finance association).
Why is Crystal Finances Contacting Me?
If you’ve used Crystal Finance to take out a loan, mortgage, or debt consolidation and have fallen behind on payments, they will be contacting you to recover the money owed.
If you’re struggling to pay back the debt, you’re not alone. In 2018, household debt totalled £1.28 trillion and is still rising.
If you’re struggling to pay Crystal Finance Debt Consolidation and they continue to send you letters and phone calls, there are many options available to you.
Should I Just Ignore Letters from Crystal Finance Debt Consolidation?
When you owe money to a financial institution like this one, they won’t just go away if you ignore their letters and phone calls.
In fact, the longer you ignore them, the more likely you are to wrack up interest on unpaid loans and negatively affect your credit score.
It’s best to respond to Crystal Finance Limited as soon as possible to let them know you have received their letters.
Do not admit to owing the debt upfront – there are some checks we need to do first.
But opening up this dialogue will prevent them from escalating your case and taking further action.
Will Crystal Finance Take Me to Court?
Crystal Finance won’t immediately take you to court. You’ll first receive several letters with scary-looking claims on them, but they’ll do all they can to make you pay them the money owed without the expense of court fees.
If they do decide to take you to court, there are several sets of documents you’ll receive first receive a default notice which is produced when your account is closed. After this, you’ll receive a letter of claim letting you know legal action is going to happen.
Before legal action is filed, you’ll get a claim pack explaining the court process.
Filing a County Court Judgement
If Crystal Finance Debt Consolidation does escalate your case to court, they can file for a County Court Judgement which will legally compel you to pay the debt in question.
This will usually involve set monthly payments but it is at the discretion of the lender.
Attachment of Earnings Order
If you don’t pay the debt back after a county court judgement is issued, Crystal Finance may file for this order which takes monthly installments directly from your wages each month before the rest is paid to you.
If you are self-employed, retired, or not working for any reason, this won’t be filed.
How to Make a Complaint Against Crystal Finance
Do you feel like Crystal Finance Limited has acted inappropriately when contacting you? You are within your right to make a formal complaint.
Some actions that warrant a complaint include pressuring you to take on more debt, contacting you at unsociable hours, or pretending to be bailiffs.
Post: Crystal Specialist Finance, Unit A Ventura House, Ventura Park Road, Tamworth, B78 3LZ
Email: [email protected]
Phone their Compliance Manager: 01827 301 070
How to Make Sure the Debt You Owe is Legitimate
Whether you’re sure you owe the debt or not, it’s always best to conduct a few simple checks to make sure you’re legally obligated to pay what they allege:
- 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.
Can I Write Off My Debt with Crystal Finance?
If your circumstances have changed since you took on a loan or credit card with Crystal Finance Debt Consolidation, there are some options available:
Write Off Your Debt
If you simply can’t afford to pay back the money owed to Crystal Specialist Finance, you might be able to apply to write off all of your debts.
An Individual Voluntary Arrangement (IVA) is a management scheme that can write off up to 90% of any debt owed.
When you enter this scheme, all debt from any lenders you are currently with is consolidated into one repayment. You will then need to pay this for 60 months (which can be as low as £90 a month).
After the IVA period ends, any remaining debt is written off.
What if I Can’t Afford My Monthly Payments to Crystal Finance?
If you are in the difficult position of choosing between your utility bills and your payment to Crystal Finance, you should stop all payments to Crystal immediately.
Head to your bank account and cancel any direct debits to Crystal. This will prevent them from taking money from your account.
Once you’ve done this, you can look at some different debt management options to help get you back on track:
This is only useful if you have money to spare each month after paying all of your bills and other necessities.
Start by doing a financial snapshot to figure out your monthly outgoings. If you have any money left at the end of each month, the Snowball Method will help you allocate this money in the most effective way to help pay down debts quicker.
When you are under a debt management plan, lenders will help you to pay off debts faster in a number of ways:
- Freezing interest payments
- Reducing the minimum monthly payment
- Extending the repayment period – without freezing interest though, this will mean you end up paying more in the long run
This is an informal arrangement that you can leave or cancel anytime (as can your lender), but it can be a good solution if you’re struggling to make your monthly payments on multiple debts.
If you’ve recently had a change in circumstances like being made redundant, a debt relief order could help. All debt repayments are paused for around 12 months, giving you time to find a new job and get your finances in order.
During this time, you won’t receive any debt collection letters and the lenders can’t add more interest to the debt.
This is the best option if you have less than £30,000 in debt and have less than £75 spare each month after paying all your bills and necessities.
If you can prove that your lender did something wrong when you took out the loan, you might be able to get a refund. The most common reason is a lender giving a loan with knowledge that the person wouldn’t be able to afford repayments.
If you’re unsure how to apply for a loan refund, we’ve created a free template you can use.
If you declare bankruptcy, all your debt will be written off within a year. This only applies if you have more than £5,000 in debt and can afford the fee to apply (which is currently around £680).
This has a massive impact on your credit and will severely affect any future attempts to gain finance. So it is a last resort option.
Dealing with Crystal Finance Debt Consolidation Without the Stress
No matter how stressful it is receiving letters and phone calls demanding repayments you can’t afford, it’s important to remember that you have many options available to you.
Whatever your situation is, there is never any need to get yourself into more debt to pay back a loan you can’t afford.
If you’re still struggling to find the best option, use our Debt Write Off Calculator to see if you are eligible to write off your loan.