Debt Managers Ltd: Do I need to repay these debt collectors?

Debt Managers Ltd is a prominent debt collection company in the UK, known for its role in helping clients recover outstanding debts. However, navigating the process of dealing with a debt collection company like Debt Managers Ltd can be overwhelming for many.

In this article, we’ll provide some insights into who Debt Managers Ltd are, what you should do if they contact you, share some effective debt management strategies, and offer guidance on what to do if you find yourself unable to afford the repayment of debts owed to a debt collector.

Who is Debt Managers Services Ltd?

Debt Managers Ltd is a debt management company based in the UK, with over 40 years experience in the UK credit industry.

Founded in 1976, the company focuses on recovering outstanding debts on behalf of clients. The firm was acquired in 2013 by Secure Trust Bank PLC, a fast-growing UK bank with more than 60 years of operating history.

According to their website, the acquisition allows Debt Managers Ltd to provide effective debt management solutions on the ground, while benefiting from the support and infrastructure of an established financial institution.

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What kind of debt collection does Debt Managers Ltd focus on?

While the specific types of debts that Debt Managers Ltd collects for are not specified on their website, as a collections agency, they have the capability to handle various types of debts.

Collections agencies like Debt Managers Ltd typically purchase debts from different sources and legally pursue their collection.

Common types of debts that collections agencies deal with include council tax arrears, parking fines, benefit overpayments, loan payments, credit card debts, telephone bills, online water account bills, and utility account bills.

Additionally, they may also chase outstanding payments and act as a representative for other companies to recover debts.

Where are Debt Managers Services Ltd based?

Debt Managers Services Ltd is based in Solihull, West Midlands, with their registered office located at the address below:

One Arleston Way, 

Solihull, 

B90 4LH. 

Debt Managers Ltd are registered in England and Wales under the registered company number 8092808.

Are they a regulated debt collection company?

Yes, Debt Managers Ltd is a regulated debt collection company.

Consumer Credit Act

Debt Managers Ltd are authorised and regulated in England and Wales by the Financial Conduct Authority (FCA), which is the regulatory body responsible for overseeing financial services firms and ensuring they operate in compliance with relevant laws and regulations.

Debt Managers Ltd’s authorisation and regulation by the FCA demonstrate that they’ve met the necessary requirements to operate as a debt collection company in the UK, specifically in relation to accounts formed under the Consumer Credit Act 1974.

Being regulated by the FCA is a means of ensuring that Debt Managers Ltd follows prescribed practices and guidelines in their debt collection activities, promoting fair treatment and protection of consumer rights.

Why am I being contacted by debt collection agencies?

Debt collection agencies like Debt Managers Ltd typically buy debts from the original creditor and then take on responsibility for collecting it.

They could be reaching out to you because you owe money on an original credit agreement that has since been sold to the collection agency. These agencies can also act as intermediaries, facilitating communication between the creditor and debtor regarding the debt.

It is important to engage with debt collection agencies responsibly, seeking clarification and exploring options for repayment or resolution.

How should I handle debt owed to Debt Managers Ltd?

When handling debt owed to Debt Managers Ltd, it’s crucial to approach the situation in a responsible and effective manner. Here are some steps to consider:

Ask for proof that you owe money

Before acknowledging or making any payments, it’s important to ask Debt Managers Ltd for proof that you owe the money. When the debt collection process is about to begin, you should receive advanced notice in the form of a debt letter.

This document should provide detailed information about the debt, including the original creditor, the amount owed, and any relevant account numbers. Verifying the legitimacy of the debt is essential to ensure that you are responsible for the outstanding amount.

Repay money owed upfront

If you have verified that the debt is valid and you are in a position to do so, you may choose to repay the money owed upfront.

Contact Debt Managers Ltd to obtain the necessary details, such as the reference number, to ensure that your payment is correctly allocated to your account.

Paying the debt in full upfront can help resolve the matter promptly and potentially save you from additional interest or fees.

Arrange a payment plan

If paying the debt in full upfront is not feasible for you, it’s important to discuss alternative arrangements with Debt Managers Ltd.

Contact them to explain your financial situation and explore the possibility of setting up a payment plan.

A payment plan allows you to repay the debt in affordable installments over an agreed period of time. This approach can help you manage the debt while meeting your other financial obligations.

Will Debt Managers Ltd come to my home?

Debt collection agencies like Debt Managers Ltd have the right to visit your home in the UK under certain circumstances. However, it’s important to note that there are specific rules and regulations that govern their actions.

They must conduct themselves in a fair and respectful manner, following the guidelines set out by regulatory authorities. They are not allowed to use aggressive or intimidating tactics, harass you, or disclose details of your debt to others without your permission.

If you are contacted by a debt collector at your home and you believe they have acted inappropriately or violated regulations, you can report their behavior to the appropriate regulatory bodies, like the FCA or Financial Ombudsman Service.

Can debt collection companies take legal action against me?

Debt collection companies do have the option to take legal action against you if you fail to repay your debts.

One of the most common legal avenues available to them is filing for a County Court Judgment (CCJ).

County Court Judgement (CCJ)

A CCJ is a court order available in England and Wales. A CCJ will state that you owe a specific amount of money, and outline the terms of repayment the judge has decided upon.

To obtain a CCJ, the debt collection company must first take your case to court and provide evidence of the debt owed. If the court finds in their favour, a CCJ will be issued against you, making the debt legally enforceable.

This means that the debt collection company can take further action to recover the debt, such as instructing bailiffs to seize your assets, garnishing your wages, or freezing your bank account.

What should I do if I can’t afford to repay what I owe?

If you find yourself unable to afford to repay what you owe, it’s important to take proactive steps to address the situation:

Don’t ignore the debt collector

Ignoring the debt and avoiding communication will not make the problem go away. Stay in contact with the debt collector and keep them informed of your financial situation.

Seek professional debt advice

Reach out to a reputable debt advice service to discuss your circumstances. Debt advisors can provide guidance tailored to your situation, help you understand your rights, and explore potential options for managing your debt effectively.

Consider using a formal debt solution

Depending on your circumstances and the amount of debt you owe, it may be worth considering a formal debt solution.

This can include options such as an Individual Voluntary Arrangement (IVA), Debt Management Plan (DMP), or Trust Deed. These solutions can help you negotiate affordable repayment plans or, in some cases, write off a portion of your total debts.

Where can I get help to protect myself from debt collectors?

If you find yourself being contacted by debt collectors, it’s important to take any enforcement action seriously and seek advice – ignoring or failing to respond to the debt collection process can result in more severe consequences.

If you are unable to repay the debt, the best course of action is to seek professional advice. That’s where Creditfix can help. As one of the UK’s leading debt management companies, our advisors can help you understand your options and potentially negotiate a repayment plan.

For reliable debt help and more information on how we could help you regain control of your finances, get in touch with us today.