DSL UK Debt Collection – 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.
Have you got a sudden letter from DSL UK Debt Collection? Are you unsure about where this debt has come from or if you should pay it? Don’t worry, you’re not alone. Each month, more than 170,000 people come to our website for guidance on their debt issues.
In this clear and simple guide, we’ll explain:
- What DSL UK Debt Collection is and how to see if it’s real.
- How to check if the debt is really yours.
- What to do if you can’t afford to pay the debt.
- How to stop DSL UK from chasing you too much.
- Ways to set up a plan to pay or even to write off your debt.
We understand it can be really scary to get a letter from a debt collector as some of our team members have had the same thing happen to them. We know just how you feel right now.
Let’s discuss your options and what your next steps should be.
Have you received a DSL UK Debt Collection letter?
» TAKE ACTION NOW: Fill out the short debt form
What do I do if I get a debt collection letter UK?
#1: Check your DSL UK debt isn’t statute barred
If it has been 6 years – or 5 years in Scotland – since you last paid 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 it will be enforceable for the duration of the CCJ.
If you are unsure, I recommend speaking to a debt charity. Their advisors will be able to establish the facts and offer you specific and detailed advice on your next steps.
#2: Ask DSL UK to prove you owe the debt
Debt validation is an essential step – you don’t want to pay a debt that you don’t have to!
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:
Monthly debt repayments
£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 pay DSL UK Debt Collection?
What Court Action Will They Take?
If you don’t engage with any repayment procedures or make any payments towards your debt, you may be taken to court.
This usually means that your creditor or debt collection company will apply for a County Court Judgement (CCJ) against you.
A County Court Judgement (CCJ) is an order from a judge that states you have to pay the debt. This means that the court agrees with your creditor, and you owe the money.
Your judgement will include the following:
- How much you owe
- How you should pay
- Who you should pay
- Your deadline to pay.
Unless you pay within one month of the CCJ being issued, it will be recorded in the Register of Judgements, Orders and Fines for 6 years. If you pay off your debt within these 6 years, you can request that your judgement is marked as ‘satisfied’ on the register.
To do this, write to the court with proof that you have paid off the debt in full.
If you manage to pay within one month of the CCJ being issued, the judgement will not be recorded in the register. You will need to write to the court explaining that you have paid and provide proof.
CCJs are also visible on your credit file for 6 years. This will make it almost impossible for you to get credit during this time.
This is because companies use your credit file to see if you are a ‘high-risk’ customer – someone who might have difficulty paying their bills on time. If you have a CCJ, you have had such trouble paying back your debt that someone had to go to court about it.
Understandably, companies are going to be reluctant to give you credit!
After 6 years, it is no longer visible on your credit report, and you should find it easier to get credit again.
Thousands have already tackled their debt
Every day our partners, The Debt Advice Service, help people find out whether they can lower their repayments and finally tackle or write off some of their debt.
I’d recommend this firm to anyone struggling with debt – my mind has been put to rest, all is getting sorted.
Reviews shown are for The Debt Advice Service.
What if I Can’t Afford to Pay DSL?
If you can’t afford to pay off your debt in one go, DSL has to offer you some different repayment plans for you to follow.
When you are considering these plans or negotiating a new one, you need to be realistic about your finances and only agree to pay what you can afford. Committing to too-large payments that you can’t make at this stage will only land you in more trouble!
If you are really struggling with your unsecured debts, you may benefit from a debt solution.
There are a few different types of debt solutions available in the UK, so I recommend speaking to a debt charity. Their advisors will be able to walk you through your options and make sure that you are picking the best solution for you.
I have linked several charities that offer these services for free at the bottom of the page.
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.
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 and Sequestration
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 is the Scottish version of bankruptcy.
If you have little income and no 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.
How Do I Complain About DSL UK?
If you think that DSL 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 CSA’s code of conduct.
Make your first complaint to DSL 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 a second complaint to the Credit Services Association (CSA). They will investigate and write to you with their findings and suggested next steps.