Global Debt Recovery – 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.
Are you worried about a letter from Global Debt Recovery? You’re not alone. Every month, over 170,000 people come to us for help with debt problems. We’re here to help you too.
In this article, we’ll talk about:
- Who Global Debt Recovery is and who they work for.
- How to handle a threatening letter from them.
- If you need to pay the debt they say you owe.
- How to stop their calls, and if they can force their way into your home.
- Possible ways to lessen or write off some of the debt.
- How to stay on top of your debts and where to find free advice.
Our team knows what it’s like to feel scared about debt. Many of us have been there, which is why we want to help you understand the situation better and take control of it.
So, if you’re worried about Global Debt Recovery, keep reading. You might not have to pay them anything at all! Let’s find the best solution for you together.
Received a Global Debt Recovery Threatening Letter?
Ensure Global Debt Recovery Prove Your Debt
Sometimes you’ll need to use a prove the debt letter to find out what they’re actually trying to chase!
Some debt collection companies send out vague letters without supplying you with the required information.
Global Debt Recovery, like lots of debt collection companies, is regulated by the Financial Conduct Authority (FCA). Their rules clearly state that a debt collector has to prove that you owe the debt and can’t chase you for it until they can establish that you 100% are liable!
You Might Not Have to Pay Global Debt Recovery!
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 think that your debt is statute-barred, you can use my free letter template to write to Global and tell them. This won’t restart the 5 or 6-year timer on your debt.
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 I ignore a Global Debt Recovery Debt Letter?
Can Global Debt Recovery Force Entry into My Home?
Understanding your rights against Global Debt Recovery is essential. Perhaps the most important thing to remember is that they can’t force entry into your home.
» TAKE ACTION NOW: Fill out the short debt form
Can I Get a Debt Solution?
There are several different debt solutions in the UK, so you need to make sure that you are choosing the one that will work best for your circumstances.
I recommend speaking to a debt charity. I have linked a few at the bottom of this page that offers free debt counselling and free financial advice. Their advisers will help you make sure that you choose the best debt relief option for you.
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 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.
Stop Those Global Debt Recovery Calls
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.
Natasha
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.
Make a Global Debt Recovery Complaint
If you think that Global Debt Recovery 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) guidelines.
Make your first complaint directly to Global 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, Global may be fined. You could even be owed compensation.
Staying On Top Of Your Debts
One of the hardest parts about being in debt is that the industry isn’t at all transparent.
One common tactic used by Debt Collectors is contacting you under multiple names and addresses.
Sometimes, it’s for practical reasons, but even then it can be confusing and intimidating. So it’s important to try to keep a level head and research what’s going on.
Some of the biggest debt collectors in the UK operate under multiple names.
- Robinson Way will sometimes contact you under the name Hoist Finance.
- Cabot Financial Group recently bought Wescot Credit Services
- Credit Style communicate as both Credit Style and CST Law.
- Lowell Financial also owns Overdales and collects debts under both names.
In fact, in the case of PRA Group, they’ve been known to use multiple company names. As you can see in the image below.
If you’ve been contacted by a debt collector recently, it’s worth going through your post and emails to check that you haven’t missed anything, just in case they’ve started writing to you under a different name.