Junk mail, bills, more junk mail – and an FSB Debt Recovery debt letter!

You are not alone if you received an FSB Debt Recovery debt letter recently. This group have begun chasing debts for their members and you might be their next target. Learn the ways and tricks to fight back against FSB Debt Recovery in this simple guide.

Who Are FSB Debt Recovery?

FSB is a membership group that is designed to help businesses and change government regulations to help businesses do better. They strive to help smaller businesses and give advice. The best of their services are accessed through a membership service where business owners will pay ongoing fees to be a part of the group and use their resources.

FSB Debt Recovery is part of their group and they chase debt for their members.

Don’t worry, here’s what to do!

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Who Can FSB Debt Recovery Help?

FSB Debt Recovery will help any of their members chase debt relating to their business. For example, of the business owner has not been paid for their products or services (either by a customer or another business) the FSB Debt Recovery team will chase that debt as part of their membership.

What Is an FSB Debt Recovery Debt Letter?

The initial way that FSB Debt Recovery will try to recover the payment is by sending a debt letter that asks for the money. But the letter will also state that if the other person or business does not pay, then they will take further action such as going to court. This is why these FSB Debt Recovery debt letters are known throughout the industry as a Letter Before Action.

FSB Debt Recovery believe these letters are effective because people pay out of fear of being taken to court, which is true.

Should I Bin My FSB Debt Recovery Letter?

FSB Debt Recovery is a legitimate part of the FSB business and you should not ignore or bin their letters. If you owe one of their members money, there is a chance that their threats are not empty and they will take you to court.

One common reason why people ignore FSB Debt Recovery is because they disagree that they owe the money. And another is that they can’t afford to pay the debt.

In either circumstance it is best not to ignore FSB Debt Recovery. We will explain what you can do instead later in our guide.

When FSB Debt Recovery Won’t Stop Calling…

There is a possibility that FSB Debt Recovery will call you if their letter has not made you pay. They could use pressuring tactics when calling or make repeated calls. This is illegal.

To stop FSB Debt Recovery from making too many phone calls, you can inform them of contact preferences. If they do not abide by the times of the day you have said you can be called, they are committing an offence.

You could even complain about FSB Debt Recovery to the Ombudsman!

What Powers Do FSB Debt Recovery Have?

To understand what powers FSB Debt Recovery have, you need to know the difference between debt collector groups that chase debt, and debt collectors who are bailiffs.

The former are admin businesses that send letters and try to recover payment. They can take you to court.

If they do take you to court and win, they can then employ a bailiff who can come to your house and ask for payment or remove items to pay the debt.

FSB Debt Recovery have no legal powers like a bailiff does.

Make FSB Debt Recovery Work for It (Proving the debt!)

On the FSB Debt Recovery website, they clearly state that the letters they send usually get debtors to pay instantly (just what they want!).

But you are not legally obliged to pay until FSB Debt Recovery have proven you owe the debt. Consequently, you can reply to their debt letter with a request for proof you owe the debt.

To make this easy, we have already written the letter for you. Just add your own details to our prove the debt letter template and pop it in the post!

Understanding Your FSB Debt Recovery Options

But what if FSB Debt Recovery do reply with evidence that you owe the debt. Note, evidence would be a signed agreement or equivalent – not just more letters saying you owe the money.

If they di supply proof, you need to pay or face the possibility of legal action. IF you can’t afford the full amount, speak with FSB Debt Recovery. They are known to offer repayment plans to help you pay back in instalments.

Other debt solutions are available too, such as Debt Relief Orders, Bankruptcy and IVAs. Explore these options at MoneyNerd or with UK debt charities.

Fight Back with a Legal Loophole

Not many people are aware, but many debts that are over six years old are too old to be enforced by the courts. If the debt that FSB Debt Recovery is referring to is more than six years old, we recommend searching for more information on statute barred debt.

If your debt qualifies it will not be wiped, but there will never be any legal obligation for you to pay. Moreover, you can get FSB Debt Recovery off your back by informing them of this.

Make an FSB Debt Recovery Complaint

There are many things that FSB Debt Recovery cannot do when trying to get you to pay, such as using pressuring tactics, pretending to be bailiffs and harassing you with calls.

If you want to complain about these things, your first complaint must be sent to FSB Debt Recovery. If they don’t respond in a way you expect, you should then complain to the Financial Ombudsman.

There is a chance you could win compensation from FSB Debt Recovery!

About the author

Scott Nelson

Scott Nelson is a financial services expert, with over 10 years’ experience in the industry, including 6 years in FCA regulated companies. Read more
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