LCS Debt Recovery (LCSDR) – Should You Pay? 

Dealing with a surprise letter from LCS Debt Recovery (LCSDR) can be a bit scary, but don’t fret. You’re in the right place to learn about your options. Each month, over 170,000 people visit our website to find information about their debt issues.

In this article, we will discuss:

• Who LCS Debt Recovery are.
• Why they may have contacted you.
• If you should pay the debt they claim you owe.
• How to know if the debt is really yours.
• Ways to stop LCS Civil Enforcement from contacting you.

We understand that dealing with debt can be tough, as research shows 64% of UK adults find interactions with current debt collectors stressful¹. Luckily, this guide will help you understand your rights, your options, and how to make the best choice for your situation.

Let’s dive in.

Why are LCS Civil Enforcement contacting me?

If you have LCS Civil Enforcement chasing you, you probably have unpaid debts.

They will chase the debt on behalf of the company you took out the credit with, such as a credit card company.

You may not have heard of them before, and they might pop up out of nowhere. They are contacting you now because they have probably just purchased the debt.

Debt collectors can get quite a good deal when they snap up your debt. The original creditor is the one that really doesn’t gain much as they sell it on at a much lower rate to get rid of it.

For instance, you could have run up a loan of £1,000 and the debt collection company may buy it for only £200, but they will still chase you for the £1,000. Therefore, if you do pay, that’s a profit of £800 for doing not very much at all.

To put this into larger numbers, debt collection agencies buy billions of debt annually at rock bottom prices – at an average of 10p to £1!²

This explains why there are hundreds of debt collection agencies in the UK, and also why they are so eager to get you to make payments. They are so eager that some will even resort to abuse and harassment to try and get you to repay your debt.

You could even be chased for a debt that you aren’t liable for.

Finding out if it’s your debt

If you are able to, your first instinct when you receive the debt letter is probably just to pay up, as quickly as possible.

While this is definitely a good idea if you have LCS Civil Enforcement debts, you need to establish that you do owe it first.

Don’t jump into making debt payments unless you are sure it belongs to you. We always recommend responding to debt collectors – even just to question the debt’s validity. Remember, you have the right to request proof of the debt. They have to prove it, or they can’t charge you.

It is easy to get confirmation, just write to LCS Solicitors Debt Collectors and ask them to send you a copy of your credit agreement. There is no legitimate reason why this would be an issue if they have purchased the debt. If you are sure that it’s your debt, you now need to work out if it is enforceable.

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 6 years but can be ‘reactivated’ by going back to court for another judgement.

Why should you pay?

When you consider that their business operates on collecting debt payments, if no one pays, they have no business.

The debt may be quite old and you could be wondering why they are even still bothering with it, especially if it is a sum amount. It might seem like they are spending a ridiculous amount of time trying to get the payment from you, and they probably are, but if they don’t, no one would bother to pay!

If you do owe the money, clear it off with LCS Solicitors Debt Collectors, or come to an arrangement to pay it.

» TAKE ACTION NOW: Fill out the short debt form

The potential repercussions of debt collectors

Debt problems are common nowadays, and no one gets into debt deliberately.

It is one thing being contacted by debt collectors, but quite another when they are bullying you or making you feel humiliated about your debt issues.

This only stands to escalate the feeling and make the situation worse for debtors.

If you are being pursued by LCS Solicitors Debt Collectors or another debt collection agency, it could cause devastation to your life.

It may sound like an exaggeration, but if you are struggling with debt and your phone is constantly ringing with agents just waiting to give you a hard time, it can lead to severe distress and even depression.

There have been reports from the debt support trust that even state some people end up feeling suicidal because of their debt. Some people feel they have nowhere to turn, and no way of getting out of the despair caused by the debt.

They feel utterly humiliated and disconnected from friends and family, to the point that they want to give up.

No one should feel like this and due to the escalating problems, the government were asked to look at lenders and their practices in more detail to try and offer better protection to borrowers.

It’s always a good idea to know your rights and what debt collectors are entitled to do in cases like these. Here are some general aspects regarding what debt collectors can and can’t do when trying to recover a debt from you.

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Other options

If you are struggling with your debts, you may wish to consider a debt solution.

There are several different debt solutions in the UK, so we recommend speaking to a debt charity for some free debt counselling and financial advice. Their advisers will be able to find out which solution is best 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

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.

Can You stop LCS Civil Enforcement from contacting me?

No, you won’t be able to completely stop LCS Civil Enforcement from contacting you, because they may be legally required to do so. However, you have the ability to communicate your contact preferences, such as requesting that all communications regarding your debt be conducted in writing rather than over the phone.

How Can You Complain About LCS?

If you think that LCS 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.

Fortunately, filing a complaint against LCS is quite straightforward!

Make your first complaint to LCS 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, LCS may be fined. You could even be owed compensation.

Make sure you keep your wits about you when dealing with debt collectors.

How can You contact LCS Debt Recovery?

You can contact LCS about your debt, arrange a direct debit, or even speak to someone about further action in regards to your debt.

FAQs

References

1. InDebted Debt Collection Survey.
2. JubileeDebt, A Fresh Start Over Covid-19.

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

CONC 7.9 Contact with customers