Notice of Debt Recovery – What You Need To Know
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.
Receiving a ‘Notice of Debt Recovery’ letter can be a worry. But don’t fret; we’re here to help. With over 170,000 people visiting our website each month for advice on such matters, it’s safe to say that you’re not alone. We understand that it’s a tough spot to be in.
In this article, we’ll explain:
- What a ‘Notice of Debt Recovery’ is and who sends it.
- Steps to take if you receive one.
- How to check if the debt is yours.
- Ways to deal with the debt, including paying it off or writing it off.
- What to do if the debt isn’t yours.
Our team has a deep understanding of debt and recovery notices, as many of us have been in a similar situation. We know it’s not easy, but we are here to guide you. Let’s dive in and explore how you can best respond to a ‘Notice of Debt Recovery’.
Who Sends a Notice of Debt Recovery?
The more agreeable definition of a notice of debt recovery is the one sent by the people chasing you for the money, rather than any court bailiffs.
That means the people who send a notice of debt recovery letter are those to whom you owe the money directly. Examples include:
- Landlords and letting agents
- Utility companies
- Loan providers
- Credit card issuers
You might also be sent a notice of debt recovery by a group working on behalf of the company you owed the debt to, known as a debt collection agency.
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.
Sometimes, these agencies even buy the debt from other companies, meaning you owe them the money instead.
Look out for debt collection scams!
» TAKE ACTION NOW: Fill out the short debt form
Send a Prove the Debt Letter
You might feel like ripping up the letter and putting it in the bin, but it is much better to respond to their claims and request proof that you owe the money (even if you know what debt they are talking about).
The reason for this is simple. Debt collectors must provide evidence that you owe the debt before asking you to pay it.
It is not enough to simply say you owe it. They must send you a copy of an agreement you have defaulted on to ask for the payment.
You can request this proof in a prove the debt letter. The good news is these letters have already been written for you. Just add some personal details and pop it in the post.
We recommend using tracked delivery and keeping a record of the letter and proof of posting, in case they take you to court.
After You Send the Letter
After you send the prove the debt letter, the people chasing you for money could do one of many things:
1. They might not reply
If they don’t reply, then it may be the case that they don’t have proof, send the notice of debt recovery letter to the wrong person, or it was a scam.
2. Ignore future notice of debt recovery letters
They may continue to request payment without acknowledging your request for proof. Or they may not send adequate proof. In this case, retain evidence of your prove the debt letter, and you can ignore their notice of debt recovery letters.
If you really wanted to, you could threaten them with a complaint to the Financial Ombudsman for continual harassment (or even make a real Financial Ombudsman complaint)
3. Pay the debt
If they respond with good evidence that you owe them money, you should look to pay the debt. If you can pay it off in one payment, this is advisable.
For larger debts, you might want to consider a debt settlement offer and pay the debt without paying it all back.
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.
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When You Shouldn’t Send a Prove the Debt Letter?
There is one time when you don’t need to reply to a notice of debt recovery with a prove the debt letter. This is when you know your r debt is not legally enforceable because it is Statute Barred debt.
Many debts that are more than six years old do not have to be repaid.
In these cases, send a Statute Barred letter instead. Templates of these letters can be found on UK debt charity websites (e.g. StepChange).
Can I Ignore a Notice of Debt Recovery?
Even if you are confident there has been a mistake, it is not advisable to ignore a notice of debt recovery letter.
There is a way you can respond to these notifications by using the law to your advantage.
How to Respond to a Notice of Debt Recovery
We have put together a simple plan to help you respond to a notice of debt recovery from anyone. Follow these tips to get it right:
