Icon Collections Debt Letters: Check the Debt and Your Options

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.

A debt letter can be worrying. Keep the correspondence, check the creditor and balance, and note any response deadline. Free independent debt advice is available.

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.

If dealing with debt is affecting your wellbeing, seek support and tell the firm about any communication or accessibility needs. A debt adviser can help you decide what to do next.

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.

Do not assume a letter is legally accurate or has been approved merely because it looks formal. Check the creditor, sum, legal basis and response deadline.

A collection letter should explain the demand clearly and must not mislead you about possible consequences.

A lawful warning of possible action is different from a misleading threat. Get advice if the letter suggests powers or deadlines you do not understand.

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 may	Limits and protections
Contact you to seek payment	For regulated consumer credit, contact must be at reasonable times and respect reasonable requests about when, where and how you are contacted.
Ask to discuss the debt at a home visit	A collector has no bailiff powers, cannot force entry or take goods, and should leave when asked.
Explain possible court action	They must not mislead you about their powers or threaten action they cannot lawfully take.
Discuss an affordable repayment or settlement	Get agreed terms in writing and obtain free advice if you dispute the debt or cannot afford payments.
A creditor may seek a separate court enforcement order	A CCJ alone does not give a collector access to your bank account. A third-party debt order requires a separate court process.
A creditor may assign a debt	Check who owns it and who is authorised to collect; do not disclose payment details to an unverified caller.
Make proportionate follow-up contact	Harassment is prohibited. Requests about contact must be considered; necessary legal notices may still be sent.

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

Read the letter promptly and note its date and deadlines. Seek advice as soon as possible; a request for help or documents does not automatically extend a court deadline.

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.

If you dispute the debt, explain the issue and request evidence using an appropriate letter. Keep a copy of the request and any response.

If you dispute the debt, explain why and request an itemised balance and evidence of liability. For recovery covered by FCA consumer-credit rules, a valid or potentially valid dispute must be investigated and recovery paused. A generic proof request does not cancel a debt, override an existing judgment or extend a court deadline.

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. 

The firm can explain its claim and consider a proposal, but it is collecting for a creditor. Independent debt advice is available separately.

Ignoring genuine correspondence can leave a dispute unresolved or lead to a claim and default judgment. Further action is possible, not inevitable in every case.

If the letter is addressed to someone else or uses incorrect details, tell the firm and ask it to correct the records.

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

State your reasonable preferences for how, when and where you are contacted, and explain any health or accessibility needs. FCA-regulated recovery must give those preferences due regard. This is not an absolute right to prevent every call or required notice.

Mentioning possible court action in an initial letter is not automatically unlawful. The statement must accurately reflect the available action and applicable pre-action requirements.

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”?

Icon’s authority depends on the creditor’s instruction or any assignment. It has no special enforcement powers merely because it is collecting an account.

Icon provides debt-recovery services for clients. Do not assume it has bought the account or paid a particular fraction of the balance.

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.’

For an ordinary civil debt, the entitled creditor may bring a claim and then seek an available enforcement method after judgment. A High Court order is not always required, and regulated Consumer Credit Act debts cannot normally be transferred to the High Court for enforcement.

An unsecured debt is not initially secured on your home, but a judgment creditor may seek a charging order where available.

An order for sale is a separate court process. There is no universal requirement that every other recovery option be exhausted before a charging-order application; seek advice promptly if one is threatened.

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.

Check the account and independently verify the payment destination first. If the debt is enforceable and affordable after essential costs and priority debts, consider payment or an agreed plan. Do not borrow further or miss essential bills simply to meet a collection demand.

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 insolvency arrangement managed by an insolvency practitioner. Your proposal sets out payments, any assets involved and fees. Once approved, it binds the creditors and debts covered by it and restricts recovery action; it is not a blanket ban on necessary correspondence.

Many IVAs involve payments for five or six years, but the agreed term varies. Qualifying unpaid debt is normally released only on successful completion. An IVA affects your credit record, may involve assets or home equity, and can fail if its terms are not met.

IVA suitability depends on your debts, affordable contributions or available assets, fees and creditor approval. There is no universal rule that you must owe several thousand pounds to more than one creditor. Get independent debt advice and compare other options before agreeing to an IVA.

Trust Deed

IVAs are not available in Scotland. A Scottish money adviser can compare a protected trust deed, the Debt Arrangement Scheme, sequestration and informal arrangements; a trust deed is not compulsory.

A protected trust deed is a Scottish insolvency arrangement, usually lasting at least four years of contributions. It can discharge qualifying unpaid debt on successful completion, but fees apply and your home or other assets may be at risk. Covered creditors cannot pursue payment outside it, but can still send required documents.

Debt Relief Order (DRO)

In England and Wales, a DRO may suit an eligible non-homeowner with low surplus income, limited assets and qualifying debts within the £50,000 limit. Detailed income, asset, vehicle and residence rules apply. An approved debt adviser checks eligibility and submits the application to the Insolvency Service.

During the usual 12-month DRO period, recovery of listed qualifying debts is restricted and you generally do not pay those debts. Ongoing bills and excluded debts still need attention. Creditors may send statements and other permitted correspondence.

A DRO normally lasts 12 months. If it remains in force, the qualifying debts listed in it are normally discharged at the end. You must report relevant changes and continue paying ongoing bills and excluded debts, such as court fines and student loans.

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

Scotland’s Minimal Asset Process is a form of bankruptcy for people meeting specific debt, income and asset conditions. It has consequences for credit and finances and should be assessed with an approved money adviser. See related guidance, Minimal Asset Process guide.

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

Ask the collector to explain unfamiliar terms and provide clear written information. You can use an authorised debt adviser to communicate on your behalf.

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.

Complain to the business first. If the activity falls within the Financial Ombudsman Service’s remit, you can normally escalate after a final response or eight weeks without one, usually within six months of the final response. The Ombudsman can require redress, such as compensation or correcting records; it does not fine firms or remove their authorisation.

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