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Debt collection process

If you fall behind with payments to your debts, your creditors will follow a collection process.

This is a typical example of what your creditors will do to collect an unpaid unsecured credit agreement.

Your creditors call you and send letters requesting you to pay the outstanding arrears. If you do not pay, these will become more threatening
The creditor may pass the debt to their own collections department who will also contact you and request payment of the arrears
The creditor may send a default notice if you miss a number of payments (usually between three and six) and if the debt is regulated by the Consumer Credit Act. If you cannot pay, the agreement is then cancelled
It is common for the creditor to sell the debt onto a debt collection agency at that point
A debt collection agency will send letters and phone calls to persuade you to pay a specified amount each month
The creditor can try to get a court judgment to force you to pay. In very rare cases they may even try to make you bankrupt

Free debt help

If you have already fallen behind with your existing debts and are having problems arranging payments with your creditors, we strongly advise you to seek our help.

Our online debt counselling service, CCCS Debt Remedy, will provide you with tailored debt advice and recommend the most appropriate way of dealing with your debt problem. Should you decide to go ahead with our recommendation, we can help with a variety of debt solutions including free debt management plans and IVAs.

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FAQs

What should I do if a creditor refers me to a company for debt advice?

Some creditors will offer to refer you to another organisation for debt advice. Remember that many debt management companies charge fees for providing debt solutions.

You can contact us for free and impartial advice at any time. You can use our online debt counselling service, CCCS Debt Remedy, which will provide you with the most appropriate solution to your debt problem. Alternatively contact our free Helpline on 0800 138 1111.

How many phone calls is a creditor allowed to make each day?

The Office of Fair Trading guidelines on debt collection state that a creditor cannot use phone calls to contact you “at unreasonable times and at unreasonable intervals”. If they do, you can make a complaint.

Many people believe there are some laws or guidelines stating that a creditor can only make a certain amount of calls each day. Unfortunately, no such guidelines exist, so a complaint should be based on what you believe is “unreasonable”.

Can I change or withhold my phone number?

Yes, you can change your number if you do not want to be contacted by phone. Your phone provider may charge you for this.

If you change your number, remember to withhold it when calling creditors to prevent them getting your new number using caller display. Dial 141 before entering a number to withhold your own number for that call.

There are other options available from phone providers which may be helpful, such as call-barring and caller display. These can give you greater control over who calls you, but there are usually monthly charges. Contact your phone company for more advice.

If you change your number, remember that you must open and read any letters. You should never ignore your creditors.