Confused by a sudden claim from CL Finance Limited on your finances? The question looms: Is this debt genuinely yours, and even if it is, can your wallet handle the strain? Unravelling this mystery could change your financial path — what will you discover?
Table of Contents
MORE
LESS
Who Are CL Finance Debt Collectors?
CL Finance is a debt collection firm in the UK, working tirelessly to recover overdue payments for various companies. They work on behalf of both large as well as small companies.
CL Finance Debt Collectors is a debt collection agency registered in the UK. They assist a range of companies in getting debt back from customers, including both small and large organisations.
Why Are CL Finance Debt Collectors Contacting You?
Debt collection is a huge industry. With many struggling to keep up with bills, it’s no surprise that agencies like CL Finance are on the move. They come in all types. Some work independently, while others team up with your creditor—that’s the company you originally owed money to.
Their goal is to chase down debts bought at a fraction of their value, sometimes as low as 20%. So, say you missed a payment on a Santander bank loan. They might step in to collect. This is the reason why debt collectors are so pushy. Due to this, they even use unfair tactics to get debtors to pay.
How Do You Know If the Debt Is Yours?
If you received a debt notice from CL Finance, don’t rush to pay. First, make sure it’s actually your debt. Here’s how:
- Verify the debt: Contact CL Finance for a full breakdown—where did this debt come from, and what are the charges and interest?
- Proof of the debt: Request the original credit agreement by sending a Prove the Debt letter. If CL Finance can’t provide this, you may not have to pay a penny. If they own your debt, they have to provide you with proof.
- Stand your ground: it does not matter what CL Finance Limited says. You don’t have to pay them if they are unable to show you proof. Most of the time, debt collectors send letters, hoping that you won’t request proof and you will pay it right away.
- So, if you don’t receive proof, you can ignore their letters. But if they continue to ask you to pay, you can file a complaint as it is a type of harassment.
Can Pay CL Finance, But Should You?
Let’s say CL Finance proves the debt’s yours. If paying doesn’t leave your pockets empty, clearing the debt could be your best move. But what if it means skipping meals or missing rent? Then, a payment plan could be your lifeline.
You might also have the option of making one partial payment to clear out the whole debt.
Are Debt Collectors Ruining Your Life?
Even though debt collectors might seem like they would cause no harm, their actions might have a negative impact on people:
- Harsh Tactics: Collectors like CL Finance might use pressure or even bullying to get you to pay. They might even try to contact you at your workplace if you don’t pay.
- Impact on Life: Constant calls can take a toll, leaving you feeling humiliated or trapped. It’s serious—some individuals even talk about feeling hopeless and suicidal.
- Legal Changes: Due to these harsh methods, the government stepped in. Laws have changed to protect you from these over-the-top collection tactics.
CL Finance Debt Collectors and What the Law Tells Us
According to the Office of Fair Trading Act, there are certain guidelines that debt collectors should follow when they handle debtors. This includes:
- Fair treatment: debtors should always be treated in a fair and respectful manner. Debt collectors should not use any unfair tactics or be aggressive toward them.
- Clear information: debt collectors should provide debtors with clear information and should not purposely use technical jargon to confuse, mislead or intimidate debtors.
- Consider the circumstances: debt collectors should always be considerate towards debtors and try to understand their point of view before taking action against them.
In a situation where CL Finance Limited breaks any of the rules and guidelines, you have the right to file a complaint directly to the company. But if they don’t take your complaint seriously, escalate the issue to the Financial Ombudsman Service (FOS).
Find Out More About CL Finance Debt Collectors
If you want to know how to handle CL Finance, it’s crucial that you understand how they work first:
CL Finance might have bought your debt on the cheap, but if you don’t pay, they don’t profit. That’s why they try so hard eager to collect. Because of this, some debt collectors even harass debtors to recover the debt or force them to pay even when they cannot. If you don’t pay, the agents will also lose the opportunity to receive a bonus.
some debt collectors may use tactics such as harassment to collect the money from you. This includes calling you at a rate or even not speaking when you answer the phone. Note that you don’t have to tolerate actions like this.
It’s best you record letters or calls like this and make a complaint to the Financial Ombudsman. You can contact the FOS on 0800 023 4567 or 0300 123 9123.
If their calls become overwhelming, note the times. This isn’t just annoying; it’s a breach of regulations, and you’ve got rights. They might also use tactics where they are friendly at first but become rude and unfriendly the moment you say you’re unable to pay. This is also because debt collectors are under pressure to get the money from you.
So, expect to even receive emails and letters that might sound threatening. They do this in order to get your attention and intimidate you into paying the debt. Note that if you ignore their reachouts, they will keep on contacting you. Knowing your rights in this situation will be beneficial.
Debt collectors might also talk about your debt to outsiders. For example, if a family member picks up the phone instead of you, they might inform them of the situation. Note that this is illegal, and they don’t have the right to do this as it breaches privacy laws.
Don’t Fall for the Lies
Debt collectors can be crafty. They might say they’re bailiffs or threaten legal action. This is because they don’t expect you to know that this is against the rules. So they might use these tactics to get you to pay.
Don’t fall for these types of lies, and do not give them permission to enter your home. If they pressure you into letting them in, inform the police.
Standing Up to Debt Collectors
Debt collectors tend to be forceful, and this might have a negative impact on your mental health. Some debtors even state that they feel suicidal. If CL Finance bullies or harasses you, you can exercise your rights.
Only pay the debt if you can handle it. No matter how bad your financial situation is, you always have a solution for it.
Debt Help From the Experts
Struggling with debt is tough, but you’re not alone. Debt charities offer free advice and support. There are many debt charities in the UK that you can reach out to. Some of them include:
- Citizens Advice
- StepChange
- National Debtline
- Debt Advice Foundation
How Do I Make a Complaint About CL Finance?
If you think CL Finance has overstepped, it’s complaint time. First, reach out to CL Finance and make a complaint if they break any of the Financial Conduct Authority (FCA) guidelines. This will give them the chance to resolve the matter themselves.
But if they don’t take your complaint seriously, escalate the matter to the Financial Ombudsman Service (FOS). They will look into the issue and investigate it. If your complaint is upheld, CL Finance might have to pay a fine, or they might even owe you compensation.
Can I Get a Debt Solution?
There are many debt solutions in the UK that you can consider if you’re finding it difficult to pay the debt. Some of these debt solutions help you to write off a portion of your debt. However, while the right debt solution will help you to write off debt, the wrong one might worsen your situation.
So we recommend you reach out to a debt charity for advice on this. Alternatively, feel free to fill out our online form, and our Money Advisor Team will guide you. Some debt solutions available in the UK are as follows:
- Simplified Payments: A Debt Management Plan helps you to trim down your debt to one manageable monthly payment,
- Flexibility: No legal ties mean you can adjust as needed.
- Set Terms: an Individual Voluntary Arrangement helps you to agree on a payment plan that lasts 5-6 years—and then possibly write off the remaining debt.
- Creditor Agreement: Creditors can’t chase you once the IVA is in place. But how secure is this agreement?
- Debt Relief Order (DRO): With little income and fewer assets, a DRO offers a year-long reprieve.
- Bankruptcy: A daunting word that has a stigma attached to it, but it could be a clean slate.
Each option has its path and potential. As you stand at this crossroads, consider:
- Long-Term Impact: How will each choice shape your future?
- CL Finance’s Role: With a solution in place, how will their pursuit change?
What Is the Debt Breathing Space Scheme?
This is a game-changer. It is a government scheme offering you 60 days without CL Finance pressure, Interest-free and enforcement-free once you become eligible for it. This time is given so that you can use it to get some advice on a solution.
This option first began in May 2021, and it comes in two types:
- A standard breathing space for individuals struggling with debt. Lasts for 60 days.
- A mental health crisis breathing space: for individuals suffering from a mental health issue and receiving treatment for it. It lasts for the treatment period and an additional 30 days.
Note that a Breathing space scheme is not available in Scotland. So, you will have to apply for a Statutory Moratorium instead.
So Do I Have to Pay CL Finance?
- Persistent Collectors: Despite warnings and law changes, some debt collectors, sadly, haven’t mended their ways. Because of this, some debtors have even considered suicide.
- Your Payment Terms: It’s your right to repay debts in a manner that suits your financial situation.
- Taking a Stand: If you’re at your wit’s end with CL Finance, lodging a complaint might be in order. And if things don’t change, the Financial Ombudsman could be your next call. As a result, they might be fined and even owe you compensation.
CL Finance Contact Details
| Name: | CL Finance |
| Also Known As: | Part of Lewis Group |
| Address | Kingston House, Centre 27 Business Park, Woodhead Road, BATLEY WF17 9TD |
| Telephone: | Could be 01924 444466 (BUT DO NOT PHONE C L FINANCE) |
| Extra Data: | Seem to be associated with GE Money (as a client perhaps) and are part of the Lewis Group (q.v.), which in turn is owned by Cattles, which is an FTSE 250 company. |
Other Debt Collectors to Look for on Your Credit Report
CL Finance isn’t the only collector out there. Your credit report might reveal others lurking. It’s very easy to miss out on this and go completely unaware that your debt has been passed on to a collector.
This is why you should always check your credit report. If they purchase your debts, it will appear on your credit file.
Some of the largest debt collectors include PRA Group, Cabot, and Lowell. If you see any of these names on your file, look into it without any delay.
Key Points
- CL Finance is a debt collection company that works on behalf of other companies in order to collect debts.
- If you receive a debt letter from them, make sure to verify the debt before you decide to pay. You can do this by sending a ‘Prove the Debt’ letter.
- If they prove you owe the debt and you have enough money to pay, clearing the debt is wise. If you don’t have enough funds, request a payment plan or consider taking up a debt solution.
- Sometimes, debt collectors use harsh tactics to get you to pay. But you don’t have to tolerate this.
- If a debt collector harasses or breaks any guidelines, file a complaint to the company and then to the FOS.
- According to the guidelines, debt collectors should treat you fairly, provide transparent information, and consider your circumstances.
- There are many debt solutions available in the UK, such as IVA, DMO, DRO, and Bankruptcy.
- A debt-breathing space scheme is a government scheme offering you 60 days without CL Finance pressure, Interest-free and enforcement-free once you become eligible for it.
- There are two types of debt-breathing space schemes. This includes a standard breathing space and a mental health crisis breathing space.
- If you owe a debt to any company, always check your credit report if your debt has been transferred to a collector. Some of the major debt collectors to look out for include Lowell, Cabot, and PRA Group.
