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MKDP LLP Debt Collectors – Do You Need to Pay?

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MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.

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Janine Marsh

Financial Expert

Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.

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· Feb 6th, 2024
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MKDP Debt Collectors

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.

Did you get a letter from MKDP LLP Debt Collectors, and you’re not sure if you have to pay? You’re in the right spot. Every month, over 170,000 people visit our website looking for guidance on dealing with debt. 

In this easy-to-understand article, we’ll explain:

  •  Who MKDP LLP are
  •  Why they might be contacting you
  •  If you need to pay them
  •  What you can do if you can’t afford to pay
  •  What steps to take when dealing with MKDP LLP

We know that getting a letter from a debt collector can be worrying. You might be confused about where the debt has come from or wondering if this is a real debt.

But you’re not alone; we’re here to help you understand your options. Let’s dive in!

Could you legally write off some debt?

There are several debt solutions in the UK, choosing the right one for you could write off some of your unaffordable debt, but the wrong one may be expensive and drawn out.

Answer below to get started.

How much debt do you have?

This isn’t a full fact find. MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

Why are they contacting you?

MKDP debt collectors are not a company you will have done business with in the past (unless you’ve had another debt with them). They’re a debt collection agency that buys bad debts. So, if you owe money to another company, HMRC, or a council or other organisation, this could be the root of the problem.

These types of companies buy what are known as bad debts. These are debts that are outstanding, where the creditor has been unable to recover them by their own means. Instead of continuing to chase the debtor, they sell the debt for a low price to a debt collection agency like MKDP.

For the debt collection agency, they pay a small price to take on the risk of the debt. They then chase the person who owes the money and pockets the final amount, usually with interest and fees attached.

MKDP are most likely contacting you because they’ve bought one of your existing debts and are hoping to reclaim it.

Are MKDP Debt Collectors a Scam?

MKDP are a legitimate debt collection agency, however, they have been known to use underhanded tactics to chase debts. For example, several people have received letters stating that they cannot enforce the debt, but it should be paid anyway.

For example, here’s a quote from Spud:

“Received a notice of Assignment from Hoist Portfolio for 2x Ex Barclaycard accounts – Last paid Feb 2012. Both had been sold to MKDP – Sent to MKRR/Raven recoveries and after sending Missing P/t letter received a reply from MKDP advising that they cannot enforce this account but I should still pay.”

Because of this, it’s vital to do your own checks to ensure the debt they are requesting is legitimate. It’s possible that you can avoid paying the debt by doing some simple checks – which we’ll go through later in this guide.

» TAKE ACTION NOW: Fill out the short debt form

Should I Ignore Letters from MKDP Debt Collectors?

It’s never a good idea to ignore letters or calls from a debt collection agency. Even if you believe you don’t owe the debt, being proactive is always the best way to resolve the issue.

If you don’t want to deal with the debt collection agency directly, you can also contact the original lender to request more information. They should be able to tell you if they’ve sold the debt to a third party. 

Should I Pay MKDP Debt Collectors Upfront?

Never pay the debt upfront without question. For starters, there may be inaccuracies in the amount owed, or the debt may even be statute barred and no longer legally active.

It’s always best to do some quick and easy due diligence before making any payments to ensure you’re not paying any money unnecessarily.

Finally, if you are in debt and struggling to make monthly payments to creditors or even your bills, do not pay this debt collection agency.

If paying them means putting yourself into more debt, then you need to assess your debt management options before making any decisions. We’ll look at your options later in the guide.

How a debt solution could help

Some debt solutions can:

  1. Stop nasty calls from creditors
  2. Freeze interest and charges
  3. 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.

Get Started

What Do I Do When I Receive a Letter From MKDP Debt Collectors?

Here are some quick and easy steps you should take as soon as you receive a letter or call from MKDP LLP (or any of its subsidiary debt collection agencies):

1. Check your credit report

If you don’t recognise the debt and you’re unsure if it’s legitimate, the first check should be your credit report. Use a reputable agency such as Credit Karma to check if the debt is registered in your name (this is a free service).

If it’s not registered on your credit report, this is the first red flag that the debt isn’t legitimate. 

2. Contact the original creditor

If the letter states who the original creditor was (which it should), you can call them and check whether your debt has been passed on to MKDP. They will be able to confirm this for you, giving you more peace of mind that the claims are legitimate.

3. Ask MKDP to prove the debt

MKDP Debt Collection will need to send you original copies of your signed credit or loan agreement. If they can’t present any evidence of the debt, they have no right to chase you for payments.

Remember, while you’re still requesting evidence of the debt, never admit to owing the debt in writing.

3. Check if the debt is Statute Barred

Debt collection agencies often buy debt that is several years old at least. So it’s important to check if the debt they are chasing is legally in date. Any debt more than six years old in England is Statute Barred, meaning debt collectors no longer have the power of the courts.

If you confirm your debt is statute barred, there is no need to send payment, no matter how many pressuring letters they send.

Find out more about Statute Barred Debt here.

What Do I Do if I Can’t Afford to MKDP Debt Collectors?

If you’ve done all the above checks and you’ve confirmed that the debt is yours and needs to be paid, it is your responsibility to pay the debt.

However, if you are in debt and struggling to make payments, or perhaps your circumstances have changed and you can no longer afford to pay this debt, you have options available.

Important note: Never pay back debt if it means putting yourself into more debt to do so. There are always better options available.

1. Ask for a payment plan

Your first option is to get in touch with MKDP LLP and ask for a monthly payment plan. Make sure you figure out how much you could comfortably pay each month without struggling to pay your other bills.

2. Negotiate a lower payment

If you have some money to spare but not enough to pay the debt in full, negotiate a reduced amount with MKDP.

They may agree to a lower settlement if it is paid upfront. Always start with a lowball offer to gauge how low MKDP are willing to go to get the account settled.

3. Look into a Debt Management Plan (DMP)

This is a good option for anyone who has had a sudden change of circumstances, for example, losing a job. It allows you to pay less than the minimum on your debts each month while freezing all interest rates to allow you to catch up.

Find out if a DMP is right for you here.

4. Apply for an IVA

You may be eligible for an Individual Voluntary Arrangement (IVA). This consolidates all of your outstanding debt into one low, affordable monthly payment.

Find out if writing off your debt is the right option for you here.

10 Steps to deal with MKDP

Although it might seem daunting when you first receive contact from companies like MKDP, try not to let it worry you. There are steps you can take to minimise the damage and relieve some of the stress. Below, we’ve outlined some of the steps you should take when you receive contact from debt collection agencies:

1. Don’t ignore their letters and calls

For most people, the temptation is to ignore letters from MKDP and hope that the problem resolves itself. Unfortunately, this is rarely the case. Debt collection agencies are notoriously persistent when it comes to recovering money. They spend their time being as aggressive as legally possible to get people to pay up. After all, they’re hoping to make a profit out of your missed payments.

Ignoring them will probably only make things worse. They’ll start with one call or letter, but gradually increase their attempts over time. They hope that if they contact you enough, you’ll cave and pay them. If you don’t respond to their letters and calls, they may also visit your home.

Although it’s unpleasant to be in this situation, by being proactive, you can make the process as painless as possible. And, the quicker you deal with it, the sooner it will go away.

2. Find all of the necessary details

Before you do anything else, your first step should be to collect all of the relevant information you need. This can sometimes seem like an impossible task, but with some prep and knowledge, it shouldn’t be too bad.

First, have a look at the letter that MKDP has sent you. This will have the details of what they claim you owe, such as where the debt is from, how much it is, and when your deadline to pay it is. Next, try to find any paperwork, letters, contracts or other information that relates to the debt in question.

If you have bank statements from that period, collect them as well. If you bank online, you should be able to find a fairly detailed history of transactions dating back a few years.

By having all of this information together, you can more efficiently deal with MKDP. You’ll be more familiar with your case, and know what you have and haven’t paid.

3. Understand your rights

Debt collection agencies are governed by a fairly strict set of rules. The Financial Conduct Authority (FCA) has a rulebook for how bailiffs and debt collection agencies must act when dealing with customers. Although it’s unclear whether MKDP operates within these guidelines, they absolutely should. As such, you have a number of rights. For example, they cannot:

  • Threaten you. They can’t send people to your home to threaten you in-person, and they can’t do so on the phone or in a letter. Similarly, they can’t lie to you or force you to take on more debt to pay them.
  • Harass you. This relates to how they can contact you. They can’t persistently call you at unsociable times, and they can’t force their way onto your property. If you tell them how you want to be contacted (only by letter, for example), they have to respect this.
  • Confuse you. They can’t purposely use legal jargon in an attempt to trick you into paying. So, they can’t say they have powers that they don’t or send you letters that look like court documents.
  • Contact others. If the debt is in your name, they can’t approach your friends, relatives, or colleagues to discuss the matter without your permission. The same applies to neighbours and employers.

By understanding these rights, you can make sure they treat you fairly. It also means you can make a complaint if you need to.

4. Know their powers

Although there are certain things they can’t do, they do have some legal powers when it comes to collecting the debt. Before you deal with them, it’s important you’re aware of these. Doing so allows you to make informed decisions about your next actions.

Here are some of the legal MKDP debt management powers that they and other debt management debt collection agencies have:

  • Contact you. They can send you letters and call you, even if it’s using details you haven’t directly provided them with.
  • Add fees. Debt collection agencies often add interest, penalties for not paying, and other fees. They can’t make these excessive, but they can apply them to your debt.
  • Register a default against your credit file. This is basically a black mark against your name that lasts for six years. It shows that you have consistently missed payments, which makes it much harder to get credit.
  • Apply for a CCJ. A county court judgement is basically a court order demanding you pay the money. It outlines how much you have to pay each month and when your payments are due. Again, this negatively affects your credit file for six years.
  • Petition for bankruptcy. This can be disastrous for your long-term financial health. Essentially, it means you’ll be forced to sell assets to cover the cost of your debt.  

5. Contact MKDP

Now that you know the steps MKDP can and can’t take against you, it’s time to reach out to them to discuss your debt. It always helps to be prepared with what you’re going to say before you contact them. Debt collection agencies are notorious for using pressure tactics to get you to pay up. Remember, if you’d rather not deal with them on the phone or in person, you can request to only have contact by mail.

As they don’t have a website we could find, your best bet is to use the contact details they provided on the letter they sent you. This should have a phone number and return address. If you want to write to them, you can also use their head office address:

Quays Reach, Carolina Way, Salford, M50 2ZY, England

6. Confirm the debt

One of the most important things you can do when dealing with any debt collection agency is to get them to confirm your debt. As per Section 7 of the FCA’s Consumer Credit sourcebook, they’re legally obliged to provide you with evidence of what you owe.

You can find examples of these confirm the debt letters online. Essentially, they outline the necessary legislation that protects you. If you claim that the debt is settled or dispute it, they have a responsibility to prove otherwise. Not only can this buy you some time to deal with the situation, but it can also mean you get a clearer picture of what you owe.

In the event that they cannot prove the debt, they have no legal right to continue trying to reclaim the money. It’s vital that you check whether MDKP’s debt management is enforceable.

7. Check if it’s statute-barred

There is a time limit that applies to how far back debt collection agencies can attempt to reclaim money from you. Usually, this is six years. However, it applies differently to different types of debt, and some have no time limit.

These types of debts are what is known as statute-barred. The Limitation Act 1980 outlines the rules on whether or not a creditor can reclaim your debt. There are a few conditions that have to be met in order for a debt to be statue-barred:

  • Neither you nor the original creditor has acknowledged the debt for six years. This means you’ve not received a letter or email from them stating that you still owe money.
  • You haven’t made a payment. Basically, if you’ve not repaid any of the original amount for at least six years.
  • The creditor hasn’t issued a CCJ against you. Again, if they’ve not made a legal attempt to reclaim the money.

If all of the above apply, your debt might be considered statue-barred. It still exists, but it’s not legally enforceable for you to repay it.

8. Pay what you owe

If MKDP LLP confirms that you owe the debt and your records also show this, you will have to repay the money. We all must take responsibility for our finances, and repaying the money is often a much better solution than having to go to court.

If you can’t afford to pay the money in one go, you might be able to arrange a payment plan. This will allow you to pay back regular installments until the debt is cleared. However, debt collection agencies aren’t legally obligated to accept such an offer.

9. Check your debt solutions

If you’re struggling to pay back the amount that you owe, it could be worth looking into other debt solutions. There are several ways you can get help dealing with your MKDP debts:

  • An individual voluntary arrangement (IVA). This essentially combines all your debts into one repayment. It only applies if you owe more than £5,000. However, it means you make one lower monthly payment for 60 months. At the end of that time, any outstanding debt is written off.
  • A debt consolidation loan. This is a loan that allows you to clear your existing debts and have one single monthly repayment. It can be cheaper than trying to pay multiple debts each month.

10. Know where to complain

If you feel that MKDP hasn’t complied with FCA regulations, you can make a complaint. The first step is to complain directly to MKDP. They will have an internal complaints process that will examine your claim and propose a solution.

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Can MKDP Debt Collectors Take Me to Court?

Debt collection agencies do have the power to take you to court if you refuse to pay the debt. However, they will make reasonable attempts to recover the debt with you directly before involving the courts (remember, their goal is to make a profit on the debt collection process and court fees are steep).

But before they can threaten court action, they will first send you a warning letter which should give you time to pay the outstanding debt. The most common form of warning letter is a default notice.

A Default Notice

A default notice is sent when the debt collection agency has begun the process of cancelling your account. Once this has been issued, you’ll have two weeks to make arrangements to pay any outstanding balance before your account is considered defaulted and they escalate the case to court.

A Claims Form

If the debt still goes unresolved, MKDP Debt Collectors will issue you with a claims form. This informs you that court action is being considered to recover the debt. You’ll then need to fill out the form and return it or contact MKDP directly to stop any further action and settle the debt.

A County Court Judgement

Once you’ve been taken to court, MKDP will apply for a County Court Judgement which will compel you to pay off the debt. This usually involves a monthly repayment but this is at the discretion of the debt collection agency.

Can MKDP Debt Collectors Repossess My House?

It is highly unlikely that your house will be repossessed by MKDP. However, once a County Court Judgement has been issued, the debt collectors can file a Charging Order. This would secure your debt against your home.

If the debt is still not paid, your house can then be repossessed to pay the outstanding debt. Don’t panic about this though, there are many steps that must be taken before this point and it is usually only applied for if the debt amount is significant and warrants the sale of a house.

MKDP Debt Collectors are Harassing Me, What Can I Do?

Although you may receive several letters and phone calls from MKDP Debt Collectors, this isn’t considered harassment. They do have the right to contact you in attempts to recover the debt.

Since MKDP ltd is an umbrella company which covers several different companies, it’s best to make a complaint to the specific firm on the letters you receive.

You can make a complaint using the following channels:

Post: MKDP Debt Collection Agency, Trade Pro House, Seebeck Place, Knowlhill, Milton Keynes, MK5 8FR, United Kingdom

Phone: 01908693571

MKDP LLP Debt Collectors Contact Details

Website: http://www.mkdp.org.uk
Phone number: +44 (0)1908 254321
Email: email form
Address: Milton Keynes Development Partnership LLP
Civic Offices 1 Saxon Gate East, Milton Keynes MK9 3HG

Other Debt Collectors 

You should check for more outstanding debts that you may have with other companies or debt collectors. Here are four steps you could take: 

  1. Check your credit report for other defaults 
  2. Check your email and post for reminders or overdue notices
  3. Check the court records for CCJs against you
  4. Check your bank statements for the names of other debt collectors 

There are hundreds of debt collectors in the UK and each works with different companies to collect debts.

For example, Cabot Financial have been known to collect for the DVLA while Lowell Financial and PRA Group buy debts from various credit card companies like Barclaycard.

If you see a name on your bank statement that you don’t recognise then you can search MoneyNerd to see if they’re a debt collector. 

If you’re not satisfied with the outcome of their complaints process, you’ll be eligible for an independent ruling from the Financial Ombudsman Service.

Could you legally write off some debt?

Answer below to get started.

How much debt do you have?

This isn’t a full fact find, MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.

The authors
Scott Nelson Profile Picture
Author
MoneyNerd’s founder, Scott Nelson, has a decade of financial industry experience, including 6 years in FCA regulated loan and credit card companies. Troubled by a lack of conscience in the industry, he founded MoneyNerd to give genuine advice to those in debt and struggling financially.
Janine Marsh Profile Picture
Debt Expert
Janine Marsh is an award-winning presenter and a valuable member of the MoneyNerd team. With a wealth of experience as a financial expert, she's been featured on BBC Radio 4, BBC Local Radio, and BBC Five Live, and is a regular on Co-op Radio.
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