The Process of Debt Collection and Solicitors’ Letters

You may be receiving letters from solicitors once you missed debt payments. This happens if you get default notices. If you have been contacted by solicitors, it would mean that you are in serious debt. However, when this happens to you, you don’t need to panic as it does not entail that you’ll be going to court straight away.

Solicitor Sending Me Letters

There are certain reasons why a solicitor may contact you regarding your debts. Below are some of it:

  • Some solicitor companies serve as debt collection agencies. This occurs when your debt is bought by the company. One way to determine if your debt is sold to a debt purchaser is when the letter asks you to pay the solicitor company and not your original creditor. When your creditor employs the solicitor to collect their debts, the letter will tell you to pay your debts to your original creditor.
  • Your solicitor may also be employed under the collection department of your creditor through another name. You may scrutinize the letter and check the fine prints if it states the name of your original creditor. You may also try to check for the address and see if it’s similar. This is commonly the method adopted by most creditors and banks before. However, this hasn’t been practiced anymore since it can mislead the debtors.
  • Creditors usually utilize the service of solicitors when they are in an attempt to take your case to court. This is rarely in practiced and one thing for you to distinguished is when you receive a letter of claim via post which will be followed by court forms later on.

How Solicitors Collect Debt

A solicitor cannot exert more effort than what your creditors can. This means they can only request for payments by contacting you over the phone or sending letters. They do not have legal powers such as bailiffs or Sheriff Officers.

Moreover, a solicitor can impose additional charges and interest on your debt and can take your case to court. This is uncommon though in practice. Besides, a solicitor is bound to implement the standards from the Financial Conduct Authority. These set rules are the same guidelines followed by your original creditor when recovering debts that are controlled by the Consumer Credit Act. An example of these debts are:

Solicitors are also regulated by the Solicitors Regulation Authority. This imposes set rules and guidelines on how they have to conduct their duties and responsibilities. So, if you believe that a solicitor is already harassing you, you can file a complaint against them.

What to do If I am contacted by a solicitor?

If you receive letters or calls from a solicitor, you do not need to worry about getting your own solicitor nor send the letters that you got to us.

This can only mean that you need urgent debt advice to guide you on how you can deal with your current financial circumstances. Call us right away so we can help you gain control over the situation.