Icon Collections Debt – Do You Have to Pay?

If you’ve found a letter from Icon Collections in your post, you might be feeling worried. You might not know why you owe them money or if it’s even real.

Don’t worry, we’re here to help. Over 170,000 people visit our website each month for helpful advice on debt matters, just like this one. We know what it’s like, and we’re here to guide you.

In this article, we’ll explain:

•  Who Icon Collections are and why they could be contacting you.
•  How to check if the debt is really yours.
•  What to do if you can’t afford to pay.
•  Your options to set up payment plans.
•  How you might be able to write off some of your debt.

We understand getting a letter about debt can be scary. After all, nearly half of individuals who deal with debt collection agencies have experienced harassment or aggression¹.

Some of our team have been in the same boat. But, with the right help and information, you can handle this. So let’s get started.

Why is the letter written with such strong language?

Many people are upset when they first receive a debt collection letter.  It is perfectly normal to feel distressed at what might seem like bullying language.

Most letters will begin with a clear statement of who you owe and how much money is due.

The letter will then go on to explain what will happen if you do not pay by a set date. It may include mention of court action and the appointment of bailiffs. This can appear like a threat.  Yet, the letter is aiming to set out clearly the consequences of any non-payment.

You will then be given options of what to do next.  You will be given opportunities to pay the debt or invited to contact the company.

The words of the letter are carefully selected because the company is following a legal process.  The message will have passed through compliance.

It is also vital that the letter be clear, factual, and unambiguous.  In short, if the agency tried to make it sound friendly, with lots of frilly language, there is a chance you would misunderstand.

Consequently, rather than try to bully you, the letter is trying to communicate as clearly as possible the cause for the message being written and the consequence if you do not follow up.

Your Rights With Debt Collectors

While debt collection agencies may try to intimidate you, they are not allowed to harass you.

We’ve created this quick table that will help you understand what debt collectors are allowed to do. If you want to learn more about your rights or require further advice, make sure to check out our detailed guide.

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.

What should I do when I receive a debt collection letter?

You do not need to act straight away.  The letter will suggest a sense of urgency.  However, if you read the details carefully, you will be given time from when the letter was written to respond.  You should use this time wisely.

Taking a moment to pause and think clearly will help you when you’re managing debt stress. You can use this brief window to contact someone for some debt advice, too.

» TAKE ACTION NOW: Fill out the short debt form

First, you need to check if you do owe the money.  If you are shocked by the arrival of the letter, there may have been an administrative error.  You may wish to investigate before reacting.

Your first port of call should be writing to Icon Collections and requesting proof that the debt is yours. You can do this with our free ‘prove it’ letter template. Icon will then have to send you evidence that you are liable for the debt.

You are under no obligation to pay for a debt that can’t be proven to be yours.

If you knew the debt was outstanding, but you do not have the money, then you should approach independent advisors for guidance on debt management.  There are lots of ways to pay the money back in manageable chunks. 

If you have the money, you should still seek advice before paying the debt to this company.  There may be lots of better ways of managing the debt.  If you want to work with the company, then you should contact their helpline or visit the website for more information. 

Once you have got over the initial shock, you will be pleased to know that the people on the other end of the phone are there to help.  They will be happy to talk you through the debt and the means of payment.

Ignored letters and calls will lead to further action.  There is little point hoping a lack of response will mean they will go away. 

Debt collection agencies have the means to check that you are still associated with the address.  Consequently, they will see a lack of response as a reason for additional action.

Sometimes, your first letter will be necessarily scary. Take a look at this example.

This person is obviously aware of their rights – you can request that debt collection companies only contact you in specific ways. Only via the post, for example.

But no matter your communication preferences, threatening court action in the first letter is unrealistic, especially if the debtor hasn’t received any proof that the debt was theirs!

If you need some guidance when drafting letters like this forum user, you can use any of our free letter templates to help.

What do you mean by “additional action”?

The legal powers of the debt collection agency are no different from the original company with whom you owe money. 

Companies, such as Icon Debt Collection, have bought the debt from the organisation you owed money to and are now pursuing the money instead. This is quite normal, as debt collection agencies buy billions of debt annually at rock bottom prices – at an average of 10p to £1! ²

Consequently, the debt collection agency can only make reasonable requests for payment.  They cannot harass you, call you at all hours of the day or enter your home without your permission.

If the company sends a person to your house, they should introduce themselves as a debt collection field agent.  They are not bailiffs, and nor should they represent themselves as such.  If you ask them to leave, they should respect your request.

Our financial expert, Janine, says: ‘I understand that having a debt collector at your door can be scary, especially when you are already under huge financial stress. It’s crucial that you stay calm and know your rights. They have no power to enter your home or take any of your possessions.’

If the debt collection company wants to enter your home, they must take you to court first.  They will seek a CCJ (County Court Judgement), and then a High Court order, which will allow them to appoint bailiffs and High Court Enforcement Officers.  They can then recover goods up to the value of the debt or attach an order to your earnings. 

As your credit is likely unsecured, your home is not at risk in the first instance. The debt collection agency would have to take a lot of steps before this was possible. 

Therefore, for a company such as Icon Debt Collection International to apply to the court for the loan to be secured against the loan would be an extreme action.  It is one only taken when all other avenues have been exhausted.

What should I do right now?

Right now, you have just opened a letter from a debt collection agency.  Your mind will be whizzing.  Even if you ignored these letters for a while, you still need time to rebalance and think about some debt management strategies.

Then, you must act.  Outstanding debt needs to be paid – but it doesn’t need to be paid all at once.  Seek advice and guidance on the best route for you.

Can I get a debt solution?

If you are struggling with your debts, you might benefit from a debt solution.

There are several different types of debt solutions available in the UK, so we recommend speaking to a debt charity as soon as possible. Their advisors will be able to look at your finances in detail and help you work out which debt solution will work best for you.

We have linked a few charities that offer these advisory services for free below.

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 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.

I don’t want to deal with these people – what can I do?

It can be intimidating communicating with a debt collection company.  Although they are barred from using too much technical vocabulary or jargon, they will naturally have a much firmer grasp of the law and the correct procedures. 

You won’t know whether to trust what they are telling you, and you might not feel competent to challenge any potential wrongdoing.

How do I complain about Icon Collections?

If you think that Icon Collections 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 to Icon Collections 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, Icon Collections may be fined. You could even be owed compensation.

Icon Collections Contact Details

Address:	Excel House, Homesdale Road, Bromley Kent BR2 9LE
Telephone:	0208 315 2400
Website:	https://www.iconcollections.com/

References

1. Indebted Debt Collection Survey
2. Jubilee Debt Campaign

CONC 7.3 Treatment of customers in default or arrears (including repossessions): lenders, owners and debt collectors

CONC 7.9 Contact with customers