Hi.

Normally the financial institution(s) who you’ve had financial difficulties with will give you up to 6 months to get everything back on track. 

If after this period things are still no better then the debt is passed over to a credit collection agency. You may already know some of them e.g. Blair, Oliver & Scott or Career Development Finance.

I have found it rare to be notified by the financial institution that the debt has been passed across.

Normally, the CCA’s will contact you in writing to advise you that they have now taken over the debt. It is best to call them to discuss/confirm payment options. They will normally request you complete a financial statement that details all your income & expenditure. 

A word of caution – some CCA’s will ask for further information such as payslips BUT do not agree to this!! All the CCA’s are entitled to is an income/expenditure sheet and no more!! These are just some of the scare tactics used by some (but not many thankfully) of the CCA’s around.

Once you have agreed your weekly/monthly payment with the CCA make sure you ask them to confirm the agreement in writing. I would also advise that you always follow up any phone call to the CCA with a letter confirming any agreements made during said phone calls and always ask the CCA to confirm in writing anything the agree/request with you.

I know this sounds a little over the top BUT trust me when I say you’ll if you don’t do this and find yourself at odds with the CCA then you’ll find it impossible to prove you are in the right without evidence!! 

Stick with the above and you’ll do ok. If you have any questions on debt management or would like any advice then please let me know.

Regards

Alex Fyfe.