It can be easy to lose contact with the people you owe money to – whether you’ve moved home or haven’t been contacted about the debt in a while. But if you want to settle your unpaid debts, it’s important you know who you’re dealing with and how to get in touch with them if you need to.
Thankfully, there are various ways you can find out what debt collectors you owe so you can discuss your financial situation and come to an agreement on how to pay back what you owe.
What is a debt collector?
Before delving into the debt collection process, it’s important you know what a debt collector is and what they are used for. Put simply, a debt collector is an individual hired by your creditor (the person you owe) to recover payment of an unpaid debt on their behalf.
They are usually brought into the debt collection process after your creditor has failed to collect the debt themselves – despite their best efforts – and can work for themselves, a private company, or a debt collection agency.
In most cases, debt collectors are paid a fixed percentage of the amount they collect while creditors keep the rest of the money owed. However, some debt collectors purchase debts at a discounted rate and retain full payment of the debt.
It’s important to note that a debt collector is not the same as a bailiff. They both work to collect payment of unpaid debts, but while bailiffs can enter your home and seize your belongings, debt collectors have no more legal powers than your creditors and can only ask you to pay.
How much debt do you have?
How does the debt collection process work?
The debt collection process involves a series of steps, which are governed by legal guidelines to ensure a fair recovery process for all.
Initial letter
The first time you’ll be informed that your debt has been passed to a collection agency is when you receive a letter from a debt collector. The letter will outline the total amount owed, where the debt came from, and by which date you should make payment.
Reach an agreement
Once a debt collector has reached out, you should pay the debt (if you’re in a position to do so) or arrange a payment plan (where you make monthly payments for a set period).
Possible legal action
If you continue to ignore the debt, you might be threatened with legal action to get you to hand over what you owe. This could include a County Court Judgment (CCJ), which will order you to pay what you owe in full or in instalments.
How to find out what debt collectors you owe
If you know you have unpaid debts but don’t know what debt collectors you owe, there are several things you can do. If you want to find out what debt collectors you owe, you can:
Look for creditor letters
The easiest way to find out what debt collectors you owe is to read letters from your creditors. They should tell you how much debt you owe as well as give you the account number for each individual debt, which will make it easier to get in touch with your creditors if you need to.
Most people keep creditor letters for future reference, so you should be able to locate them in a safe place. However, if you moved home and your creditor doesn’t have your new address, it might be worth contacting the new occupier to find out if there are any unopened letters waiting for you.
Get a copy of your credit report
Another way of finding out what debt collectors you owe is to get a copy of your credit report from all of the major credit bureaus. This will tell you various details about your financial situation, including all existing debts, credit enquiries, court judgments, and public records from the past six years.
Once you have all the information you need, it’s important you take the time to comb through each individual account to find out who you owe and whether it’s been passed to a debt collector. Remember, not every credit report will hold information about all your debts (e.g. a payday loan won’t typically appear on your credit report).
Check your bank statements
If you’ve failed to locate your creditor letters or access your credit reports, your bank account statements should show you if you’ve made payments to any debt collectors.
During this process, it’s important to research any organisations you don’t recognise as your creditor might have passed the debt on to a debt collection agency that you don’t recognise or have never heard of.
Contact your creditor
If you’ve failed to find out what debt collectors you owe yourself, you can reach out to your creditor directly. They might be able to tell you which debt collection agency they passed your account to and how to get in touch with them.
However, some lenders will refuse to discuss the debt with you once it’s been passed on or bought by another company so it’s worth trying other methods first.
“No fuss, just simple, honest advice. Communication is good and they make the process as easy as they can.”
What if I still can’t find out what debts I have?
If you’ve looked for creditor letters, got a copy of your credit report, and checked your bank statements and still can’t find any information about your debts or who you owe, the debt might be statute barred.
For most unsecured debts, the limitation period, or statute of limitations, is six years. This essentially means that if six years have passed and you haven’t acknowledged the debt or made a payment towards it and your creditor hasn’t contacted you, the time for taking legal action against it will have run out.
Furthermore, because most debts only remain on your credit file for six years before being automatically removed, searching your credit report won’t turn up any results after this time and will only show credit agreements or debts accrued in the last six years.
However, it’s worth noting that while statute barred debt can’t be legally pursued, it still exists and your creditor can still try to recover it through other means, such as a debt collection agency or further contact.
What happens if I ignore a debt collector?
Although debt collectors don’t have as many legal powers as bailiffs, it’s still not wise to ignore them. Here are some of the consequences you could face for ignoring debt collectors:
- Extra interest and fees – If your original credit agreement contains a clause that allows extra interest and fees to be added, the original amount you owe could increase significantly once the debt has been passed on to an external company.
- Damaged credit score – If you’re struggling with multiple debts, they’ll likely be reported to the various credit reference agencies, negatively affecting your credit score and making it difficult to obtain credit for six years.
- Legal action – If you’ve ignored a debt collector for some time, they might apply to take legal action against you, which could result in a CCJ or a Third Party Debt Order being made against you. In serious cases, you could also be made bankrupt.
Debt help tailored to you
From writing off a large portion of your debt, to readjusting your budget, we’ll find a solution that suits you.
How do I know if a debt collector is legitimate?
If you’ve been contacted by an individual or company claiming to be a debt collector, it’s important to verify their identity to confirm they are who they say they are.
Though rare, some people impersonate debt collectors in an attempt to gain access to money they’re not entitled to. If this happens, you’re unlikely to get any of the money back as you willingly handed it over.
The first thing you should do when you’re contacted by a debt collector is search for them online. If they are legitimate, they will have a substantial online presence, including a complete website, easy-to-find contact details, and customer reviews spanning the length of the company’s history.
Some of the tricks you should be aware of when a debt collector reaches out to you are:
- Making demands for full payment but not accepting a payment plan
- Insisting on knowing personal details they should already know
- Failing to provide any information about the creditor that supposedly hired them
- Not having an online presence or any contact details
- Threatening you if you can’t pay the full amount immediately
It’s important not to hand over any money (no matter how little) until you’re confident that a debt collector is legitimate. Once the money is gone, it can be difficult to get reimbursed by your bank or building society if you don’t know who they were or what company they work for.
Conclusion
Struggling with unaffordable debt can be stressful enough without worrying about what debt collectors you owe. However, there are several things you can do to find out who you owe and how to get in touch with them if necessary.
To find out what debt collectors might be chasing you for payment, try looking for creditor letters, getting a copy of your credit reports, checking your bank statements, and contacting your creditors directly.
If your debt has been passed on to a debt collection company and you don’t know what your next steps should be, don’t hesitate to reach out for free debt advice from your local Citizens Advice. They will review your financial situation and provide help and support tailored to your circumstances.
