Creditors Advice & help | Fresh Start UK

What are creditors?

Any person, organisation or government body that is owed money is a creditor, having provided goods and services to a separate entity. It is possible that interest will be charged on money, whether that’s on credit card payments, bank loans or something else.

If you fall behind on debt repayments, it’s likely that your creditors will take action to get you to settle your debts. They typically contact debtors by letter or phone, or they may visit you at home.

Key facts about creditors

Letters are the main way creditors get in touch if you miss payments. Open these letters immediately

Contact can become more aggressive and threatening as time goes on

Accounts are often passed to the collection department after just a few reminders

You may be served with a default notice and then receive letters from debt collectors

Keep a record of all letters and other communication from creditors for future use

What creditors can do

CCJs (County Court Judgements)

Court action can be taken to get a county court judgement against you to get you to pay back what you owe
Judgement records are kept for six years unless the full amount is paid within a month
If you can’t afford to pay the money owed, you can ask to vary the terms of the judgement and/or pay it back in instalments
If you receive a judgement, don’t ignore it, as you could be taken back to court and forced to pay

May deduct money from your earnings

Creditors for bank loans, credit cards and so on can get a court order to take money from your wages
In order for them to do this, they must have already issued a CCJ against you
Contact your creditor immediately if they apply for an attachment of earnings order to see if you can agree to a payment plan
Consider seeking free and impartial debt advice

Take money from your bank account

Third party debt orders can be applied for that allow creditors to take the money owed to them directly from whoever has it
Creditors can also get insurance companies, solicitors and employers to pay monies to them if you’re due a redundancy settlement or receive an inheritance, for example
Typical debts include personal loans, credit cards, hire purchase agreements and overdrafts

How can debt management plans help?

Debts can be consolidated so you only have to make one single payment per month
The amount you pay is based on your disposable income, so you pay back what you owe at an affordable rate
We propose a repayment offer to your creditors which is affordable for you
Avoid taking further credit during your plan if possible, as this could risk you falling into further debt

What Bailiffs...

Court action can be taken to get a county court judgement against you to get you to pay back what you owe
Judgement records are kept for six years unless the full amount is paid within a month
If you can’t afford to pay the money owed, you can ask to vary the terms of the judgement and/or pay it back in instalments
If you receive a judgement, don’t ignore it, as you could be taken back to court and forced to pay

Creditors for bank loans, credit cards and so on can get a court order to take money from your wages
In order for them to do this, they must have already issued a CCJ against you
Contact your creditor immediately if they apply for an attachment of earnings order to see if you can agree to a payment plan
Consider seeking free and impartial debt advice

What Bailiffs...

Third party debt orders can be applied for that allow creditors to take the money owed to them directly from whoever has it
Creditors can also get insurance companies, solicitors and employers to pay monies to them if you’re due a redundancy settlement or receive an inheritance, for example
Typical debts include personal loans, credit cards, hire purchase agreements and overdrafts

Debts can be consolidated so you only have to make one single payment per month
The amount you pay is based on your disposable income, so you pay back what you owe at an affordable rate
We propose a repayment offer to your creditors which is affordable for you
Avoid taking further credit during your plan if possible, as this could risk you falling into further debt

What are your rights with creditors?

While creditors are allowed to contact you to collect unpaid debts, they must act reasonably and within the law when pursuing money for collection. Creditors have to take reasonable steps to ensure that they are treating their customers fairly when recovering any money that is owed.

The majority of creditors will operate within the law and will show understanding to their customer's circumstances but it may get to the point where you feel overwhelmed by the amount of contact you receive. In this instance, it could prove beneficial to seek independent and impartial debt advice to help you deal with your creditors.