If you’ve received phone calls or letters from a debt recovery company called Link Financial, you’re probably wondering two things: ‘Are they legitimate?’ and ‘Do I have to pay them?’ Link Financial are likely contacting you because a company you owe money to has passed it to them to collect on their behalf.

We know how daunting it can be to be contacted by a debt collection agency out of the blue, but there’s no need to panic. Whether you owe the debt or not, you have several options.

This guide will explain everything you need to know about Link Financial, including their standing within the debt collection industry, where they are based, and what can happen if you ignore contact from them.

Who is Link Financial?

Link Financial (officially known as Link Financial Outsourcing Limited) is a debt purchasing agency that purchases non-performing loans at a discounted rate from another creditor, such as a bank or credit card company.

Founded in 1998, the firm has grown over the past 27 years to become a company with over 850 employees managing more than 7 million customer accounts across 10 European countries. They specialise in recovering debts from both businesses and individuals.

Today, Link Financial is the partner choice for some of the world’s leading banks, utility companies, credit providers, and financial institutions. Some of the business and consumer loans they collect include credit cards, personal loans auto finance loans, mortgages, equipment leases, and student loans.

Where is Link Financial based?

Link Financial is headquartered in London, UK. Their main business address is:

The Peak

2nd Floor

5 Wilton Road

London

SW1V 1AN

Are Link Financial regulated?

Link Financial operates under strict guidelines from a number of trade bodies to ensure they maintain best practices and adhere to industry standards.

They are regulated by the Financial Conduct Authority (FCA), which is an independent body that oversees the professional conduct of over 50,000 financial service companies across the UK.

Like many debt collection agencies, they are also a member of the Credit Services Association (CSA) which means there are strict rules they must adhere to when carrying out debt collection practices. The CSA is the trade association for the debt collection and debt purchase industries.

Link Financial also work closely with the Financial Ombudsman Service to help resolve customer disputes swiftly and efficiently. According to their website, they are committed to a customer-centric approach that is considerate, transparent, and fair.

Why has Link Financial contacted me?

If Link Financial has reached out to you, it means you likely have an outstanding debt with a lender and they have sold your debt to them to collect on their behalf. In most cases, lenders do this so they can free up time spent chasing unpaid debts and focus on lending to new customers.

Once Link Financial has purchased your debt, they will become the new owner of the debt and, from this point, all contact must be with them. They will send you a letter to inform you of the change.

It’s important to cooperate with any debt collection agency as you would with your original creditor. Even if you don’t recognise the name of the company, they can still take further action against you if you fail to comply with them.

How should I respond to Link Financial?

How you respond to Link Financial depends on whether or not you agree to owing the amount you’re being asked to repay. Here are the steps you should follow when you’re contacted by a debt collection agency:

Verify the debt

The first thing you should do when you receive a debt letter is contact Link Financial and ask them to verify the debt is yours and the amount you’re being asked to pay is correct.

Debt collection companies have a legal right to provide details of the debt if necessary, including the name of the original creditor, the full amount owed, and any extra interest or charges.

Make full payment upfront

If you agree to owing the debt and you have the financial means to pay it off all at once, you should do so. This will put a stop to all collection efforts from both the debt collection agency and your original creditor and allow you to move on from the debt.

Clearing your balance will also stop any further interest and charges from being added.

Arrange a repayment plan

If you want to settle your balance but can’t afford full payment upfront, you can negotiate a repayment plan where you make regular instalments towards what you owe based on what you can comfortably afford.

Link Financial can accept or reject your payment plan, but as long as you can prove you are paying as much as you can without it affecting your other monthly payments, they should be happy to reach an agreement with you.

What happens if I ignore Link Financial?

It’s never a good idea to ignore debt collection agencies like Link Financial when they reach out to you. As well as prolonging the debt, there can be serious consequences, such as:

Your credit rating can be damaged further

Having any unpaid debt in your name will cause considerable damage to your credit score, which can push you into further financial hardship. This is because it will be listed on your credit file for up to six years and will be visible to lenders when you apply for credit.

If lenders know you have debts that you’ve let go unpaid for some time, they will likely reject your application for credit. This can make it difficult to get approved for a loan, mortgage, credit card, bank account and even a phone contract.

Field agents can visit you at home

Link Financial will send debt collectors to your home to discuss and potentially collect payment of the debt in person if you continue to ignore their letters or phone calls.

However, it’s important to note that debt collectors can’t use aggressive or intimidating tactics when visiting you about a debt. Knowing your rights can help you protect yourself against harassment, which is common in the debt collection and debt purchase industries.

You can be served with a County Court Judgement (CCJ)

If you continually ignore a debt collection agency, they might take legal action against you in the form of a County Court Judgment (CCJ).

A CCJ is a court order that requires you to repay a debt within a certain timeframe. It will stay on your credit file for up to six years, regardless if you pay it within this time or not.

You will be at risk of more serious court action

In rare cases, ignoring debt collection agencies can lead to serious court action. This could involve a charging order being issued against you, which is when an unsecured debt is secured to your property. This acts as a sort of lien, meaning that, if the property is sold, the proceeds must go towards repaying the debt.

Ignoring debt collectors could also result in a wage garnishment being made. This is when the court instructs your employer to withhold a portion of your wages to pay the debt, leading to a reduced income until your debt has been repaid.

I can’t afford to repay my debt to Link debt collectors. What should I do?

If you’re receiving debt collection letters and phone calls about a debt you know you can’t afford to repay, it’s important not to panic. No matter your circumstances, you have options.

Seek free advice

If you’re worried about debt collectors, there are plenty of places you can go for free debt advice. This can help you know what your options are so you can be confident you’re making the right decision before you respond.

Financial charities like Citizens Advice and National Debtline can provide tailored advice on dealing with debt, negotiating with debt collection agencies, understanding your legal rights, and advising you on the best course of action for your circumstances.

Consider a debt solution

If you can’t afford to pay Link Financial in full, there are various informal and formal debt solutions available to help you repay what you owe in regular instalments. Here are some of the solutions you might be eligible for:

Individual Voluntary Arrangement (IVA)

An IVA is a legal agreement between you and your creditors to repay your outstanding debt in regular instalments over a fixed period. It is available in England and Wales and typically lasts five years, during which time you make monthly payments based on how much you can comfortably afford and all creditor contact, interest, and charges will be frozen.

Once you’ve made your final monthly payment, all remaining debt not repaid through the IVA will be written off. This means that it will essentially be cancelled and you won’t be asked to pay anything towards it again.

Trust Deed

A Trust Deed is often referred to as the Scottish equivalent of an IVA. It works by consolidating your unaffordable debt into monthly payments you can easily afford over a set period (usually four years).

During your arrangement, you’ll be given legal protection from your creditors and all interest and charges will be frozen. As long as you make your affordable repayments as agreed and stick to the agreed terms, any unsecured debt left over will be written off at the end of your payment arrangement.