Personal Debt Collection Tips ✔️
Personal Debt Collection
There are many reasons why private individuals may be owed money.
For instance, they might have loaned a friend or family member some funds to help with something.
Another reason could be that they have privately provided goods or services to someone, for example, performing freelance work.
Regardless of the case, people frequently require the use of a personal debt collection agency to recover any money they are owed.
Personal Debt Collection – How to Collect a Personal Debt
If you have loaned money to others in good faith which they promised to pay you back for, it is only natural that you would want to be repaid.
Most likely, a promise of payment will have been broken by the person who owes you money. At this point, a boundary has been crossed. The debtor has demonstrated a lack of respect and courtesy towards you.
Although this may seem like a drastic statement, consider the fact that you have acted in good faith and are now been taken advantage of.
Whilst you may be hesitant to confront the person who owes you money initially, don’t forget that you readily offered them funds when they requested them. It’s completely correct and appropriate to want them back.
If this sounds familiar, it is time to consider your options regarding personal debt collection.
Understandably, many people who are owed a personal debt are upset and angry. However, it is never advisable to hastily confront the debtor in an aggressive manner.
Personal debt collection is an emotive exercise and needs to be conducted with caution and care.
If things become unpleasant or aggressive at an early stage such as this, inappropriate actions can make any future relations untenable.
Even worse than this, a criminal complaint can be made against you by unscrupulous people, using this as a shield against paying what they rightly owe to you.
This is not an uncommon practice amongst debtors, many of whom will go to the ends of the earth to avoid paying their dues.
Most personal and private arrangements are done casually, and it is uncommon to have any type of documentation you would normally associate with commercial debt collection present.
However, a common factor for matters concerning personal debt collection is that a proposed payment schedule has not been paid.
You should not wait or ‘put off’ any personal debt collection task. In the UK, there is a 6-year time period where a debt can be collected, known as ‘Statute Barred’. If no communication is made within this time period between the debtor and the person owed money, then the debt can no longer be collected.
However, if any communication which acknowledges the debt’s existence is made by the debtor within this time period, the 6-year limit is reset.
Our team of debt collection experts have prepared a guide to help you with recovering a personal debt collection.
The first and best thing to do when owed personal debt is to remain calm and control the moral high ground. Yes, you have been wronged, but if the discussion over repayment descends into an argument, it may make things worse.
Every personal debt collection process begins by sending a polite reminder to the person that owes you money.
If you have any facts relating to the personal debt, such as the dates, amounts and their obligation to you, this should be a part of this reminder. It is also appropriate to ask if there has been some confusion over dates, amounts or promises.
Remember – it is important to word this in a polite, innocuous tone. Being overly stern or aggressive at this point could create a problem. After all, there may still be a reasonable explanation as to why the debt has not been paid yet.
For instance, the debtor may simply have forgotten or misunderstood the due date, but never-the-less is still ready to pay you. In this case, a polite reminder would prompt them to pay, resolving the matter amicably.
Send a Letter
The next step is to send a letter to the debtor.
Draft a letter that provides details on the specifics relating to the owed debt, as well as the total cash sum that is due. If you have already sent a polite reminder, you may want to re-state what was mentioned then too.
It is important to include the terms of repayment which were originally made before the money was loaned.
To ensure that the message is delivered properly, you may either hand serve it or send it via recorded delivery. The Royal Mail provides recorded delivery, and you will be able to check precisely when the letter has arrived with your debtor.
The advantage of this is that a debtor cannot feign ignorance and pretend a letter has not arrived, as you will have evidence that it has done so.
Draft a letter recounting the particulars relating to the debt owing and the cash sum due.
Make a Phone Call or Send A Text
As well as sending both a polite reminder and a letter, it is a good idea to attempt to engage the debtor by calling them on the telephone or sending an SMS text message.
Don’t forget, it is very realistic that they may have simply missed the previous reminders. If they have somehow missed the previous reminders. This is why it is critical to maintaining a calm and professional approach, despite any personal frustrations you may be feeling.
Any contact made like this should remind and alert the debtor of their financial obligations to you.
Hiring an Agency for Personal Debt
In the event that the reminders you send to the debtor are ignored or are unsuccessful, the best option is to speak to a professional personal debt collection agency.
Whilst this may seem like a drastic option, it is absolutely the best way of recovering your money in a timely manner. More time (and money) invested in recovering the debt independently will probably be wasted, therefore increasing the amount of money you are out of pocket.
A specialist Personal Debt Collection Agency such as Frontline Collections can assist you with progressing the matter forward.
In most cases, the intervention of a Professional Debt Collection Agency will trigger a reaction and help expedite a resolution.
Personal and Business Debt Collection in the UK is now more complex than ever and it will mitigate your liability to speak to a dedicated Professional today.
Ignorance is not an excuse in the eyes of the law so it is always better to use a service from accredited debt collection experts.