TBI Financial Services Ltd Debt Collectors – Should You Pay?

Have you got a letter from TBI Financial Services Ltd Debt Collectors? You may be concerned and wondering what to do.

Don’t worry; we’re here to help. Each month, over 170,000 people visit our website for advice on dealing with debt. 

In this article, we’ll discuss:

•  Who TBI Financial Services Ltd are.
•  What to do if you can’t afford to pay.
•  How to deal with your debt.
•  Ways to possibly write off some of your debt.
•  How to get professional advice.

We know it’s hard to figure out where the debt has come from or if you should pay it. That’s why we’ve prepared this guide that will help you figure things out.

How to deal with your debt

The first thing that you need to do when you receive a letter from TBI is verify the debt. This means that you need to respond to them and ask for proof that the debt is yours – you don’t want to pay for a debt that you don’t have to!

The easiest way to ask for proof is to write to them. You can use my free ‘prove it’ letter template as a guide.

You are under no obligation to pay for a debt that can’t be proved to be yours.

Statute-barred debts

From my experience, not a lot of people know that there is a statute of limitations on debts.

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. 

If your debt is statute-barred, you can use my free letter template to write to TBI Financial and explain the situation.

If you are unsure about the status of your debt, you can contact a debt charity for some professional debt 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

Can I ignore TBI Financial?

No, don’t ignore TBI Financial, especially if you know that you owe the debt!

The legal consequences of ignoring your debts far outweigh any potential positives that you think you’ll gain. Apart from anything else, TBI Financial can add administration fees and other charges for as long as you ignore them. This can quickly ramp up your debt!

If you are in this type of situation, I recommend speaking to a debt charity. They will be able to advise you on your best next course of action.

What if I Can’t Afford to Pay TBI?

If you have debts that you can’t afford to pay, you may need to consider a debt solution.

There are several different debt relief options available in the UK, so I recommend speaking to a debt charity for some debt counselling 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 that offer these advisory services for free below.

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.

See my debt options overview page outlining all your possible debt options and pros and cons of each.

TBI Financial Services Ltd Contact Details

How do I Complain About TBI Financial?

If you think that TBI Financial 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.

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

Thousands have already tackled their debt

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Staying On Top Of Your Debts

One of the hardest parts about being in debt is that the industry isn’t at all transparent.

One common tactic used by Debt Collectors is contacting you under multiple names and addresses.

Sometimes, it’s for practical reasons, but even then it can be confusing and intimidating. So it’s important to try to keep a level head and research what’s going on. 

Some of the biggest debt collectors in the UK operate under multiple names. 

• Robinson Way will sometimes contact you under the name Hoist Finance. 
• Cabot Financial Group recently bought Wescot Credit Services
• Credit Style communicate as both Credit Style and CST Law. 
• Lowell Financial also owns Overdales and collects debts under both names. 

In fact, in the case of PRA Group, they’ve been known to use multiple company names. As you can see in the image below.

If you’ve been contacted by a debt collector recently, it’s worth going through your post and emails to check that you haven’t missed anything, just in case they’ve started writing to you under a different name.

References

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

CONC 7.9 Contact with customers