Sonex Financial Debt – Should You Pay?

Have you received a surprising letter about debt from Sonex Financial? This can be a scary time, but you’re not alone. Each month, more than 170,000 people visit our website seeking advice on debt problems. 

In this article, we’ll help you understand:

•  What Sonex Financial is and who they work for.
•  How to check if the debt they say you owe is really yours.
•  Ways to stop Sonex Financial from chasing you too much.
•  How to set up a plan to pay back the money or even get some of it written off.

Unfortunately, nearly half of the individuals who deal with debt collection agencies have experienced harassment or aggression¹. We know it’s not easy.

But don’t worry; with our expertise, we’ll help you figure things out.

Should you pay them?

You might end up having to agree on a payment plan or paying Sonex in full. But before you make a payment or agree on a plan, there are some things you can try. Some of these things could result in you not having to pay a penny. 

If the debt is at least six years old, it might have become too old to be collected. Some older debts cannot be taken to court to prevent the courts from getting clogged up with older cases, which drain legal resources.

This is known as a statute barred debt. It doesn’t go away but you can never be taken to court and you can ask Sonex Financial to stop asking for payment. 

Alternatively, you can ask Sonex Financial to prove you owe the debt. They must then get a copy of the signed agreement you made with their client.

For example, if they are recovering a debt for an energy company, they may need the agreement you signed with them to supply energy – and your account details. You’re not obligated to pay if they don’t provide this evidence. 

“I think there has been a mistake”

If you believe there has been a mistake and Sonex Financial Debt Collection is contacting you instead of the real debtor, you should still ask them to prove the debt. If they have got the wrong person, they’ll soon realise it when they start looking for proof of the debt and a signed agreement. 

I have made it easy to ask for proof of the debt. Download the MoneyNerd prove-it letter template to save yourself lots of time. 

You can also use one of my free letter templates to tell Sonex that you think your debt is statute-barred.

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 the duration of the CCJ.

» TAKE ACTION NOW: Fill out the short debt form

They proved I owe the money

If Sonex Financial proves you owe the debt, you should probably make arrangements to pay. It’s possible that their client has no intention of taking you to court and getting a judge to make you pay. But there is no way of knowing for sure, and it’s a risk to assume they won’t. 

The good news is that Sonex Financial offer affordable payment plans to vulnerable people, whether you’re permanently classified as vulnerable or temporarily vulnerable. You should speak to them and see what plans are available, especially for those dealing with financial hardship.

How do they chase debts?

Sonex Financial will likely write you a letter to inform you that they are working on behalf of another company, such as an energy company. They will tell you that they want to recover an unpaid debt or arrears owed to that company. 

They will ask you to make the payment and tell you how you can do so. And they’ll also offer personalised payment plans if you have financial difficulty. You’ll need to call Sonex Financial Debt to discuss an individual payment plan that works for everyone. 

The company’s approach may be much less aggressive and intimidating than other debt collection companies, which will threaten legal action to make you pay in full quickly. However, Sonex Financial may still mention the possibility that their client could take legal action if you don’t engage with them. 

Typical Debt Collection Process

I’ve put together this table that will help you better understand the debt collection process. If you want to learn more about the key stages and actions involved, don’t forget to check out our detailed guide.

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I can’t afford to pay

If Sonex Financial has proved that you owe the debt, but you can’t afford to pay, you may wish to consider a debt solution.

There are several different debt solutions available, so I recommend speaking to a debt charity.

There are several debt charities in the UK that offer services for free, and I have linked a few at the bottom of the page. Their advisers will be able to walk you through your debt relief options in detail and find the best debt solution 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.

How do I complain?

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.

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

Sonex Financial Contact Details

References

1. Indebted Debt Collection Survey