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Trace Debt Recovery – Should You Pay? 

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By
Scott
Scott Nelson Profile Picture

Scott Nelson

Managing Director

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.

Learn more about Scott
&
Janine
Janine Marsh Profile Picture

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.

Learn more about Janine
· Feb 27th, 2024
Could you legally write off some debt? Answer below to get started.

Total amount of debt?

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.

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.

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Trace Debt Recovery

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.

Are you puzzled by a letter from Trace Debt Recovery and wondering what it all means? You’re not alone! Many people find themselves in your shoes. In fact, over 170,000 people visit our website each month for advice on dealing with debt.

In this guide, we’ll cover:

  •  Who Trace Debt Recovery are and why they might be contacting you.
  •  What steps you can take if they are chasing you for money.
  •  Whether you should pay or ignore their letters and calls.
  •  What happens if you can’t afford to pay.
  •  How to handle this situation in a legal and safe way.

We understand how you feel, as research shows that 64% of UK adults find interactions with current debt collectors stressful1. Don’t worry; we’re here to help you understand your rights and options.

Let’s navigate the world of debt recovery together.

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.

What should you do if Trace Debt Recovery writes to you?

Getting a letter out of the blue can be a challenge. However, you shouldn’t panic. By knowing your rights2 and the legal actions against debtors that Trace can take, you can resolve the matter without too much stress.

The first thing you’ll need to do when you receive a Trace Debt Recovery letter, is to confirm whether or not you owe the money they say you do.

You’ll likely have already had a parking fine through, as well as possibly some reminder letters.

If you’ve ignored correspondence from the original creditor (the company that issued the fine), they will likely have passed it on to Trace.

You may have to go back through your records to see whether you have any information about it.

In the letter, Trace should provide you with details of the original fine. Again, make sure that this matches up with your experience.

Once you have this information, it should make things easier when you contact them.

Your Rights With Debt Collectors

Understanding your rights when dealing with Trace Debt Recovery is important, as it can help you solve the issue in a simple way.

That’s why we’ve prepared this table that will help you understand what debt collectors can and can’t do. If you’d like to learn more, please check out our detailed guide.

Debt Collectors Can But They Can’t
Contact you by phone or mail. Call you after 9pm or before 8am.
Conduct home visits (on rare occasions) and knock on your door. Forbily enter your home, or stay if you ask them to leave.
Threaten to take you to court by suing you for payment on a debt. Harrass you, including threats of violence, repeated calls and visits, or abusive language.
Negotiate a debt settlement. Tip: make sure to get this new arrangement in writing. Visit your workplace.
Access your bank account, but only after a court judgment has been made. Take anything from your home or threaten to do so.
Sell your debt. Speak to other people about your debt without your permission.
Contact you frequently. Keep doing so if you request that they reduce communications.

Should You Pay Trace Debt Recovery?

Not right away.

There are quite a few elements that affect the answer to this question. That said, we all have to pay our debts at some point provided we owe the money.

» TAKE ACTION NOW: Fill out the short debt form

However, if the debt isn’t yours or you think it was issued illegally, you can contest it. The important thing is that you have all the information you need to do so.

Follow our ‘prove it’ guide with letter templates and get them to prove that you owe the money.

If you definitely owe the money and can afford to pay it, this could be your best course of action.

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 are Trace Debt Recovery UK Limited reviews like?

There are a lot of forum posts about the debt collector.

That said, Trace Debt Recovery reviews are not very flattering. Most customers complain of scare tactics and rude customer service. The word ‘scam’ is used a lot.

However, there aren’t many comments about people actually having court action taken against them. On Google, the company gets a 3-star review from four reviewers.

Should You ignore calls and letters from Trace Debt Recovery?

In short, no – you shouldn’t ignore Trace Debt Recovery. They rarely contact you in error, and even if they do, ignoring them won’t make them stop.

Debt collection agencies are known for their persistence. Although they are allowed to be persistent, they cannot harass you.

Sometimes, this seems like a fine line, and we’ll cover this in more detail further down this post.

You’ll find that they will continue to contact you, and if they don’t succeed, they can escalate matters against you.

Our financial expert Janine 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.

Having debt is never easy, particularly when forceful debt collection agencies are involved. However, ignoring the matter isn’t going to resolve it, so you’re better off facing the matter head-on.

What action can Trace Debt Recovery take?

There are a number of steps Trace Debt Recovery can take.

Firstly, you need to know the actions they can take besides writing to you, calling you, and potentially visiting your home.

If they don’t hear from you, they can escalate matters.

And, as you’ll see on the Trace website, they have a ‘streamlined approach and robust route to court.’

So, what court action can they take? Below, we’ve outlined some of the methods they might use:

  • Add interest and charges to your account. However, these can’t be excessive.
  • Apply for a County Court Judgment (CCJ). This means the courts demand you repay the creditors. It will negatively impact your credit rating when Trace wins the case.
  • Apply to the courts and send enforcement agents (bailiffs) to your home. If the courts grant the order, bailiffs can take your possessions to recover what’s owed.
  • Issue a statutory demand. If you have debts over £5,000, they can take the first steps to make you bankrupt.

Obviously, none of these are ideal situations, as they can impact you in the short and long term. The sooner you deal with them, the less likely they are to take these actions

What if You can’t afford to pay Trace Debt Recovery?

There are a few options to consider if you can’t afford to pay Trace Debt Recovery. It’s important to remember you’re not alone. Many people have unaffordable debt these days.

It’s not easy facing up to the fact that you can’t pay your outstanding debts. Thankfully, there are some ways that can help you deal with the situation.

The first thing to do is to contact the creditor or debt collection agency to explain your situation.

They’re likely (although not obliged) to accept any debt repayment plans you suggest. So, although you can’t repay the full amount at once, you might be able to make instalments to settle what’s owed. You might also want to consider something like a debt management plan or debt consolidation loan.

These can help you make affordable monthly payments and work towards paying off all of your debts at once.

However, before committing to a debt solution, we suggest you contact one of the leading UK charities that provide free debt advice.

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.

Get started

Reviews shown are for The Debt Advice Service.

Can You write off debt from Trace Debt Recovery?

Yes. It may be possible to write off certain debts, although only in very specific situations.

For example, you could apply for an individual voluntary arrangement (IVA). Essentially, this combines all of your debts and means you repay a fixed amount over 5 years (60 months).

At the end of that period, anything remaining would be written off.

You should also check if the debt is statute-barred.

If the debt is more than six years old and you’ve not heard anything about it until now, and haven’t made a payment or received a CCJ, Trace may not be able to reclaim it.

That said, the rules about statute-barred debts differ depending on the type of debt. For example, some debts owed to the government don’t fall under the Limitations Act.

We suggest you seek debt advice from a debt charity.

Can You make a complaint against the Trace Group?

Yes, you have every right to make a complaint.

However, you need to follow the right process by phoning the company on 0333 577 4447. They have to acknowledge this and make an attempt to resolve it. If they don’t, you can escalate the matter to the Financial Conduct Authority (FCA).

Trace Debt Recovery Contact Details

Address: Trace Debt Recovery UK ltd, PO Box 1448 Northampton NN2 1DW
Phone number: 0333 577 4447 (Contact Centre)
03300 080 477 (24 hour automated payment)
Trace Debt Recovery Complaints: 0333 577 4447
Operating hours: 9am to 5pm, Monday to Friday
Email: [email protected]
Website: https://thetracegroup.co.uk/

FAQs

Will Trace debt recovery take me to court?
Yes. If you continue to not pay any outstanding debt you have then Trace debt recovery will take you to court in pursuit of a CCJ in order to get you to pay.
What is the difference between debt collection and debt recovery?
The difference between debt collection and debt recovery is who is trying to retrieve the debt. With debt collection the creditor is chasing the debt themselves, with debt recovery a third party is normally involved.
How long can debt be chased UK?
6 years. A collector has 6 years to get in touch with you regarding a debt. After this period a debt is no longer enforceable.
Can debt collectors see your bank account balance?
No. Debt collectors cannot see your bank account balance but they have ways of knowing if you continue not to make payments following a CCJ.
Can I be chased for debt after 10 years UK?
Yes and No. After 6 years of not trying to retrieve a debt, debt collectors can no longer chase the debt. However, if they have ever take out a CCJ against you, there is no time limit for chasing the debt.
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.

References

  1. Indebted Debt Collection Survey
  2. GOV.UK Consumer Rights
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.