Navigating the murky waters of debt collection can be daunting, especially when MKDP LLP comes knocking. In 2023, are you obligated to settle debts claimed by them?
Let’s dive deep and unmask the facts about MKDP, associated with the bustling Milton Keynes development, and discover your best course of action.
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If you received a debt collection letter from MKDP Debt Collectors, you might be wondering if you should pay them or not. This company purchases consumer debt from businesses and chases debtors to collect the debt.
So, if you’re wondering what you should do in a situation like this, this guide will unravel everything you should know about MKDP and what steps you should take to handle them.
Who Are MKDP LLP?
MKDP LLP is one of the companies in the UK that provide debt collection services. They are based in Salford, Manchester. MKDP, also known as Milton Keynes Development, has been active in providing debt collection services since October 2019. Their company registration number is OC349372.
They don’t have a website. This makes digging for information a bit of a task. However, government records provide some substantial information about them.
What particularly stands out is that there are multiple organisations that have a stake in the business. Robinson Way, Hoist Finance UK Limited, Compello Operations Limited, and MKE (UK) Limited are on the list of persons with significant control.
Their speciality is buying ‘bad debt’ instead of collecting for others, which means they might own that debt you forgot about.
And if you’re curious about where they’re stationed, MKDP’s base is at Quays Reach, Carolina Way, Salford, M50 2ZY, England. But their reach extends all over the UK.
As an umbrella firm, some companies under them include:
- Robinson Way Ltd
- Hoist Finance UK Ltd
- MKE UK Ltd
- Compello Operations Ltd
So what does this all mean for you? Well, MKDP might just be more connected to your financial past than you think. Could they hold the key to a debt you’ve overlooked? Stay tuned as we explore further.
Are MKDP Debt Collectors a Scam?
No. They’re indeed registered debt collectors, but they have some tactics that could catch you off guard. They say you should pay debts they can’t enforce.
Some individuals stated on online forums that they were told to pay for debts long forgotten, which MKDP admitted they couldn’t legally pursue. That’s why it’s essential to verify any debt claims, as it will help to ensure that it is legitimate or enforceable.
Why Are They Contacting You?
There’s a high chance that you might not have heard about MKDP debt collectors before (unless you were contacted by them for a different debt in the past). This is because they buy ‘bad debts’—money owed to companies, big or small, that haven’t been paid back.
Creditors sell debts they can’t collect on to MKDP. So, if you owe money to another company and they purchase the debt from them, this could be the issue.
They pay a small amount of money in order to purchase the debt and later on chase debtors to recover the debt, which usually consists of added interest and fees.
So, if you’re being contacted by them, it’s because they might have purchased a debt from your creditor and are hoping to recover it.
Should I Ignore Letters from MKDP Debt Collectors?
Disregarding MKDP’s attempts to reach you could complicate things. If you’re not sure the debt is yours, the best step is to face the issue head-on. If direct talks with MKDP feel daunting, there’s another route. Touch base with the original lender.
This will help you to know if they sold your debt.
Should I Pay MKDP Debt Collectors Upfront?
You should not pay MKDP without asking a few questions first. This is because paying without checking could mean losing money you shouldn’t have paid.
Even debt collection companies can make mistakes when it comes to the amount you owe. Sometimes, they might have even mistaken you for someone else, or your debt might be statute-barred, and you might not have to pay at all.
So, confirming if you actually owe the debt is crucial. If you’re struggling to make payments every month, whether it be bills or money you owe to creditors, do not pay this debt collection company.
If paying them would worsen your situation, we recommend you assess your debt management options before you make a decision.
Can MKDP Debt Collectors Take Me to Court?
Yes, MKDP has the power to take you to court if you don’t pay up. But they prefer negotiating directly as the court costs are no joke but considerably high. First, they will send a default notice.
It’s their way of saying, “Let’s settle this”, giving you a fortnight to respond before things escalate. A default notice is the most common form of warning letter.
You will receive a default notice once they start cancelling your account. Once you receive this warning letter, you get two weeks to make the payments. If you don’t, they will consider your account as defaulted, and they might take your case to court.
If you still don’t settle the dues or respond to them, the company will send you a claims form. This letter is a warning that states they will be going to court if they don’t receive the payment.
Receiving this letter means you should complete it and send it to them. You can also make the payment and request them to stop any legal action.
If they take you to court, they will file for a County Court Judgement (CCJ) against you, which will warn you to pay the debt. This normally consists of a monthly repayment, but it is up to the debt collection agency.
Can MKDP Debt Collectors Repossess My House?
It is unlikely that MKDP will repossess your house. But, if you receive a County Court judgment (CCJ), they can file for a Charging Order. In this case, your debt will be secured against your house.
If your debt is secured against your house, they have the right to seize it if you refuse to pay. Also, note that repossession of your home might happen only if the amount you owe is extremely large (Usually closer to the value of your home or more).
MKDP Debt Collectors are Harassing Me. What Can I Do?
Note that receiving multiple phone calls and several letters from MKDP Debt Collectors cannot be considered harassment. This is because debt collectors have the right to reach out to you in order to recover the money you owe.
But if they harass you, make a complaint. Since they are an umbrella company that covers multiple companies, it’s best to file a complaint to the relevant firm on the letters you receive.
To file the complaint, the following are some available channels:
- Phone: 01908693571
- Post: MKDP Debt Collection Agency, Trade Pro House, Seebeck Place, Knowlhill, Milton Keynes, MK5 8FR, United Kingdom.
What Do I Do When I Receive a Letter From MKDP Debt Collectors?
Letter from MKDP? Don’t Panic. Here’s a step-by-step on how to handle it without breaking a sweat.
- Credit Report Check: First off, hit up a credit report site like Credit Karma. This will help you to check if the debt is legitimate. If the debt is not registered, that means it’s not legitimate.
- Original Creditor Confirmation: The letter should name-drop the original creditor. Give them a ring to see if they’ve handed off your debt to MKDP. This will confirm if the claims are legitimate.
- Proof of debt: Demand proof from MKDP. In order to do this, send them a ‘Prove the Debt’ letter. No evidence of the debt means they can’t chase you for cash.
- Statute-Barred Status: Debts have a shelf-life. In England, if it’s over six years old, it may be statute-barred, meaning MKDP’s legal power might just be dust in the wind. So, if you find out that your debt is statute-barred, you don’t have to pay them even if they send you multiple debt letters.
What Do I Do if I Can’t Afford to Pay MKDP Debt Collectors?
If you’re struggling to pay off your debt, a few options you can consider are as follows:
- Payment Plan Proposal: Reach out to MKDP for a payment plan that fits your budget. It’s all about what you can manage without missing your other bills.
- Settle for Less?: if you have some cash but it is not enough to cover the whole payment, talk it out with MKDP. Offer a smaller amount to see if they’ll settle for less. Always offer a lower amount than what you can actually pay. So once the negotiation is done, you will eventually pay the amount you can afford, or even less.
- Debt Management Plan (DMP): If you’ve experienced a negative circumstance, like a job loss, a DMP might be your financial lifesaver, freezing interest and taking the pressure off as you should pay less than the minimum on your debts every month.
- Individual Voluntary Arrangement (IVA): An IVA could be the umbrella in your financial storm, bundling your debts into one manageable monthly payment.
10 Steps to Deal With MKDP
MKDP’s letter in your hands can feel daunting, but it’s not the end of the world. Equip yourself with these steps and tackle the issue head-on.
Brushing off MKDP’s calls and letters can backfire. They’re persistent, and ignoring them only escalates the situation. This is why most debt collectors tend to be legally aggressive in getting people to pay. They expect to make a profit by collecting your debt. If you don’t pay, it’s a huge loss for them.
If you ignore them, it will worsen the situation. You’ll start getting multiple calls and letters with time. This is a type of tactic they use to pressure you into paying. However, if you ignore all their reachouts, they might even visit your home.
Even though this is a stressful situation to be in, by being proactive, you can avoid a lot of complications and further issues.
Dive into the details. What does MKDP say you owe, and from when? Line up your documents, bank statements (if you bank online, you can get a detailed history of your transactions from a few years ago), and any related contracts.
Once you have all this information in hand, you can efficiently handle this issue. You will also be more familiar with the case as you know what you have and haven’t paid.
Debt collectors like MKDP have rules to follow. They can’t threaten or mislead you. Learn these rights. It’s your shield. Debt collection companies should follow the rules of The Financial Conduct Authority (FCA). These rules consist of how debt collection companies, as well as bailiffs, should act when dealing with debtors.
There’s no proof to confirm if MKDP adheres to these rules or not. They are obligated to. You also have certain rights when it comes to dealing with debt collection companies. This includes:
- They can’t threaten you over the phone or through letters. And they also cannot come to your house to threaten you in person. Lying to you is also not allowed, and debt collectors also cannot force you to take on more debt to pay off the existing one.
- They cannot harass you by calling you continuously at unsociable hours, and they also cannot force themselves into your house. If you tell them to know your preferred mode of communication and request them to stop using other methods, they should respect your decision.
- They cannot cause you any confusion by purposely using legal jargon in order to intimidate you into paying. Debt collectors also cannot tell you that they have certain powers, which, in reality, they actually don’t. Sending you letters that look like court documents in order to confuse you is also not allowed.
- They cannot speak to anyone else about your debt if it is under your name. This includes your relatives, friends, colleagues, etc. The same goes for employers and neighbours.
MKDP has certain rights when it comes to debt collection. So, if you’re dealing with them, it’s crucial that you understand these. It will help you to make better decisions about your next steps.
Some legal debt management powers that any debt collection companies have include:
- They have the right to reach out to you through calls, letters, etc. And when doing this, they can use details you haven’t provided to them before.
- They can add fees such as penalties and interest if you don’t pay. But they cannot make them excessive. They can only apply them to your debt.
- They have the right to register a default against your file. This is a red flag on your credit report that lenders will be able to see before offering you credit. Due to this, you will find it difficult to get credit as lenders will perceive you as a high-risk customer. This lasts on your credit report for a period of six years.
- They have the right to file for a County Court judgement (CCJ). This is a warning from a court judge asking you to pay. It includes the amount you should pay every month and the deadlines for your payments. This also has a negative impact on your credit report as it lasts for six years.
- They have the right to petition for Bankruptcy. Note that this will greatly impact your long-term financial health. You will also have to sell your assets in order to cover the total cost of your debts.
Contact MKDP and discuss your debt with them. Be prepared and know what to say. And remember, mail is an option if phone calls feel too intense. Since this debt collection company does not have a website, you can contact them using the information in the letter you received from them.
The letter usually includes information such as their phone number and return address. You can also reach out to them using their office address if you prefer to write to them instead. Their office address is Quays Reach, Carolina Way, Salford, M50 2ZY, England.
Ask MKDP for solid proof of the debt. No proof, no payment. It’s that simple. According to Section 7 of the FCA’s Consumer Credit sourcebook, debt collectors are obligated to show you evidence that you owe the debt.
If you inform the debt collection company that your debt is settled or dispute it, they are obligated to prove otherwise. This will buy you more time to handle the issue while also giving you a clearer idea of what you owe.
If MKDP is unable to prove that you owe the debt, they don’t have the right to continue chasing you for the debt.
Is the debt old? It might be too late for them to collect. Check the age of your debt against the six-year limit. This is usually six years. But this depends on the type of debt, and some debt can be enforceable for a very long time.
Debts that are too old and cannot be enforced are called statute-barred debts. The Limitations Act 1980 lists down on whether or not a creditor can reclaim the debt. For a debt to be statute-barred, it should meet the following criteria:
- You have not made any payments in the last six years
- You have not admitted to owing the debt in the last six years
- You have not received a CCJ for it.
If all of the above are yes, then your debt might be statute-barred. Note that your debt still exists, but debt collectors cannot go to court against you for it.
If the debt’s legitimately yours, and you’re unable to afford it, consider a payment plan. This could ease the burden without draining your wallet all at once. But note that debt collection companies are not obligated to accept your offer for a payment plan.
However, paying off the debt is a much better option than going to court for nonpayment.
If you’re finding it difficult to pay off the debt, you have the option of taking up a debt solution. A few debt solutions available in the UK include:
- Individual Voluntary Arrangements: allows you to pay an affordable portion of your debt every month, and this amount is divided among your creditors. And during the IVA period, your debtors agree not to contact you. After the 5 to 6-year IVA period, any remaining debt gets written off.
- Debt Consolidation Loan: helps you to clear your current debts and have one payment of your debt every month. This is much cheaper than having to pay multiple debts every month.
Note that while taking up the right debt solution can help you write off debt, the wrong one will be expensive and can worsen your situation. So, we recommend you get some advice from a debt charity. They will guide you on the best course of action.
Alternatively, feel free to fill out our online form, and our MoneyAdvisor Team will guide you.
Feel wronged by MKDP? You have the right to complain first to them. This will allow them time to resolve the matter. But if you don’t receive a satisfying response or they don’t look into your matter, complain to the Financial Ombudsman.
They will look into your case and take necessary action against MKDP.
MKDP LLP Debt Collectors Contact Details
Need to Contact MKDP? Here’s How!
| Website: | http://www.mkdp.org.uk |
| Phone number: | +44 (0)1908 254321 |
| Email: | email form |
| Address: | Milton Keynes Development Partnership LLP Civic Offices 1 Saxon Gate East, Milton Keynes MK9 3HG |
Drowning in Debt?
If you
- Credit Check: First things first, pull up your credit report and check if there are any debts that you might have missed out on.
- Mailbox Check: Look through your emails and posts for any debt reminders.
- Court Record Search: Could there be a CCJ filed against you? Time to check.
- Bank Statement Scan: Not recognising a collector’s name on your statement? Investigate to confirm if they’re collecting a debt.
There’s a whole world of debt collectors out there, each with their own set of debts to collect. For example, Lowell Financial and PRA Group purchase debts from different credit card companies such as Barclaycard. In contrast, Cabot Financial is known for collecting for the DVLA.
If MKDP doesn’t fit the bill, could others be knocking at your financial door? Stay alert, stay informed, and know that if things don’t add up, the Financial Ombudsman Service is there to help.
Feeling overwhelmed? Remember, you’re not alone. With each step, you’re moving closer to clarity and control.
Key Points
- Ignoring letters and calls from MKDP can lead to increased pressure and potential legal action. Always respond proactively to their attempts to contact you.
- In certain circumstances, UK residents may have the legal right to have some of their debt written off. It’s worth investigating if you qualify for such measures.
- Before engaging with MKDP, ensure you have all the necessary documentation concerning the claimed debt, such as original agreements and related correspondence.
- Familiarise yourself with the legal limitations and obligations of MKDP. They must operate within the guidelines set by the Financial Conduct Authority (FCA).
- Verify whether the debt in question is statute-barred, which would mean MKDP is no longer legally able to enforce payment.
- If repayment is a struggle, consider structured debt solutions like Debt Management Plans (DMP) or Individual Voluntary Arrangements (IVA) to manage the repayments more effectively.
- If you believe MKDP has overstepped its bounds, be aware of how to lodge a complaint, starting with MKDP’s internal process and potentially escalating to the Financial Ombudsman Service (FOS) if necessary.
