Catalogue debt: payments, arrears and your options

Understand catalogue credit, persistent debt, payment support and the court process if a balance remains unpaid.

What is a catalogue company?

A catalogue company is a retailer that promotes its products through a catalogue – either a hard copy posted to your address or as a website. Some catalogue companies have a physical catalogue they send out and a website. 

Consumers who purchase from a catalogue company can choose to purchase products by paying in full, just as they would buy products from any other retailer. 

However, catalogue companies also offer consumers the option to spread the cost of a product over many weeks or months. 

Catalogue credit terms vary. Some purchases have an interest-free period; others charge interest or can add deferred interest if promotional conditions are not met. Check the payment dates, rate and total cost before buying.

What is a catalogue debt?

A catalogue debt is when you owe money to the catalogue company because you’ve chosen to spread payments over several instalments instead of paying for the product in full. You have a debt to the catalogue company until you have made all the repayments necessary. 

How do catalogue repayments work?

Catalogue repayments usually require an initial payment at the time of purchase as well as the fee for delivering the product to your address. 

You’ll then be required to make weekly or monthly catalogue payments to the catalogue company until the debt (and interest applied) has been cleared. 

Can I just make the minimum payment on my catalogue debt?

Yes, it’s possible to make a minimum payment towards your catalogue debt. But paying more towards the debt when possible will clear the debt quicker and could save you money on interest.

Moreover, if you only pay off the minimum each month, you could fall into something known as persistent catalogue debt. 

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What is persistent catalogue debt?

For credit covered by the FCA’s persistent-debt rules, the key test is whether more has been paid in interest, fees and charges than in principal over the previous 18 months, subject to the rules’ exceptions. The balance can still be falling; it does not have to stay unchanged.

What happens if I have persistent debt?

The firm must contact affected customers and encourage affordable higher payments. Further contact follows if the pattern continues, and after two consecutive 18-month periods it must take steps to help repay the balance more quickly without worsening the customer’s financial position.

A reasonable repayment period is usually three to four years, with limited exceptions. Where affordable payments cannot achieve this, forbearance may be needed. New borrowing is not an automatic solution. See FCA CONC 6.7.

Pros and cons of using catalogue credit

There are benefits and drawbacks of utilising catalogue credit to make your purchases. We‘ve highlighted the main ones below:

Pros of using catalogue credit

• You can spread the cost of purchases to make the products more affordable for you
• You might benefit from an interest-free introductory period

Cons of using catalogue credit

• Catalogue debt usually has a high rate of interest
• You end up paying more for the product than saving and paying for the product upfront – unless you manage to pay it off during an interest-free period
• Using catalogue credit can give you a false sense of financial stability

Catalogue companies

There are scores of catalogue companies to choose from, especially considering many of them offer identical products. We have written about some of the most popular catalogue companies, which you can read about here.

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What happens if I miss a catalogue payment?

If you miss a catalogue payment, you’re likely to receive a communication from the catalogue company asking you to make a payment and catch up. They might give you a deadline to make this payment. 

What if I don’t pay catalogue debts?

If you don’t pay your catalogue debt, the catalogue company can register the account as defaulted and send you a default notice. The company can then take further action to get you to pay. 

One of the things the company might do is outsource the debt recovery process to a debt collection agency. 

This type of debt collection business isn’t a bailiff and they don’t have any additional powers than what the catalogue company has itself. But the company will be more persistent in trying to get you to pay, usually with calls, texts and letters. 

You should also expect legal threats from the catalogue company or any debt collection agency working on its behalf. 

Can the creditor take me to court over my catalogue debt?

A creditor may bring a claim, subject to the agreement and applicable procedure. In England and Wales you must respond to a County Court claim within the stated deadline, whether you dispute the debt or admit it and need time to pay. Ignoring it can result in default judgment.

A CCJ is not automatically issued simply because you do not dispute liability; the response and court procedure matter. Scotland and Northern Ireland use different systems. Get advice promptly if papers arrive.

Can bailiffs come for catalogue debt?

Enforcement agents do not gain powers from an ordinary collection letter. In England and Wales, a creditor generally needs a judgment and appropriate enforcement authority after non-payment. Other methods may be available depending on the circumstances.

Bailiffs have limits on entry and which goods can be taken. Deductions from wages and benefits are separate processes; catalogue debt does not automatically qualify for direct benefit deductions. Seek advice if enforcement is threatened.

How do you deal with catalogue debt?

Prioritise essential living costs and priority bills, then contact the creditor with an affordable budget. Ask for payment support and explain any vulnerability. A free debt adviser can compare informal arrangements and formal solutions.

Repayment is not the only possible outcome: a genuine dispute, agreed settlement or qualifying insolvency solution may change what is payable. None provides an automatic write-off just because a payment was missed.

How to pay off catalogue debt

To pay off catalogue debt you need to at least make a minimum payment. 

But if that isn’t possible, you could pay off your catalogue debt by including it within one of the following debt solutions:

• Debt Management Plan (DMP) – preferably with the interest and charges frozen
• Debt Relief Order (DRO)
• Individual Voluntary Arrangement (IVA)
• Debt Arrangement Scheme (Scottish residents only)

Or you could use a debt mitigation strategy, such as debt consolidation. 

Can I transfer catalogue debt to a credit card?

This depends on both providers’ rules. A card payment, balance transfer and money transfer are different transactions and may have different fees and rates. A standard balance-transfer offer may not accept a catalogue account.

Compare the full cost, promotion deadline and later rate. Keep making required payments, and do not take out more credit you cannot afford just to delay the problem.

Can I have catalogue debts written off?

Yes, it’s possible to use some debt solutions to write off part or all of the money owed to a catalogue company, such as an IVA or DRO, respectively. 

You could even ask the company to write off your catalogue debt. They may be more willing to do this if you have persistent catalogue debt and they’ve already written to you to encourage you to find a solution. But the company doesn’t have to write the debt off. 

What happens if I don’t pay Littlewoods?

If you don’t pay a Littlewoods catalogue debt the company will register the account as defaulted and stop you from purchasing any more products at Littlewoods. 

They will take further action to recover the debt, such as using debt collection agencies and taking legal action to make you pay. 

What happens to catalogue debt when someone dies?

Catalogue debts cannot be passed on to someone else when the debtor passes away unless the catalogue debt was in a joint name. In the latter’s case, the debt would become the sole responsibility of the surviving debtor. 

The catalogue debt would be repaid from the deceased’s estate. But if there is no money or assets in their estate, the debt would not be paid back, but it wouldn’t be anyone else’s responsibility to repay. 

What can I do if someone has taken out a catalogue in my name?

Contact the catalogue company promptly to dispute the account and secure your information. Check your credit reports and ask for inaccurate entries to be investigated. Report fraud through the appropriate police route; Report Fraud replaced Action Fraud in England, Wales and Northern Ireland. In Scotland contact Police Scotland.

Can I cancel my catalogue debt?

For most distance purchases, tell the retailer within 14 days of receiving the goods that you want to cancel, then return them within a further 14 days. Exceptions apply, and permitted deductions or return costs can affect the refund. Faulty-goods rights are separate.

Cancelling one purchase does not cancel unrelated account balances. Confirm how any refund will be credited and whether anything remains payable. See the official returns guidance.

Where can I get catalogue debt advice?

You can receive free debt advice from debt charities like National Debtline and StepChange. 

These organisations provide confidential and detailed advice based on your circumstances, which ensures you choose the most advantageous method to get out of debt. Sometimes they will even set these solutions up for you.

Alternatives to catalogue credit

Instead of using catalogue credit, the best way to buy products and guarantee you won’t get into debt is to save money and buy the item outright. 

Making purchases outside of your immediate financial reach puts you at risk of getting into debt because you never know how your income could change in the future. 

Although this might make some products unaffordable today, it could save you a lot of money over the long term.