Have you received a letter from Property Debt Collection (PDC) and you’re not sure what to do next? You’re not alone. Many people find themselves confused and worried when faced with debt collection letters.
This guide will help you understand what Property Debt Collection is, how to handle their communications, and what your options are. But first, let’s delve into the nature of Property Debt Collection LBAs and the steps you should take when you receive one.
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What Really Are Property Debt Collection LBAs?
Property Debt Collection LBAs, or Letters Before Action, are formal written notices sent to individuals or businesses that owe money on a property-related debt. These letters serve as a final warning before legal proceedings are initiated to recover the debt.
Here’s a breakdown of their key components and purposes:
The main purpose of sending an LBA is to inform you of the outstanding debt and the creditor’s intention to take legal action if the debt is not paid. Then, to provide you with an opportunity to settle the debt or negotiate a payment plan before legal action is pursued.
- Encouraging Settlement: The primary aim is to encourage you to settle the debt without the need for court action. This can save both parties time and money.
- Legal Compliance: Sending an LBA is often a legal requirement before initiating court proceedings for debt recovery. If the matter proceeds to court, the LBA serves as evidence that the creditor attempted to resolve the issue amicably. It demonstrates that the creditor followed the proper legal procedures and has made a reasonable effort to resolve the matter outside of court.
- Incentive to Pay: The threat of legal action often motivates you to settle your debts to avoid additional costs and legal complications.
If you ignore the LBA or fail to pay within the specified period, the creditor can proceed with legal action. This may result in a County Court Judgment (CCJ), filing an Attachment Of Earnings order or a lawsuit against you, which can have serious implications for your credit rating and ability to obtain credit in the future.
Additionally, keep in mind that Court proceedings can lead to additional costs for you, including court fees, legal costs, and interest on the outstanding debt. Thus, you need to take action faster in order to avoid these consequences.
What to Do If Property Debt Collection Agency Contacts You?
Should You Just Pay a Property Debt Collection Agency’s Debt? The first thing you should do is to verify whether you really owe them.
For that,
We strongly suggest you ask the Property Debt Collection (PDC) Agency to provide you with the written documents in order to prove you really owe them. For that, you can write a request letter titled ‘Prove the Debt,’ asking to send you written provable documents that show you really owe them.
They are bound by law to reply to you with proof. Additionally, make sure to keep a copy of the request letter and send it via a trackable mail service. This documentation will come in handy if the Property Debt Collection agency’s agents go to court without replying to you with proof.
Their reply should at least include a copy of the initial credit agreement you had with the original creditor. You are not required by law to settle the debt until they prove you really owe them.
Property Debt Collection (PDC) Agency may pursue old debts, and it’s essential to be aware of the UK’s Statute-Barred debts. There are 3 main conditions you need to fulfil simultaneously in order to get a Statute-Barred excuse from the court.
This includes:
Your debt becomes statute-barred if the above three conditions are fulfilled at the same time. As a result, your debt becomes legally unenforceable. However, note that the debt technically still exists. It just simply means that if you ignore paying the debt, they will not be able to go to court against you for it.
But just because your debts become legally unenforceable by the court does not mean your credit history will clear your debt as well. Instead, receiving a Statute-Barred excuse for your debt will negatively affect your credit history. As a result, you may face difficulties in getting new loans and credit cards in the future.
However, not all debts become statute-barred. HMRC debts and debts with a County Court Judgment (CCJ) remain enforceable for extended periods.
It’s better to seek debt advice from a debt advisor if you’re unsure about your debt’s status. These advisors can assess your debt, determine its status, and guide you on the appropriate actions to take.
The easiest way to solve this debt issue with Property Debt Collection Agency is to settle the debt in one go and get done with it.
Or, you can get in touch with them via phone call and request a payment plan if you are facing difficulties financially. Keep in mind to ask them about a payment plan in a way they get convinced enough to approve one for you. They will surely approve a payment plan if you can convince them with proof of your income and expenditure.
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Typical Debt Collection Process of Property Debt Collection (PDC)
If you do not acknowledge the debt being pursued by Property Debt Collection Agency, the company will initiate a sequence of series of general actions, as detailed below:
Can Property Debt Collection Agency Take Me to Court?
Yes, ignoring Property Debt Collection agents’ calls and messages, including the default notice, increases the likelihood that they will take legal action against you. The decision to do so often hinges on the debt’s size.
For instance, a parking fine might not be their top priority for legal action, although it remains a possibility, and the chances rise as your total debt amount increases.
Property Debt Collection (PDC) Agency will start taking the following steps generally if you ignore all their ways of reaching.
- A County Court Judgment (CCJ) makes you legally responsible for the debt if it is proven you really owe them in court.
- You can remove this CCJ if you settle the debt within 30 days of receiving this court order.
- Or else, the status of your CCJ will be updated to ‘satisfied’ and will last for six years on your credit history report if you take more than 30 days to settle the debt.
- Once a CCJ negatively impacts your credit report, you might find it difficult to get new loans and credit cards in the future.
If you ignore the CCJ, Property Debt Collection Agency’s agents will once again go to court to take a Warrant or Writ of Conduct to use bailiffs to visit your home and seize your belongings.
Sometimes, they may even take a statutory demand as well. It serves as the initial step in potentially declaring you bankrupt. Keep in mind this option is only applicable to debts exceeding £5000.
We strongly suggest that you don’t wait till things escalate to this extent. Plus, there is plenty of time in between these procedures. So you can use that time to find a better solution. At least try to get debt advice from a professional debt advisor if you feel like you cannot handle it alone.
Keep reading. We have mentioned some of the ways you can get help in solving this debt issue in the later part of this article.
Can I Stop Debt Letters From Property Debt Collection (PDC)?
You control the narrative of how you wish to be communicated with. By expressing your communication preferences to Property Debt Collection (PDC), be it via phone, letter, or email, you can align correspondence to your comfort level.
To minimise their constant reachouts, the best way to be in contact with them is through letters. You just have to request a letter stating that you prefer to communicate with them only using letters. They are bound by law to honour your request and stop all other ways of ongoing reach-out practices.
They may monitor their calls and messages to identify when you’re most likely to respond. Informing them of a convenient time for you will not only ease their workload but also empower you with more control over the situation.
How to Make a Complaint about Property Debt Collection (PDC)?
Since Property Debt Collection (PDC) is authorised and regulated by the Financial Conduct Authority (FCA), they need to follow strict FCA guidelines placed on them when conducting debt recovery practices.
Below are some of the rights you have while engaging with debt collectors like Property Debt Collection Agency’s agents.
For that:
Debt Collection (PDC) Agency will end up paying a huge fine or compensation to you if they are proven guilty of their conduct by the legal officers.
If you find hardship in dealing with the Property Debt Collection Agency, then you can use trusted debt advisory charities like Citizens Advice, National Debtline, and StepChange to take free debt advice to deal with your debt issue.
They will help you leverage their expertise to understand your rights and navigate through the complaint procedure with the Property Debt Collection Agency.
What Should I Do If My Debts Are Huge And I Cannot Afford To Settle Them?
Sometimes, you may face difficulties in agreeing to the proposed payment plans from your creditor or the Property Debt Collection agents, especially if they are financially burdensome.
In such situations, it is advisable to explore alternative debt solutions that can effectively address your debt-related concerns. In the UK, there are various alternative debt solutions to consider.
However, it’s crucial to keep in mind that each of these debt solutions has specific eligibility criteria. Selecting the right one can lead to debt resolution, while choosing the wrong one could worsen your financial circumstances.
Hence, seeking guidance from a professional debt advisor is a prudent step to take if you find it challenging to determine the most suitable debt solution on your own.
If you need personalised assistance based on your current financial situation, please feel free to complete our online form by clicking here to receive help from our Money Advisor Team.
Seek Free Financial Advice
There are a number of debt charity organisations that you could use to get professional debt and financial advice free of charge. Their advisors will inquire deeply about your debt issue and will help you in finding a reliable solution to overcome it.
Below is a list of charity debt organisations where you could get free debt help:
Property Debt Collection Ltd Contact Information
| Website: | https://www.propertydebt.co.uk/ |
| Phone: | 01992 449 403 Mon – Fri 9am–5pm |
| Fax: | 01992 449 404 |
| Email: | info@propertydebt.co.uk |
| Post: | Property Debt Collection Ltd Sherwood House, 5 Bluecoats Avenue, Hertford, Hertfordshire, SG14 1PB |
Key Points
- Property Debt Collection LBAs (Letters Before Action) are formal notices sent to individuals or businesses owing property-related debts, serving as a final warning before legal proceedings.
- LBAs inform you of the outstanding debt and the creditor’s intention to take legal action if not paid. They provide an opportunity to settle the debt or negotiate a payment plan before legal action.
- An LBA includes details of the debt, a payment deadline (usually 14 to 30 days), legal implications of non-payment, payment instructions, and proof of debt.
- Ignoring an LBA can lead to legal action, resulting in a County Court Judgment (CCJ), additional costs, and severe implications for your credit rating and ability to obtain future credit.
- Before paying a debt to a Property Debt Collection Agency, verify its legitimacy by checking your credit history and requesting proof of the debt through a ‘Prove the Debt’ letter.
- Debts older than six years with no payment, communication, or court judgment within that period may be statute-barred, making them legally unenforceable but still impacting credit history.
- If the debt is verified, consider settling it in one payment or negotiating a payment plan. Ensure you receive a receipt for any payment plan arranged.
- The process includes notification letters, repeated calls and emails, potential home visits by agents, issuance of a default notice, and possible court action leading to a CCJ.
- If taken to court and issued a CCJ, you must settle the debt within 30 days to avoid long-term credit impact. Ignoring a CCJ can lead to enforcement actions, including bailiff visits and asset seizure.
- If facing unethical practices or harassment, file a complaint with the Property Debt Collection Agency or the Financial Ombudsman Service (FOS). For assistance, consult debt advisory charities like Citizens Advice, National Debtline, and StepChange for free debt advice and support.
FAQs
If you can’t afford to pay Property Debt Collection immediately, consider discussing a repayment plan with them. You can also explore various debt solutions such as Debt Management Plans (DMPs), Individual Voluntary Arrangements (IVAs), or even bankruptcy in extreme cases. These options can help you manage your debt more effectively. Consulting with a debt advisor can provide you with tailored advice based on your financial situation.
If you are receiving frequent and distressing calls from Property Debt Collection, you have the right to manage how and when they contact you. Inform them of your preferred contact times and methods. If they continue to ignore your preferences, you can file a harassment complaint with the Financial Ombudsman. Keep a log of all calls and your requests to support your case.
Ignoring a letter from Property Debt Collection is not advisable. If you do not respond, they may escalate the situation to court, leading to a County Court Judgment (CCJ) or other legal actions. It’s better to communicate, even if it’s just to request proof of the debt or to negotiate a payment plan.
Property Debt Collection cannot repossess your home without following a legal process. They must obtain a court order before taking such action. Repossession is typically a last resort and is usually only considered for significant debts. Exploring all other debt solutions can help you avoid this severe outcome.
To determine if your debt is statute-barred, check the last date of payment or written acknowledgement of the debt. If it has been over six years (five years in Scotland) without any payments or acknowledgements, the debt may be statute-barred and unenforceable. Consult with a debt advisor or legal expert to confirm your debt’s status.
