Receiving a debt letter or phone call out of the blue can be an unnerving experience, especially if you’re not sure if they’re a legitimate company and you don’t know whether you should pay them.

However, if you’ve been contacted by BPO Collections, it likely means you have an unpaid debt and the company you owe money to has passed the debt onto them to recover payment on their behalf.

This guide will provide more information on BPO Collections, such as who they are, what you should do when they contact you, and where to get further advice about dealing with your unpaid debt.

Who are BPO Collections Ltd?

BPO Collections Limited (or BPO Debt Collections) is a well-established debt recovery company formed in 2006 that recovers unpaid debts on behalf of a number of government, retail, and utility companies. According to the BPO Collections website, the company prides itself on its sense of professionalism and its drive to work personally with each of its customers during the recovery process.

They specialise in recovering a wide range of debts, such as unpaid credit cards, personal loans, utility bills, mobile phone contracts, tax credit overpayments, parking fines, and other unsecured debts. Some of the companies that work with include Virgin Mobile, HMRC, DVLA, Sky TV, and Barclaycard.

Over the last 19 years, BPO Collections has established itself as a significant presence in the debt recovery market. Today, the company employs 122 staff members and generates around £10 million in revenue every year.

Where are BPO Collections based?

BPO Collections are owned by a parent company called Prospect Financial Europe, which is based in Iceland. However, their headquarters are located in Ardrossan, Ayrshire. Their full address is:

Marina Quay

Dock Road

Ardrossan

KA22 8DA

Are debt collection companies like BPO regulated?

BPO Collections is authorised and regulated by the Financial Conduct Authority (FCA). The FCA is the biggest regulator of the UK financial industry, responsible for overseeing the professional conduct of around 50,000 companies.

FCA authorisation means BPO Collections are bound by the rules outlined in the Consumer Credit Act (1974) and must adhere to certain guidelines to ensure they are carrying out their duties in line with the relevant legal limits. This means that they must operate within a legal framework designed to protect consumers.

BPO Collections is also a member of the Credit Services Association (CSA), which is the trade association for debt collection and debt purchase companies.

The CSA has over 300 members, representing 90% of the industry and playing a crucial role in managing over £35 billion in consumer debt and £10 billion in commercial debt.

What should I do when BPO Collections contact me?

If BPO Collections has contacted you about an unpaid debt, it’s important to respond appropriately. We’ve provided a series of steps you should follow below:

Don’t ignore them

When a debt company or debt collection agency contacts you, it’s crucial that you don’t ignore them. Not only will this not succeed in getting them to stop contacting you, but it will usually lead to further consequences for you and your finances.

Even if you don’t recognise the debt collector, they can still take further action against you if you fail to cooperate with them over the unpaid debt.

Verify the debt

The next thing you should do is contact BPO Collections to verify the debt is yours to pay.

To do this, you can send a ‘prove it’ letter asking them to prove that you do owe the money they are asking you to pay and that the balance is correct.

Repay the debt in full

If you recognise the debt and have the financial means to clear your balance in one payment, it’s always recommended to do so. This will put a stop to all collection efforts and allow you to move on from the debt.

This is always the best course of action if you agree to owing the debt or if the debt is for a small amount.

Repay the debt in instalments

If you want to repay the debt but don’t have the means to repay it in full, most debt collection agencies are happy to negotiate repayment plans with you to allow you to settle your balance in regular instalments.

It’s important to suggest a payment plan that will be easy to afford but that won’t put you in further financial hardship.

What if I can’t afford how much debt I’m being asked to repay?

If you can’t afford to pay BPO Collections, it’s important to note that ignoring the debt won’t make it go away. Instead, it could lead to further legal action, including court action and bailiff enforcement.

Here are your options for when you can’t afford to pay BPO Collections:

Seek free debt advice

There are many organisations that can provide free debt advice if you’re struggling with unaffordable debt. Financial charities, such as Citizens Advice Bureau and National Debtline, can review your financial situation and provide guidance on the best course of action for you.

By understanding your options for dealing with debt, you can be confident you’re making the best decision for your circumstances.

Consider a debt solution

There are a number of informal and formal debt solutions available to help you deal with your serious debt in a way that is manageable for you.

For example, an Individual Voluntary Arrangement (IVA) is a formal agreement between you and your creditors to repay your debt in monthly instalments you can easily afford over a fixed period (usually five years). Once you’ve made your final monthly payment, any remaining debt not repaid will be written off.

What happens if I ignore debt collection companies like BPO Collections?

There can be serious consequences for ignoring debt collection agencies when they get in touch with you, such as:

Further damage to your credit score

Failing to cooperate with a debt collector can cause further damage to your credit score as collection companies can report your unpaid debts to credit reference agencies and this information can be visible for up to six years.

Lenders (e.g. banks) will be able to see you have debt by looking at your credit file and this can make it difficult to find someone willing to let you borrow money.

County Court Judgement (CCJ)

The longer you continue to ignore an unpaid debt, the more likely a debt collector is to apply for a court order against you in the form of a County Court Judgment (CCJ). A CCJ instructs you to repay a debt as per the court’s instructions. Depending on your level of cooperation, you could be ordered to repay your total debt in full or in instalments.

Having a CCJ on your credit file for six years will negatively impact your credit score and failure to comply with the terms of the CCJ will lead to more serious consequences.

More serious legal action

Continually ignoring a debt collector can lead to them taking further legal action against you, such as sending enforcement agents (bailiffs) to visit you at home and seize your belongings. Enforcement agents have more legal powers than debt collectors and can seize your belongings to recover payment of the debt.

In rare cases, a charging order can be made against you, which takes an unsecured debt and secures it to your home. This means that, if you sell your property, any money made from the sale must go towards repaying your debt.

Can BPO Collections visit my home over money owed?

If you’re being contacted by a debt collection agency, your biggest concern might be the prospect of field agents visiting you at home to collect debts.

However, BPO Collections will not typically visit your home to collect payment of a debt. Instead, they will likely get in touch with you by sending you letters or calling you.

It’s not unheard of for a debt collection agency like BPO Collections to send field agents to your home to recover debts, but this is usually only done as a last resort after all other attempts to collect payment have been unsuccessful.

Where can I seek advice about dealing with my unpaid debts?

If you’re struggling with unaffordable debt and don’t know where to turn, it’s important to seek professional advice from a debt advisor as soon as possible. There are various organisations, such as a debt charity or a debt management company, that could review your financial situation and guide you towards the best debt solution for you.

Depending on your circumstances and where you live, you could qualify for an Individual Voluntary Arrangement (IVA), a Debt Management Plan (DMP), or a Debt Relief Order (DRO). These solutions can help you repay your debt at a rate you can afford and your remaining balance may even be written off at the end of your arrangement.

It’s also crucial to complain if you believe you’ve been mistreated or harassed by BPO Debt Collectors. If you’re not happy with the way your complaint has been handled, you can escalate it to the Financial Ombudsman Service (FOS).