Your Debt Recovery Questions Answered

Firstly, we would like to thank you for all of your questions regarding credit management and debt. Your response has been overwhelming and so we will continue to post questions and answers for the next few weeks. If there are any questions that we have not answered on debt recovery or credit management then please don't hesitate to tweet, facebook or email us.

Q. What are the different stages of the debt recovery?

A. There are three stages of the debt recovery process which are pre-legal, legal and enforcement.

Q. What do each of these stages involve?

A. The first stage is pre-legal which takes 28 days to complete. If the creditor is owed money and the payment is overdue, a first letter is issued stating payment is required within the next 7 days. After those 7 days, if no payment has been received, a second letter is sent giving a further 7 days to make payment. After this 14 day period, if the debtor still has not made payment, a letter before action is issued giving the debtor 14 days to pay before legal action is pursued.

The second stage of this process is legal action. This is where a judgement is sort against the debtor through the courts. If it is successful and judgement is granted, then enforcement can occur. However, if it is disputed by the debtor, the case is passed to a legal team for appraisal and assistance in gaining the judgement.

The final stage is enforcement which occurs if judgement from the legal process is granted. This consists of a number of options such as enforcement through the courts via attachment of earnings or third party debt orders to name a few. The most favourable option is for the judgment to be transferred up to high court for enforcement by High Court Enforcement Officers.

Q. Why is your company different to all the others in regards to debt recovery?

A. By having our own sheriff and in house legal team, we can pride ourselves on being the only company who complete the pre-legal, legal and enforcement stages all under one roof. By offering this service, it allows the client feel confident and secure in the notion that from initial take on to enforcement, one company will be involved in the recovery of their debt.

If you have anymore questions or any experiences that you would like to share with us, contact us on any of the addresses below:-

Twitter: @icepacc
Facebook: http://facebook.com/ICreditEnforcement
Email: info@icreditenforcement.com

OFT launches probe into payday-loans industry

The payday-loans industry - which makes short-term loans to those unable to get credit from banks - is being investigated by the Office of Fair Trading.

It will examine 50 major payday lenders and accusations that these high-cost, short-term lenders are irresponsible, handing out loans without checking whether borrowers can afford to repay them.

It will also look into evidence that suggests payday loan firms target the vulnerable, such as the unemployed or those on benefits.

Finally it will focus on the practice of rolling over loans, so that those who don't repay on time quickly end up with unaffordable rising debt.

David Fisher, OFT director of consumer credit, said: "We are concerned that some payday lenders are taking advantage of people in financial difficulty."

Joanna Elson, chief executive of debt charity the Money Advice Trust, said: "Payday lenders are aggressive in how they collect debts, often refusing to listen to proposed repayment plans and demanding full and final settlements that represent huge profits for the payday lender based on the money originally given out."

Courtesy of:Simon Reid / 24th Feb 2012 / London Evening Standard