DRS Collection (Debt & Revenue Services) Should You Pay?
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
Have you received a letter from DRS Collection (Debt & Revenue Services) and you’re not sure what to do next?
You’ve come to the right place for answers. Every month, over 170,000 people visit our website for advice on situations like this one. We have a lot of knowledge to share with you.
In this article, we’ll guide you on:
- Understanding who DRS Collection is.
- How to decide if you should pay them or not.
- What actions you can take if you can’t afford to pay.
- How to handle a visit from a DRS debt collector at your home.
Research shows that 64% of people in the UK who are chased by debt collectors feel stressed.1 Some of us have even experienced this.
Our team understands your worry and we’re here to help you find out more about DRS Collection and what your options are.
Why are they contacting you?
DRS is a debt collection agency. This means that other companies and organisations employ them to chase outstanding debts on their account.
Either this or DRS now own the debt, having bought it from the original creditor.
These types of companies are typically called upon when the original creditor has tried to contact you several times without success.
So, if you owe a company or organisation money and have been avoiding their calls and letter, they may refer the case to a debt collector like DRS.
Of course, there are a few instances where they’ve been given your details by mistake.
It could be that your name is similar to someone who owes them money, or they may have previously lived at your current address. They could also be contacting you on the off chance that you’ll pay without checking that you owe the debt.
What should you do if you receive a DRS debt recovery letter?
The first thing to do is to contact them directly. Don’t ignore their claim you owe them money, as they won’t stop.
Instead, you can ask them to provide proof that it’s you who owes the money.
They’re legally required to do so. Most of the time these letters do not provide adequate details about the debt, but simply say you need to pay or face court action.
We explain exactly how to do this and provide a letter template in our free prove-it guide.
Note: When you send this letter you should print your name but never sign it to prevent the possibility of forging evidence against you.
The legal onus is on Debt Revenue Services to prove you owe the debt. They may need to communicate and work with their own client (the company you owe) to find this proof.
It can cause long delays which give you time to think about your options. And of course, if they do not supply proof you do not need to make a payment.
If they do not give you proof and continue to ask for a payment, this is harassment and should be formally complained about to the Ombudsman.
If you do prove you owe them money, you’re going to have to pay at least some of it back.
By contacting DRS directly, you can start to organise a payment plan that works with your current financial standing. This can often be a low monthly repayment, although they’re not legally obliged to accept your proposal.
Negotiating with debt collectors can be stressful, so you need to keep calm! We recommend taking a thorough and realistic look at your finances. That way, you’ll know how much you can afford to pay.
Don’t agree to paying back more than you can afford!
You will need your DRS account details to make payments or agree to allow them to take payments directly from your bank.
How a debt solution could help
Some debt solutions can:
- Stop nasty calls from creditors
- Freeze interest and charges
- Reduce your monthly payments
A few debt solutions can even result in writing off some of your debt.
Here’s an example:
Situation
| Monthly income | £2,504 |
| Monthly expenses | £2,345 |
| Total debt | £32,049 |
Monthly debt repayments
| Before | £587 |
| After | £158 |
£429 reduction in monthly payments
If you want to learn what debt solutions are available to you, click the button below to get started.
Should you ignore them?
In short, no – that’s a bad idea.
We always recommend responding to debt collectors – even just to question the debt’s validity. Remember, you have the right to request proof of the debt. They have to prove it, or they can’t charge you.
By ignoring a debt collection agency, you’re not making them go away. Instead, it will make them increase their efforts to try and reach you. So, what starts with a letter could result in multiple letters, texts, and calls. This, in itself, can be stressful. However, things can also escalate if you persistently ignore DRS.
DRS could eventually ask a judge to issue a County Court Judgement (CCJ), which makes it your legal obligation to pay. This may mean having to attend court.
If you continue to ignore them, they could request bailiffs go to your property to try and recover goods to cover the value of the debt, including your car if you do not need it for work.
Ignoring DRS should not be the approach you take. Instead, you should know what rights you have, what legal action they can take, and how you should approach the situation.
What if you can’t pay DRS?
If you are struggling with your debts and worry that you can’t afford to pay DRS, you may want to consider a debt solution.
There are several options in the UK, so we recommend speaking to a debt charity as soon as possible. Their advisers will be able to talk you through your options and find the type of debt relief that will suit you best.
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 not 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.
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Can I Write Off All of the Debt Revenue Services Debt?
Debt Revenue Services are not likely to offer to write off the debt you owe.
There is a good chance they are just chasing you for money for another business, so they’re going to try and maximise their profits. After all, chasing debt is very profitable, as debt collection agencies buy billions of debt annually at rock bottom prices – at an average of 10p to £1!2
You can use our free letter template to ask for a settlement agreement. Just make sure you get any new agreement in writing.
This will make sure that your records are up to date and make it more difficult for DRS Collection to dispute your debt in the future.
Some of the above debt solutions offer ways to write off some of the debt. These are:
- IVA or Trust Deed
- DRO
- Bankruptcy or Sequestration.
» TAKE ACTION NOW: Fill out the short debt form
The Legal Loophole to Avoid Debt Revenue Services
If it has been 6 years – or 5 years in Scotland – since you last made a payment towards your unsecured debts and you have not written to your creditor about your debt during this time, it is statute-barred.
This means that the debt is not enforceable. It still technically exists, and you still technically owe the money, but there is no legal way for you to be forced to pay or for the debt to be enforced.
Keep in mind that not all debts become statute-barred!
Any HMRC debts, for example, will stay enforceable for decades. Any debt that had a County Court Judgement (CCJ) attached to it during the 5 or 6-year window will always be enforceable.
Can you report Debt Revenue Services?
If you think that DRS 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) rules and guidelines.
Make your first complaint to DRS 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, Arvato may be fined. You could even be owed compensation.
We provide a free step-by-step complaint guide to lodge your Debt and Revenue Services complaint.
If you need further help dealing with a debt collection letter from DRS, you can contact Citizens Advice. They can help you find out more information and make a plan for dealing with DRS.
Know Your Rights
When trying to collect debt from you, there are things debt collectors can and can’t do. It’s crucial that you know your rights to avoid being taken advantage of.
| Debt Collectors Can | But They Can’t |
|---|---|
| Contact you by phone or mail. | Call you after 9pm or before 8am. |
| Conduct home visits (on rare occasions) and knock on your door. | Forbily enter your home, or stay if you ask them to leave. |
| Threaten to take you to court by suing you for payment on a debt. | Harrass you, including threats of violence, repeated calls and visits, or abusive language. |
| Negotiate a debt settlement. Tip: make sure to get this new arrangement in writing. | Visit your workplace. |
| Access your bank account, but only after a court judgment has been made. | Take anything from your home or threaten to do so. |
| Sell your debt. | Speak to other people about your debt without your permission. |
| Contact you frequently. | Keep doing so if you request that they reduce communications. |
DRS Collection Contact Details
DRS has a specific number they want you to call if you do not think you owe them money, which should be quoted in their letters to you. However, you can also simply ring them on their general number.
| Website: | https://my-drs.co.uk/ |
| Phone number: | 0151 545 1500 9am to 5:30pm Monday to Friday |
| Email: | online form |
| Registered Office: | 1st Floor, Moorgate Point, Moorgate Road, Knowsley Industrial Park, Liverpool L33 7XW. |
Debt Revenue Services FAQs
DRS Debt Are Not Dynamic Recovery Solutions!
If you search for DRS debt online, you will find another company with the same initials called Dynamic Recovery Solutions.
It just so happens that they are also a debt collection agency, but they are not connected to Debt Revenue Services in the UK. They are a USA-based debt collector that recover debts in the States.
References
