Navigating the complex terrain of debt repayment can be a daunting endeavour, particularly when faced with the persistent approaches of debt collection agencies like Capita Returns Management.
With the uncertainty of whether to pay up or explore other avenues, it’s crucial to understand the intricacies of your obligations.
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If you have been contacted by Capita Business Services LTD, it’s crucial that you know how to handle them. In some cases, you might even be wondering why they’re contacting you. Let us explain everything you need to know.
Who Are Capita Business Services Ltd?
Capita Business Services Ltd stands as a robust arm of the Capita Plc group, employing a hefty workforce of about 12,500 people based in London. They handle a myriad of business services, with a keen focus on debt management.
From tapping into the utilities sector to buzzing through telecoms and finance, they’re the go-to for many. They also gather Council Tax and business rates for local councils. However, they do not collect debts on behalf of HMRC.
They’re fully authorised by the Financial Conduct Authority (FCA), no less, and even have the nod to act as Certificated Enforcement Agents.
| Address: | 30 Berners Street, London, England, W1T 3LR |
| Registration Number: | 2299747 |
| Incorporation Date: | 9/26/1988 |
| License Granted: | 11/12/2018 |
| Also Known As: | Capita Business Services Ltd Limited Capita Business Services Ltd Ltd Capita Business Services Ltd Group Capita Business Services Ltd Bailiffs Capita Business Services Ltd Debt Collectors Capita Business Services Ltd Debt Collection Capita Business Services Ltd Agency |
With such a broad reach, Capita Returns Management is certainly more than a simple debt collector. But how exactly could they be involved in your life? Stay tuned, as the answer might just surprise you.
What Are Capita Business Services Ltd Contacting You For?
It’s clear debt is a big problem today, and that’s where companies like Capita Returns Management step in. They often team up with your original creditor to manage outstanding debts.
The company buys debts at a fraction of the total debt and then makes their move to collect from you, the debtor. Once you pay up, that’s when they hit the jackpot. But here’s a twist – not all debt collectors play fair.
While Capita aims to collect what’s owed, are they considering your situation? It’s a question that leaves many debtors pondering their next move.
Before you pay the debt, some things you should know include:
- Accuracy Check: Don’t just settle a debt because Capita Returns Management says so. It’s your right to verify if it’s accurate. Simply ask them via a request letter titled “Prove the Debt”. Make sure to ask them to send you written proof that proves you really owe them.
- Higher Than Expected?: Notice the numbers looking steeper than you recall? That could be due to extra charges and interest.
Requesting for your original credit agreement with your creditor will also help you to confirm if the debt is legitimate. If they are unable to provide you with proof, then you’re not obligated to pay.
What if You Can Pay Capita Returns Management But Don’t Want To?
If you’re able to, paying up swiftly is often wise. But if paying the debt might worsen your financial situation, there’s a middle ground. Talk to Capita and discuss an arrangement. Maybe chip away at the debt with a partial payment.
It’s a step that could ease the pressure without draining your resources.
In a situation where you’re unable to pay due to lack of funds, the UK’s got a bouquet of debt solutions, and they come with a perk – Capita might just stop their calls. If you’re confused about which path you should take, this is where a debt charity can be a game-changer, tailoring a plan just for you.
Alternatively, feel free to fill out our online form, and our MoneyAdvisor team will guide you.
- Debt Management Plan (DMP): A DMP bundles debts into a single, manageable monthly payment. Since it is informal, it’s not legally binding. Thus, you’re not tied to a minimum number of payments.
- Individual Voluntary Arrangement (IVA): An IVA spreads payments over 5 to 6 years, and during this time, your creditors agree not to contact you. The remaining debt gets written off at the end of the IVA period. Note that an IVA is not suitable for everyone. In order to be eligible, you should owe several thousand pounds to multiple creditors. You should also have a disposable income each month.
- Debt Relief Order (DRO): If you have little income and co-assets, a DRO puts payments on hold, and creditors freeze your interest. You might be able to write off your debts if your situation doesn’t improve within this period.
- Bankruptcy: It’s a fresh start, but tread carefully. This is for individuals who are sure they can never pay their debt. But keep in mind that it is a serious financial situation thus, avoid taking it lightly.
Are Debt Collectors Affecting Your Life?
The relentless calls and pressure tactics used by debt collectors can make anyone’s life stressful. And in some cases, debtors even contemplate suicide. The tactics they use include constant phone calls and letters asking you to pay, even if you cannot afford it or not.
Many debtors report that they felt humiliated and had no way to turn. But the government has taken steps to resolve this issue and now the situation is somewhat better.
Debt collectors should always follow the guidelines of the Financial Conduct Authority (FCA). Some guidelines they should follow include:
- Treat Fairly: No harassment or bullying. They’ve got to be fair and square.
- Clear Information: Everything they say and write should be crystal clear – no jargon, no confusion.
- Consideration for Circumstances: They need to put themselves in your shoes and act with a bit of heart.
If you’re being mistreated or harassed, you can file a complaint. Some debt collectors also pretend to be bailiffs. Note that this is against guidelines.
Do You Know How Capita Returns Management Operate?
Capita Returns Management has its own set of rules. Their agents might get a bonus for every dollar they convince you to pay. Their persistence has a price tag, which explains their tenacity.
- Incentives: Agents might earn extra cash for collecting debts – daily, monthly, or even hourly.
- Persistence Pays: They’re aiming for a bonus, so expect them to be determined.
Due to this, debt collectors don’t want to get off the phone unless you make a payment.
If they fail to collect the debt, they will be answerable to the company. Also, keep in mind that even though you should try to pay off your debt, you don’t have to if it would worsen your situation. You can check out other options instead.
Even though ignoring calls from Capita Returns Management might seem tempting, note that these calls are automated. So ignoring them will be tough. If your phone starts ringing continuously, then it is because of the automated call technology they have adopted.
Note that this is a type of harassment, and you have the right to make a complaint. Noting down the calls you have received when making the complaint is crucial. This includes the nature of the call and the times you received them.
Calling at a rate breaks the Financial Conduct Authority guidelines. So, if you receive calls like this, inform the agent that you will be making a complaint against them to the Financial Ombudsman regarding this.
Another tactic that debt collectors use is changing their tone and attitude towards you when they notice that you’re unable to pay the debt. Debt collectors usually start the call by being polite and friendly. But if they don’t get the response they want from you, the conversation might take a negative turn.
Even though most debt collectors do this, it doesn’t mean you should tolerate it. Note that you have rights and don’t have to tolerate if you’re being mistreated. They do this to intimidate you into paying. If you’re unable to pay the amount you owe, there are other options available. You don’t have to pay something that would worsen your situation.
Even if you don’t answer their calls, they cannot talk to a family member and discuss your debt with them. If they do this, they are breaking the guidelines. Discussing your debt with outsiders, which includes family, is a form of illegal behavior, according to the FCA. It also breaches privacy laws.
Are They Telling You Lies?
If you don’t pay the debt even after they use various tactics, they might try to intimidate you by using other types of leverage. This includes:
- Lying to you by pretending that they are contacting you from court
- Pretending to be bailiffs who want to visit your house and seize your assets.
- Stating that they will prosecute you for the debt
No matter what tactic they use, don’t allow them to come to your house. If they come to your home and you feel harassed, call the police, and they will take care of it.
Standing Up to Debt Collectors
Confronting Capita Returns Management isn’t easy. Their aggressive tactics can push you to the edge. But standing firm could change the game. Debt collectors usually don’t stop at any cost to get you to pay. Because of this, it causes mental health issues in many people. And in some cases, individuals might even contemplate suicide.
But even if you have to pay them make sure that it will not worsen your situation. Afterall, there are other options available in the UK if you’re struggling with debt. You can get advice from a debt charity regarding it.
Will Capita Returns Management Affect My Credit Score?
Yes. Your credit score is your financial fingerprint, and Capita’s involvement could leave a mark. Once you default on an account or you miss a few payments, it impacts your credit score. This will then be sold to debt collectors. At this point, it will appear as a second collection account on your credit report. And also, your original entry will show as ‘sold,’ which is a red flag.
If a second entry isn’t added to your credit report, your original debt entry can be changed to add the information of the debt collection company. Even though this usually doesn’t happen for small debts, they have the right to.
These collection accounts will also negatively impact your credit score. It will be there on your report for a period of six years. So, during this time, it will be difficult to get credit. This is because lenders will consider you as a high-risk customer.
This is someone who might find it difficult to pay back the amount they owe. Also, if you have a CCJ against you, this will further prove to lenders that someone had to go to court against you for nonpayment. Thus, lenders will not be willing to give you credit.
But after six years, this will clear out from your credit report. So you will once again find it easier to get credit. Debt solutions also appear on your credit report for six years, negatively impacting your credit score. But just like the CCJ, the debt solution will also clear out after six years.
Free Debt Help and Advice
In the labyrinth of debt solutions, free advice can be your guiding light. Organisations are ready to help you chart a course through your financial troubles, offering a lifeline when you’re in debt. Discover the support networks that can provide you with the compass to navigate towards a debt-free future.
If a debt collector is chasing you for money, we recommend you reach out to a debt charity. Some debt charities that you can reach out to in the UK include:
- National Debtline
- Citizens Advice
- StepChange
- Debt Advice Foundation
You May Be Able to Write Off Your Debt
If you’re struggling to pay off your debt, you might not have to pay that debt forever. The UK offers a range of debt solutions, and a debt charity advisor can tailor one to fit your finances like a glove.
It’s important that you get some advice from a debt charity before you take up a debt solution. This is because while the right debt solution will help you to write off debt, the wrong one might worsen your situation as it will be expensive.
Alternatively, feel free to fill out our online form, and our MoneyAdvisor team will guide you on the best course of action.
- Debt Management Plan (DMP): Think of a DMP as a casual agreement allowing you to pay back debts in manageable monthly payments. Since it is an informal debt solution, it’s not legally binding. So you’re not tied to a minimum number of payments.
- Individual Voluntary Arrangement (IVA): An IVA is a bit more formal. This lasts for 5 to 6 years, and you should pay a portion of your debt every month. And your creditors agree not to contact you during this period. Once the IVA ends, the remaining debt gets written off.
Note that IVAs are not for everyone. In order to be eligible for it, you should owe several thousand pounds to multiple creditors. You should also prove that you have some disposable income every month.
- Debt Relief Order (DRO): If you have no assets and little income, A DRO freezes your debt repayments for a year. During this time, your creditors freeze interest. If your financial situation does not improve after one year, you may be able to get your debt written off.
- Bankruptcy: It’s serious and can offer a fresh start, but it’s not to be taken lightly. This option is for individuals who have no realistic possibility of ever paying off their debt. Even though there’s a stigma around Bankruptcy, this option helps people struggling with huge debts to have a fresh start.
Can I Write Off My Debt Without a Debt Solution?
If you don’t want to take up a debt solution, you can request Capita Returns Management to provide you with a payment plan.
Under these circumstances, negotiations work due to two specific reasons:
- The company did not pay the full value of the debt when they purchased it: Debts are purchased for a lower amount than their original worth. So, in order to make a profit, they don’t have to recover the full debt from you.
- Since taking legal action is costly, it will reduce the total profit of Capita Returns. So they might prefer you pay at least a small portion of your debt rather than spending money on taking you to court to get you to pay.
So you might be able to ask them to lower the debt owed or provide you a reduced-cost repayment plan. But this will also affect your credit score as it will appear as ‘unsatisfied’.
So, in summary:
- Bargaining Power: Capita Returns Management often acquires debts for less than their full value, giving you some room to negotiate.
- Cost of Legal Action: They know court battles can be pricey, making them more likely to accept a reasonable offer from you.
- Settlement Possibility: A lump-sum offer might just be the olive branch that makes Capita Returns Management back down.
But be cautious – striking a deal can affect your credit score, signalling to future lenders that you’ve had hiccups with debts.
Making a Complaint Against Capita Returns Management
If you’re unhappy with how Capita Returns Management is treating you, it’s within your rights to challenge their conduct by filing a complaint against them. You also have the right to make a complaint if you break any of the Financial Conduct Authority (FCA) rules.
You should make the complaint to Capita Returns Management. This will give them the chance to try and resolve the matter from their end. But if they don’t look into your issue or if they don’t provide you with a response, you can escalate the complaint.
In this case, make a complaint to the Financial Ombudsman Service (FOS). They will look into the matter, and if your complaint is upheld, the debt collection company might be fined. In some instances, they might even have to pay you compensation.
With UK household debt on the up, it’s crucial to stay vigilant. Check for Other Collectors: Regularly review your communications for any hints of additional debts. If you have other debt, always check if it is under control.
In order to do this, check your emails, post, and bank statements for correspondence from debt collectors. Some of the largest debt collection companies in the UK that you should watch out for in the UK include:
- Cabot Financial
- PRA Group
- Lowell Financial
Negotiating debts isn’t a road often taken, but could it be a path to financial relief for you? The anticipation of what Capita Returns Management might say to your offer is palpable. Ready to find out more? The journey continues with just a click or a call.
Need to reach out? Whether for negotiation, questions, or complaints, here’s how to connect with Capita Returns Management:
| Phone | +44 (0) 20 7799 1525 |
| Website: | https://www.capita.com/ |
Key Points
- Introduce Capita Business Services Ltd as a prominent debt collection agency operating in London, highlighting its affiliation with the larger Capita Plc group.
- Emphasise that in the UK, there are legal avenues available that may allow individuals to write off portions of their debt, suggesting that some may not be as bound to their debt as they believe.
- Encourage exploring the variety of debt solutions offered in the UK, tailored to alleviate unmanageable debt and to align with personal financial situations, with a special nod to how Capita Returns Management fits into these solutions.
- Stress the importance of verifying any claimed debt with Capita Returns Management by requesting a copy of the credit agreement, ensuring debts are not paid without confirmation of their legitimacy.
- Urge that if the debtor can afford to pay off their debt, doing so promptly is advisable while also presenting the option of negotiating an arrangement or making a partial payment if full repayment is not immediately viable.
- Guide readers toward seeking free, professional debt advice from reputable organisations such as the Citizens Advice Bureau, Christians Against Poverty, or StepChange to navigate their financial obligations with Capita Returns Management more effectively.
