Frequently Asked Questions
Below are answers to our most frequently asked questions about our private debt collection services.
How does beginning the personal debt collection process work?
If you would like to collect on personal debt, it is advisable to send a letter before action that acts as a final reminder. This should inform the individual of the amount owed to you, and that further action will be taken if the payment is not made.
This can sometimes have the required result, but if it does not, be prepared to escalate your efforts by contacting a trusted debt recovery agency.
How does escalating the situation work?
If there is no response to the letter before action or the debtor does not make payment, you can seek professional assistance to remedy the matter. This is normally via a personal debt collection agency specialist or a law firm.
What are the legal guidelines for debt collection?
For personal debt collection, it is recommended to follow the legal guidelines set out by the Financial Conduct Authority (FCA). According to FCA guidelines, the debt collection process must be fair, transparent, and non-menacing. Federal Management is highly accredited, meaning that we only follow the most ethical and lawful procedures.
How does your personal debt collection process work?
At Federal Management, our bespoke strategies include phone calls, letters, visits and, if needed, legal action.
Phone calls and letters are sometimes the first steps before legal action. Some collectors only send an email, but any steps involve debt collectors contacting debtors to inform them of their liabilities and requesting payment.
Our private debt collectors use various trusted techniques to encourage debtors to make payments. They may offer payment plans or negotiate settlements in the creditor’s interest.
Disputes may arise during the debt collection process, and our debt recovery professionals are highly trained in all possible scenarios.
Our debt collectors have a straightforward complaints process in place. This allows the debtor to raise any issues and provide a clear solution for resolving these disputes.
You may have to pursue legal action if all other attempts to recover the debt have failed. This may involve issuing a county court claim form, obtaining a county court judgment, or having our high court enforcement officers take action to recover the outstanding debt.
However, court proceedings are usually a last resort, as legal action is costly. Fortunately, most cases are settled without court action, and we work hard to avoid the need for a costly personal debt recovery solicitor and a county court judgment.
How much does personal debt collection cost?
Our inclusive service is a fixed fee based on the value, age and complexity of the debt. We are a results-driven service, meaning there are no costs to be paid if we do not collect!
There is a small commission to be paid from successfully recovered funds. We offer competitive rates on all our services so you can sit back and remain stress-free.