Lantern Debt Recovery UK – 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.
Getting a surprise letter from Lantern Debt Recovery UK can be worrying. Luckily, you’ve come to the right place. Each month, over 170,000 people visit our website for advice on matters of debt, just like this one.
In this article, we will guide you on:
- Understanding who Lantern is and why they have contacted you.
- Exploring if you can reduce some of your Lantern debt.
- Learning what action Lantern can take.
- Finding out how to avoid all contact with Lantern debt collectors.
Nearly half of the people who deal with debt collection agencies have experienced harassment or aggression1. Some of our team members have also been there.
Don’t worry; with our experience, we’ll help you learn how to deal with Lantern Debt Recovery UK.
Why has Lantern contacted you?
Make sure the debt is yours!
You can use one of our free letter templates to help you write to Lantern.
Make sure your debt is valid
The debt will still technically exist, but there is no legal way for you to be forced to pay once it is ‘statute-barred.’
Keep in mind that not all unsecured debts can become statute-barred.
HMRC debts, for example, can be enforceable for decades. In a similar vein, if a County Court Judgement (CCJ) was issued against you for the debt within the 6 year window it will always be enforceable.
Follow our ‘prove it’ guide with letter templates and get them to prove that you owe the money.
Typical Debt Collection Process
It’s common for Lantern to call or send letters, so don’t worry. It’s part of the first stage of the debt collection process.
We’ve put together this table to help you better understand the debt collector timeline.
If you want to learn more about the key stages and actions involved in this process, don’t forget to read our specialized guide.
Stage | Actions | What you should do: |
---|---|---|
Missing one or two small payments | Calls and letters from the debt collector asking for payment. They may enquire about reasons for missing payments. | Contact the debt collector and offer to pay what you can. If you are struggling to pay the debt, get in touch with us to explore your options. |
Missing large or multiple payments | Their contact will become more frequent, urgent, and threatening. | Contact the debt collection agency and offer to pay what you can. You may also make a complaint if you think the letters are a form of harassment. |
Debt collector visit | After a few months, if the debt is significant (£200+) you will receive notice of a debt collector visit. They have to notify you before arriving. Debt collectors cannot take anything from your home – they may only ask for payment. | If a debt collector shows up at your home, ask them to show proof of the debt and their ID through a window. Do not open your door or let them in. You can arrange a payment plan with the debt collector, but make sure to get a receipt of this. |
Court | If you still do not pay your debts to the original lender/debt collector agency, they will take you to court and either attempt to: – File a CCJ against you. – File an attachment of earnings order. – File a lawsuit against you. |
You must show up to your court date. From here, you can either dispute the debt, or the judge will likely suggest a manageable repayment plan for you. |
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 you repay Lantern?
What action can they take?
» TAKE ACTION NOW: Fill out the short debt form
Janine, our financial expert, explained that while debt collectors can visit your home for payments, they cannot come to your workplace, act threateningly, force payment, or discuss your finances with others.
If they violate these rules, you can complain.
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.
What to do if you can’t afford to repay
You may be offered a repayment plan.
You may be able to negotiate with Lantern and agree on lower interest rates or even a brief payment holiday to help you get your finances straightened out.
But sometimes that doesn’t work either and you may need to look at a debt solution.
If you are considering a debt solution, you need to speak to someone to get financial advice that is specific to you.
There are several organisations in the UK that offer these services for free and their advisers will be able to help you find the debt solution that works best for you.
Debt Management Plan (DMP)
A DMP is an informal debt solution that lets you pay off multiple debts via a single monthly payment.
As it is informal, a DMP is not legally binding whcih means you are not tied into it for a minimum number of payments or a set time frame.
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 or after your IVA.
Typically, your IVA will last 5 to 6 years and any of your remaining debt at the end of your IVA is written off.
Keep in mind that IVAs are not the right option for everyone. You must be able to demonstrate that you have some disposable income every month to qualify.
You also need to owe several thousand pounds to more than one creditor to be eligible.
Trust Deed
IVAs are unavailable in Scotland. Instead, you will need to look into a Trust Deed.
Trust Deed conditions work in the same way as an IVA – you pay an agreed sum each month that is shared out amongst your debts, your creditors can’t contact you, and any outstanding debts at the end of your term are written off.
Debt Relief Order (DRO)
If you have no valuable assets and a smaller income, you may be eligible for a DRO.
For a year, you make no payments towards your debts. Your creditors can’t contact you during this time and they must freeze your interest.
Your finances are then reassessed and, unless there has been an improvement in your situation, your remaining debts may be wiped off.
Bankruptcy and Sequestration
Bankruptcy – or sequestration in Scotland – has a negative stigma but it may be your only way of clearing your debts and getting a financial fresh start.
This is a debt solution for those with debts that are worth more than the value of everything they own, meaning that there is no realistic way of you ever paying them off.
If you are in Scotland and have few assets, you may be eligible for a minimal asset process bankruptcy (MAP).
This is a quicker, easier, and cheaper process than the sequestration process and is a good option for those with minimal income.
Complaints about Lantern
If you think that Lantern Debt Recovery have broken any of the FCA’s rules and regulations or acted inappropriately, you can make a complaint.
Fortunately, reporting Lantern misconduct and complaining are quite straightforward processes.
First make your complaint directly to Lantern so that they have the oppurtunity to sort out the issue themselves.
If they don’t address your issue adequately, you can escalate matters to the Financial Ombudsman Service (FOS). They will investigate your complaint and, if it is upheld, Lantern Debt Recovery may be fined and you could be owed some compensation.
Case study:
If you owe lots of money to more than one creditor, you could be eligible for an IVA.