Shergroup Debt – Should You Pay

Are you worried about a bailiff from Shergroup Debt knocking at your door? You’re in the right place. Every month, over 170,000 people come to our website seeking advice on their debt problems.

In this article, we will guide you through:

• How to make sure the debt is really yours before you pay.
• What to do if Shergroup is enforcing a High Court order.
• Steps to stop Shergroup bailiffs from chasing you.
• Ways to manage or even write off your Shergroup Debt.
• What to do if you get a Shergroup debt collection letter.

We understand how scary it is to be chased by debt recovery companies such as Shergroup. Many of us have been in your shoes, and we’re here to help you understand your rights and find the best solution for your situation.

Let’s dive into what your options are.

Have you received a Shergroup debt collection letter?

The other type of letter you might receive from Shergroup Debt Recovery Solutions is a payment request. This is what debt collection agencies send out when they’re chasing debts for businesses. It comes under the umbrella of a cash flow service with Shergroup. 

But these letters don’t just request payment or ask for you to speak with them about payment plan options. They also threaten legal action if you ignore their letter, which can be scary. 

The letter is supposed to be scary because it’s designed to intimidate you into paying faster. Sometimes the legal threats are genuine and you may be taken to court if you don’t pay, and other times they’re empty threats. Unfortunately, it’s hard to know when legal threats are real or fake. 

The correct name for this type of letter is a Letter Before Action (LBA). And there are two ways you can deal with it without paying Shergroup straight away – or at all. Read on. 

#1: Request proof of the debt

Ask Shergroup debt collection agents for evidence that you owe the money, which should be a copy of the credit agreement you signed. This can slow down the process to buy you some time, and if it’s not supplied you may get away without having to pay. 

You can easily ask for proof of the debt by downloading our free prove-the-debt letter template. 

#2: Tell them the debt is too old

You won’t have to ask Shergroup debt collection agents for proof or even pay the debt if it’s too old to go to court.

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 will be enforceable for the duration of the CCJ. 

If your debt is statute-barred, you can use my free letter template to write to Shergoup and explain the situation.If you are unsure about the status of your debt, you can contact a debt charity for some advice. Their advisors will be able to look at the debt in question, determine its status, and advise you on your next steps.

» TAKE ACTION NOW: Fill out the short debt form

Should you pay Shergroup Debt Recovery Solutions?

If Shergroup Debt sends you a Notice of Enforcement letter, it’s advisable to make arrangements to pay the debt.

You will also have to pay Shergoup Debt Recovery fees on top of your debt.

These fees are generally quite similar, and some bailiff charges are even standardised. County Court bailiffs, for example, have set fees of £75 for a Notice of Enforcement and £235 if they have to actually enforce the debt.

Keep in mind that the enforcement fee can be a bit higher. Usually, they will charge an extra 7.5% of your debt if that debt is over £1,000.

This means that if you have a debt of £1,500 that you don’t pay, you will be charged:

• £75 for Notice of Enforcement
• £235 for Enforcement
• £112.50 for the 7.5% over £1,000.

Total: £422.50.

Can Shergroup enforcement come to my house?

Shergroup enforcement officers can only come to your home address if you have a debt that a judge has ordered to be paid and you haven’t done so. But before they can turn up, they must send you a Notice of Enforcement letter.

A Notice of Enforcement letter gives you seven clear days to pay or agree on a payment plan with Shergroup. If you don’t do either of these things, they have given you adequate notice to come to your home and try to recover the money or seize possessions. These possessions will be held for a short period to give you further opportunity to pay, but if you don’t, they will be sold at an auction to clear your debt. 

Are Shergroup High Court enforcement?

Shergroup’s debt collection agents do work for the High Court and can, therefore, enforce debts that are subject to an order to be paid by the High Court. 

How to stop Shergroup bailiffs

The only way to stop Shergroup bailiffs from coming to your home is when you’re a vulnerable person. Enforcement agents should not go to the homes of vulnerable people whether they are classed as permanently or temporarily vulnerable. 

Some examples of vulnerable people, in this case, could be:

1. Disabled people
2. Mentally disabled people
3. Single parents with children at the address
4. Pregnant women
5. People who don’t speak fluent English
6. Over 65 years old

Citizens Advice explains how you should be treated by bailiffs if you’re vulnerable, including alternative processes. They may give up chasing you for the money, even just temporarily. 

Can I ignore a CCJ?

Ignoring a CCJ, even if you think there’s been a mistake, is not a good idea.

If you just ignore a CCJ, fail to respond to the CCJ letter, or fail to make a CCJ payment plan will result in further action.

The court might send a bailiff to enforce the CCJ and collect the debt. Baillifs will inform you that they are going to visit 7 days in advance, but they will add fees to your debt. You might be able to make a repayment plan with the bailiff, but if you don’t or you don’t stick to the plan, they can take your belongings.

If you don’t let the bailiff in, they can’t force entry, but they might be able to take things that are outside, like your car.

But the court might not send a bailiff and might take money from your monthly earnings. They could also make you bankrupt if you owe more than £5,000, or take money from the sale of property.

The court can also compel you to go to a hearing. There you will discuss your income and how you can pay off the debt. You must go to this hearing or you can be imprisoned.

How can I avoid a CCJ?

You can avoid Shergroup Enforcement and other bailiffs by not getting a CCJ. To avoid a CCJ, you need to stay on top of your debt repayments.

But this isn’t always possible.

If you have noticed that you are struggling to pay your debts, you may want to consider a debt solution.

There are several different debt solutions available in the UK, so I 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.

I have linked a few charities offering these free advisory services at the bottom of this page.

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.

Thousands have already tackled their debt

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Shergroup Enforcement reviews

Shergroup Debt Collection has a number of positive reviews online, although these are mostly from creditors and claimants who have used their services to successfully get money off debtors. The debtors who have commented on their experience haven’t been so polite.

Here is a taster of both sides:

But if you’re the one being chased, the reviews aren’t quite as positive!

How do I complain about Shergourp?

If you think that Shergroup 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 High Court Enforcement Officer Association’s (HCEOA) Code of Best Practice.

Make your first complaint to Shergroup 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 HCEOA. They will investigate your complaint thoroughly and provide you with a report if your complaint is upheld. If Shergroup’s behaviour was very poor, they may be fined, and you could even be owed compensation.

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