While not everyone will necessarily need to foot the bill to Phoenix Commercial, turning a blind eye to their correspondence isn’t the wisest course of action either. The situation could rapidly grow into something much worse.
You may be in search for what are your options in dealing with them. Allow me to guide you through the possible paths you could take with it. But be prepared. Some of these options may surprise you…
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Let’s assume a scenario where you have debts. Then, you will be left with mainly two options.
They are such as;
One potential consequence of failing to resolve a debt is the pursuit by a debt collection agency, such as Phoenix Commercial.
In this article, we’ll delve into the identity of Phoenix Commercial and explore strategies for addressing their demands if they are aggressively seeking repayment of a debt from you.
Who Is Phoenix Commercial?
Phoenix Commercial is a debt collection agency that operates in the UK. They are a member of the leading enforcement and debt recovery providers, namely CDER Group. Following are some of the facts that may help you to verify their legitimacy.
Note
Now, you may have to deal with CDER Group debt collecting agents instead of Phoenix Commercial company’s agents, as they own them.
CDER Group provides debt collection solutions to businesses and extends its services to local government bodies for matters concerning council tax debts, parking tickets, and traffic offence penalties. The company is registered in England and has a headquarters in London.
Despite the sometimes imposing presence, the first step to overcoming any fear is understanding who we’re dealing with. And that’s them for you.
How Did Phoenix Commercial Debt Collectors Get Involved With Your Debt?
Phoenix Commercial Debt Collection agency can involve in your debt matter mainly in two ways.
According to online sources, Phoenix Debt Collectors are more likely to focus on buying bad debts compared to recovering debts for their clients. Therefore, there is a higher probability for them to purchase your debts. It means you now owe to Phoenix Debt Collectors instead of your previous lender if that’s the case.
Whatever the reason, hereafter, you will have to deal with Phoenix Debt Collectors if you receive a debt letter from them.
Getting in Touch With Phoenix Commercial
Depending on the type of debt you want to settle, CDER Group provides a variety of ways to get in touch. However, Calling the unified inquiry line is the quickest method to contact a company. This includes all types of debts and payments.
Their phone number is 0330 460 5295, and it is available every day of the year.
Do You Have To Pay Phoenix Commercial?
You need to verify whether the debts are really yours or not before even thinking of paying to Phoenix Commercial Debt Collection agency. Simply reply to them via a request letter titled “Prove the debt”. Within the context of this letter, ask them to send you proofs that show you really owe them.
They are bound by law to reply to you with provable proof. Their reply should at least include a copy of the initial credit agreement that you had with your original creditor. And you are not required by law to settle the debt if they fail to reply to you with proof.
Plus, remember to keep copies of your request letter and send it via trackable mail service. This copy will come in handy if Phoenix debt collectors choose to go to court without replying to you with proof.
Then, first thing you need to check whether the debts can be categorised under Statute-Barred debt. For that, You need to fulfil 3 conditions simultaneously in order to get eligibility for it.
Your debts will not be able to legally enforced by the court if they fulfil the above three conditions at the same time, sorting under the statute-barred category. But this does not mean your credit history will also be cleared as well. Surely, your credit history report will have a negative impact if you receive this excuse.
As a result, you will face difficulties in receiving new loans or credit cards in the future. Plus, keep in mind not all debts (like HMRC debts, and student loans) get sorted under Staute-barred excuse. They will last years with the capability to enforce.
It’s a matter of time before you end up paying to them if your debts cannot be categorised under the statute-barred category. Mainly, there are three options that you could use to settle the debt.
What Happens if You Don’t Settle Your Debt with Phoenix Commercial?
While most debts are typically written off after a period of six years, it is highly unlikely that Phoenix Commercial would allow a debt to linger for such an extended period without taking steps to seek resolution.
Generally, if you choose to ignore the debt, a series of escalating actions will likely occur. Here are some potential steps:
Initially, its approach will seem quite formal and mundane. You can expect to receive multiple letters and emails, each more insistent than the last. These letters and emails aren’t your typical posts. They carry heavy demands for debt repayment.
The company will call you in an attempt to reach you and work up a payment plan for the amount to be paid. These calls may occur in the middle of the night when the company attempts to reach you at home.
Phoenix Commercial’s collection agents will pay an unexpected home visit in extreme cases where their letters, emails and phone calls do not give results. These visits may occur at unconventional hours, such as in the evening or on weekends. It is one of the tactics that they use to contact you at home.
You could discover that you received a default notice. Your credit score would suffer as a result of this entry being made in your credit history.
Phoenix Commercial is determined, and if pushed, they might initiate legal action. The court will issue a County Court Judgment (CCJ) against you if the debts are proven true. Thus, it will make you legally responsible for the debt.
Phoenix Commercial will go again to the court to take a warrant or a writ of conduct to use bailiffs to visit your home and seize your belongings if you ignore the CCJ court order.
The bailiffs will seize your belongings and store them in a warehouse for some time and eventually will sell them in auction to recover the total debt and all bailiffs’ charges.
The worst-case scenario could see Phoenix Commercial issuing a statutory demand for debt over £5000. This is the initial stage in the process of declaring you bankrupt. Bankruptcy is a serious matter that directly affects your financial stability.
Will You Be Taken to Court by Phoenix Commercial?
Yes, Phoenix Commercial will surely take legal action against you if you keep ignoring their reachouts. But they will send you one last letter titled “Letter Before Action (LBA)” to notify you that they will take legal action against you if you do not get in touch with them or settle the debt before the due date mentioned in the letter.
Phoenix Commercial will take the following legal actions (as we mentioned before) if you ignore this LBA,
Taking legal action is a last resort that a debt collection agency tends to use. It’s because of the extra costs that comes with it. There is plenty of time in between before going to legal proceedings. Therefore, we strongly suggest you to use that time to find a reliable solution to your debt issue before things escalate to this extent.
Can Phoenix Commercial Have You Declared Bankrupt?
Yes, In the event that you take no action and simply attempt to ignore the debt, Phoenix Commercial may pursue bankruptcy as a means to seek repayment. This approach allows the firm to collect the debt by having it deducted directly from your wages while you are in a state of bankruptcy.
Can I Find a Debt Solution to Address My Debt Issue with Phoenix Commercial Debt Collection Agency?
If you’re struggling to manage your unsecured debts with Phoenix Commercial debt collection agency, there are several alternative debt solutions available in the UK that you can explore. However, it’s advisable to seek free advice from a debt charity to evaluate which solution best aligns with your financial situation. Here are some options:
- Debt Management Plan (DMP): This is an informal debt solution where you make a single monthly payment to gradually pay off your debts. It’s not legally binding, so you’re not committed to a minimum number of payments.
- Individual Voluntary Arrangement (IVA): An IVA is a formal agreement between you and your creditors, lasting 5 or 6 years. You make monthly payments. And any remaining debt is written off at the end of the IVA. IVAs have eligibility criteria, including owing several thousand pounds to multiple creditors and having disposable income.
- Trust Deed: In Scotland, Trust Deeds are equivalent to IVAs. You make regular payments to creditors. They can’t contact you within this period. And any remaining debt is written off at the end of the term.
- Debt Relief Orders (DRO): A DRO is suitable for those with financial hardship, no assets, and minimal income. It allows for a debt freeze and no payments for 12 months, potentially leading to the write-off of unsecured debts.
- Bankruptcy: If there’s no realistic chance of repaying your debts, bankruptcy may be necessary. Yes, it carries a stigma. But it can provide a fresh financial start and should be considered seriously.
- Sequestration: In Scotland, sequestration is similar to bankruptcy. A Minimal Asset Process (MAP) bankruptcy is a quicker, cheaper, and simpler version. It is suitable for individuals with minimal income and no valuable assets.
Seeking advice from debt charities can help you navigate these options and choose the most appropriate solution for your financial circumstances.
Or simply fill out this online form from here to receive debt advice from our Money Advisor Team.
Key Points
- Phoenix Commercial, based in the UK, operates as a subsidiary of CDER Group.
- Some UK residents may have legal avenues to write off portions of their debt.
- To prevent escalation, reach out to Phoenix Commercial to set up consistent and affordable payment arrangements.
- The Phoenix Commercial Agency can acquire your debt from the original creditor and employ assertive tactics to recover it.
- Failure to address the debt may lead to legal actions, potentially resulting in a County Court Judgment (CCJ).
- Consider seeking debt counselling from organizations like Citizens Advice Bureau for expert guidance in managing your debt.
FAQ
Phoenix Commercial might get involved with your debt in two ways.
You can contact Phoenix Commercial through the unified enquiry line provided by the CDER Group. The phone number is 0330 460 5295, and it is open 24 hours a day.
Your liability to pay Phoenix Commercial could depend on several factors. These factors can include your age, the legality of the original credit agreement, and other specific circumstances. It’s recommended to get expert advice before making a decision.
Ignoring your debt could lead to serious consequences. As a result, you may receive payment demand letters, phone calls, home visits, and possibly even face legal action.
This could result in receiving,
