Lantern Debt – Lantern Debt Recovery Services – Ultimate Guide 2023

Since you are here, you may have received a phone call from Lantern Debt Recovery UK. Remember, it is very important, do not ever ignore them. They can create a big scenario for you. Hold on. 

Let’s explore your options together. But remember, this tale involving your ‘lantern debt’ is far from over…”

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Who is Lantern?

Have you ever heard of Lantern? Yes, you may guess correctly. Based in Leeds, UK, Lantern Debt Recovery Services are specialists in “debt recovery”. 

They were previously known as Motormile Finance, a name synonymous with car finance. But, they’ve now rebranded to Lantern and broadened their horizons.

Lantern doesn’t just deal with any debts; they mainly handle debts from other companies. “Lanterns Debt” origins from there. Think of yourself as a borrower who owns money to a company. In that case, Lantern might step in to reclaim the money on the company’s behalf or purchase the debt altogether.

What does Lantern really do?

Actually, they buy debts. Now, you might be thinking, “What is the intention of them to buy others’ debts?” Yes, it is a fair question. The business model of Lantern involves buying the debts at a substantially discounted rate, sometimes as low as 20% of the original debt cost.

For instance, if you owe £1,000 on a credit card, Lantern might buy the debt for as low as £400. And guess what? You’ll still owe the full £1,000, but now to Lantern, not the credit card company.

Now you might be wondering why Lantern debt buys your debt. What will they receive? They’ll do this since it lets them try to recover the whole amount from the person to whom the debt is owed, which will result in a substantial profit. 

The credit agreement that the client first signed will provide justification for that. A creditor may frequently sell the debt in order to secure a return while avoiding the trouble of going after the debtor personally.

But do not worry. They got you covered. Despite the change, your debt doesn’t grow. Extra interest on the debt usually stops accumulating, but you need to set up payments to Lantern. And if you’re wondering what happens next in this Lantern debt journey, keep reading.

Why has Lantern got in touch?

If Lantern has written or contacted you, it indicates that they have assumed responsibility for a debt you owe to someone. It could be a debt you are aware of, or on rare occasions, it might be an old debt you were unaware you still had.

How do I find out more about debt with Lantern?

It can also be an error. Sometimes a debt may have been paid off, but due to an administrative error, it still indicates to be remaining. 
Or it might be a case of mistaken identification. If you think you have come across with such a scenario, do not pay all of a sudden. But do not ignore either.

Check and verify that the debt is really yours.

All of these are quite simple to settle, but Lantern will want evidence proving you are not the debt’s owner. Don’t worry if you find it difficult to demonstrate your ownership; Lantern is required to provide proof if you request it.

The validity of the debt must then be verified. It can be “statute barred”, or you might have previously paid it off. 

Simply put, this suggests the debt has beyond its expiration date; if it has been six years since you recognised the debt (either in writing or by making a payment), Lantern shouldn’t be able to enforce it. In Scotland, it takes only five years.

A debt collector must be able to provide a genuine copy of the Consumer Credit Agreement (CCA) that you signed. Only when your debt was transferred to a debt collector is a CCA applicable, not when the original creditor brings a lawsuit against you.

Is Lantern Recognized as a Valid Debt Collection Agency?

Yes, indeed. Lantern is recognised as a valid debt collection agency within the United Kingdom. How can you verify this? As they are registered at  Financial Conduct Authority (FCA) you will not have a doubt. It is a regulatory body overseeing financial services firms. Therefore, you deserve to be treated fairly.

It also implies that you shouldn’t disregard any communications from Lantern. If they’ve gotten in touch, they have your name attached to a debt they hold and have the right to correspond with you to recover it. This brings us to the next important point – Lantern’s relationship with the FCA.

Lantern’s Relationship with the Financial Conduct Authority

Being registered with the FCA, Lantern adheres to the guidelines and rules set forth by the authority. These rules were made with the consumer in mind. But remember, lantern debt is after money at the end of the day. So, they will not give you full protection.

Here are some prevented actions for lantern debt.

If you believe that Lantern has treated you unfairly or not followed the proper process, you can lodge a complaint. The Financial Ombudsman Service or the Credit Services Association (CSA) can provide assistance if your complaint isn’t resolved to your satisfaction.

Who are Lantern’s Debt Collection Clients?

Lantern works with a broad range of clients, 

Some examples are O2, EE, and Virgin Media. In addition, Lantern is in charge of collecting debts for payday loans, delayed Council Tax payments, unpaid court fines, catalogues, and also parking tickets.

 But wait! There’s more to know about Lantern’s debt recovery procedure.

What Steps can Lantern Implement in Debt Recovery?

Have you ever wondered what steps Lantern Debt Recovery can take to recover a debt? You should not expect a straightforward answer for this question. They will try different methods like polite reminder letters to more scary legal actions. Let us talk about the steps one by one. That will make things easy for you. 

First off, you will receive a letter from Lantern introducing themselves and informing you about your debt. This is not a demand for payment yet, but a notification about the debt they have purchased and your obligation to repay it. You may feel frustrated. But this is the start of the journey. 

If you haven’t responded or made any payment, you’ll start receiving reminder letters. These are not just random notes but serious reminders. These letters will carry more weight, urging you to address the situation promptly. But what happens next if these reminders are ignored?

They will try to reach you to discuss the outstanding debt and to arrange a suitable repayment plan.

Still not responding? Well, don’t be surprised if Lantern decides to escalate things. One of the more serious steps they can take is to arrange a home visit..

You’ve ignored the calls and letters and turned away the home visitor. You might think you’ve gotten away, but wait, there’s more. If Lantern can’t recover the debt through conventional means, they might resort to legal proceedings. 

Lantern may decide to obtain a County Court Judgement (CCJ) against you. This is a court order that can create serious complications for you. This is not the end of the story.

Post-CCJ, if the debt remains unpaid, Lantern could take enforcement action. This might include instructing bailiffs to visit your property. This is indeed a serious situation. 

Still, do not lose your hope. Remember, at every stage, Lantern Debt Recovery’s goal is to recover the debt while maintaining a constructive relationship with you. You have options at every step, whether it’s negotiating a repayment plan, disputing the debt, or seeking professional advice.

So, now you know what could happen if you ignore Lantern and its attempts to recover the debt. But there are plenty of methods to keep up with the situation smartly. So keep reading. You will find the best solutions if you are stuck in Lantern Debt. It is not scary as you think. 

Actions to Take if Repaying Lantern isn’t Financially Feasible

Can you ignore Lantern debt collectors? Technically, yes. But it’s not advisable. Instead, if repaying your Lantern debt isn’t financially feasible, here’s what you can do.

Although the thought of paying off a lot of debt might be very daunting, assistance is available. Many charities in the UK, like the Money Advice Service and Step Change, offer free debt advice. They will evaluate your specific circumstance and assist you in coming up with a workable solution.

At first, Lantern could give you a smaller payment to settle the obligation.

You must create a payment schedule for the entire debt if you are unable to make an offer or can but cannot afford to. A budget that details your income and expenses may be required to demonstrate how much you can actually afford to pay.

Furthermore, it must be feasible. To get the debt monkey off your back, don’t try to cut shortcuts. Simply keep in mind that a repayment plan is all that is necessary if you feel under stress.

If you attempt to repay too much, you will only have to refinance or face legal action if you fail to make a payment that you have promised to Lantern.

If you’re having trouble making all of your payments and Lantern isn’t your only obligation, it could be worthwhile to look into insolvency options like a Debt Management Plan (DMP) or an Individual Voluntary Arrangement (IVA).

Where can I get Additional Information about Lantern-associated Debt?

For additional information, the best source is Lantern’s website. You can also consult a debt advice agency or an attorney. But before we conclude, you might be wondering how to get in touch with Lantern.

Contact Information for Lantern Debt Recovery Services

If you need to get in touch with Lantern directly to either query a debt or to make a complaint to them, here are their details:

Lantern’s opening hours for phone calls are 8 am to 7 pm Monday to Friday and 9 am to 2 pm Saturday. They are closed on Sunday.

Complaints about Lantern

If instead, you need to complain about Lantern Debt Recovery Services to the Financial Ombudsman, you can do so here:

Key Points

Formerly known as Motormile Finance, Lantern Debt Recovery UK is a legitimate debt-collecting business with headquarters in Leeds.
If they have acquired a debt you owe from a creditor, frequently at a discount, they could get in touch with you.
Check the debt’s legitimacy and ownership if you have any doubts before making any payments.
If you are unable to pay back the debt, talk to Lantern about a repayment strategy or look into UK debt relief options.
Since Lantern is subject to Financial Conduct Authority regulation, its approach to debt collection must adhere to a set of rules.

FAQs

References

www.fca.org.uk