Handling Redwood Collections Debt Recovery might seem daunting, and yes, not everyone will have to make a payment. Yet, sweeping it under the carpet could potentially escalate into further enforcement action. What options do you have, you might wonder? Well, brace yourself as we delve deeper into your choices with Redwood Collections.
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Are Redwood Collections Debt Recovery a Scam?
No, Redwood Collections is not a scam. It’s a reputable company providing financial services and debt recovery. Misunderstandings may occur, but it’s crucial to address these diligently rather than ignore the issue.
Many people that wrongly received a debt collection letter immediately assume that Redwoods is a scam. However, as mentioned before, they are a legitimate company working from their Croydon office. Many creditors that have difficulties recovering their debt contact debt collection agencies such as Redwood that work for various businesses in industries such as:
- Household utility providers
- Government departments
Reviews on their website also show that they provide debt collection services in the homecare industry:
“I run a well-known home care provider in London. After 10 years, we sadly had our first client default. We engaged Niall at Redwood Collections and are happy to report the defaulted client paid in full within days. Excellent service…read more.”- Robert Stephenson (Google Reviews)
So this further proves that Redwood debt collectors will take on cases in any industry. Their reviews showcase various companies in different industries, including construction companies, e-commerce businesses, accountants etc.
What Is This Letter from Redwood Collections Ltd?
A letter from Redwood Collections usually signifies an unsettled debt they’ve been tasked to recover. This professional entity works on behalf of companies to recover owed money, helping to ease the strain on court systems.
This letter is called a Letter Before Action (LBA). It is a type of warning letter that requests you to pay before they take legal action, such as a Country Court Judgment (CCJ). Despite how serious this sounds, there are a few steps you can take in order to stop it from escalating into legal proceedings.
Why Redwood Collections Send Letters to the Wrong People
Occasionally, Redwood Collections may inadvertently send letters to the wrong individuals due to outdated or incorrect information. In such situations, it’s essential to contact them directly to resolve the misunderstanding.
Finding out the accurate address in which their past clients and customers live is a difficult task. So it is their responsibility to track them so that they can send the LBA to the correct person. In some cases in which they are unable to find out the accurate address, they will simply:
So it is possible to receive a debt letter that’s not for you, let them know that there has been a mistake. But some debt collection agencies may not straightaway believe such claims so it’s important to have proof.
A prove the debt letter is one way in which you can ask them to prove that you owe the debt. If they don’t give proof, don’t pay, and they cannot continue to contact you. If they do, it will be classified as harassment.
Even if you recognise the debt, you can still request a proof of debt letter if they haven’t already provided it in the LBA. Even If they don’t show you proof, you don’t have to pay.
Will Redwood Collections Provide Proof in the LBA?
Yes, upon receipt of a ‘Letter Before Action’ (LBA) from Redwood Collections, you’re entitled to request proof of the claimed debt. As per UK laws, they’re obligated to provide evidence substantiating the debt.
Getting proof of the debt is a process that takes up a lot of time. Because of this, most debt collection companies prefer to try their luck instead. Simply, they send out letters of the debt to individuals, hoping that they will pay without asking the company to show proof.
In most cases, this trick works, and many debtors make the payment without requesting proof.
“These guys worked fast; they took away the need for me to have to chase and took the effort away from me.
As soon as I engaged, they contacted me, talked about my requirements, and then sent out letters. Immediately within a week, I got results…read more”- Tony Gruet (Google Reviews)
As seen in the above review, most debtors pay immediately after the initial LBA. Most solicitors and legal teams provide proof of the debt in order to avoid any delays. But since Redwood is not a legal team, they don’t have much legal abilities. So they are not known to send proof of the debt along with the LBA.
Request Proof from Redwood Collections Debt Recovery
This is exactly why you should ask for proof of the debt before you pay Redwood Collections. In order to do this, you need to write to them requesting a prove the debt letter. In this case, you will have to inform them in writing that you received the LBA and quote any reference numbers.
It’s also important that you mention that if they continue to contact you without showing proof, it will be seen as harassment, and you will report them to the Financial Conduct Authority and the Financial Ombudsman.
Three Possible Outcomes of Your Prove the Debt Letter
After you request the proof of debt letter, Redwood Collections could act in three different ways:
Redwood Collections Croydon has proved My Debt
Receiving confirmation of your debt can be distressing. However, don’t fret; you have options. Debt solution options are available, which include setting up an affordable repayment plan or seeking advice from debt charities.
However, keep in mind after they prove the debt, it is crucial that you pay them if you want to avoid a CCJ. There is only one other option to avoid having to pay them, and that is if your debt is statute-barred.
If you recognise the debt and you’re able to pay them, it’s best that you do so. This way, you won’t have to pay interest for it, and getting rid of this debt collection company will bring you peace of mind.
However, just because you cannot make the payment, you will not be issued a CCJ or orders for repossession. Just like you, Redwood Collections does not want to take that approach as it is time-consuming and troublesome for them as well. So the best option, if you can’t pay, is to request a payment plan.
But make sure to only agree to a payment plan that you can manage to pay. If you are unable to pay even after a payment plan, it will make things worse. If you want advice on this, contact a debt charity for free guidance.
Is a Payment Plan My Only Option?
There are many ways to escape debt. But the suitability of each option depends on the circumstance of the individual, such as the number of debts the person has.
For example, if you owe money to Redwood Collections and you also have other debts that you owe to different creditors, an IVA is the best option for you. With an IVA, you can pay off multiple debts by making payments monthly. But after five years, the debt is wiped off, and you no longer have to pay.
So this means you don’t have to pay off your debt entirely, as some people wipe as much as 90% of what they owe after the 5-year time period. Other options are:
- Declaring Bankruptcy
Understand Your Rights When Interacting with Redwood Collections Ltd
Interacting with Redwood debt collectors involves understanding your rights. They must follow the FCA’s conduct rules, treat customers fairly, and provide reasonable time for debt repayment. In case of violations, customers can report them to the FCA. Some things they are not allowed to do are:
- Call you continuously every day
- Contact you at work
- Discuss your debts with anyone other than you
- Threat you with repossessions
- Request entry into your house
- Contact you in ways that you have specifically asked them not to
Will Redwood Collections Debt Collections Come to My Home?
Typically, Redwood Collections employs letters and phone calls for debt recovery. However, in extreme situations, they might resort to a home visit. If this happens, tell them to talk to you over the phone.
Debt collectors have the right to knock on doors. But this doesn’t mean you have to let them in. But know that they are debt collectors, not law enforcement officers.
Law enforcement officers with a judgement from the court can come into your house and repossess valuable items. Redwood debt collectors don’t have the right to do this. If they tell you otherwise, report them to the FCA.
Owing money is a stress-inducing situation, but there’s a glimmer of hope for some debts. Specifically, if your debt is ‘statute barred’. This term might seem daunting, but it’s your chance to breathe easy when dealing with debt recovery companies like Redwood. Let’s unravel what it means and when you might not have to pay Redwood debt collectors.
A debt becomes ‘statute barred’ if it’s at least six years old and meets specific conditions. This rule is designed to prevent court systems from becoming overloaded with stale debt cases. It’s based on the Limitation Act 1980, a vital piece of legislation that provides a lifeline to those encumbered by old debts.
In order for your debt to be statute-barred, it should be six years old. So how do you know if your debt is ‘statute barred’? Here are the key conditions:
- You, or anyone else liable for the debt, haven’t made a payment towards it in the last six years.
- You have not made any communication with your creditors or the debt collection agency within that six-year period.
- A CCJ has not already been issued for the debt within that six year period.
If you have already acknowledged that you owe the debt or have made a payment, you should wait six years more before it can be statute-barred.
When a debt is ‘statute barred’, Redwood debt collectors, like any other debt recovery company, must cease all recovery actions. If they contact you, you should inform them about the ‘statute barred’ status of the debt. If they continue to press, you can report them to the Financial Ombudsman Service.
Speak to a debt advisor if Redwood Collections does not accept your claim. They will tell you what you should do and what your next steps are.
How to Deal with Redwood Debt Collection
Handling a debt collection company like Redwood Collections can seem like a daunting task. But here are some steps that will make it much easier to handle:
Communicating proactively is key when dealing with Redwood debt collectors. It can help you steer the situation in your favour. Don’t ignore their calls or letters. Instead, respond promptly and assertively. Keep in mind avoiding the situation won’t make the debt go away.
Have you received a debt recovery letter from Redwood? First, confirm if it’s actually yours. There’s always a chance of mistakes happening, and you might be a victim of such an error.
You can request Redwood debt collection agency to ‘Prove the Debt’. Send a written request, asking them to provide proof that the debt belongs to you. Once you receive the evidence, verify it carefully. If it’s indeed your debt, you’ll have to plan your next move.
If they show proof, you might consider setting up a payment plan with Redwood debt collectors. Alternatively, you could explore other routes like debt relief orders or individual voluntary arrangements. The key here is to find a solution that fits your financial circumstances.
Having a solid record of your communications can come in handy should there be any disputes in the future.
What if the debt is not yours? Or what if it’s an old debt that is ‘statute barred’? If Redwood debt collectors are unable to provide satisfactory proof of the debt, you can send a ‘Prove the Debt’ letter. This forces them to either provide proof or cease collection activities.
Similarly, if the debt is more than six years old and you haven’t acknowledged it during this period, it might be ‘statute barred’. In such cases, you can send a ‘Statute Barred’ letter to the debt collector. This should put an end to their recovery attempts.
Checking for Other Debt Collectors
Managing debt might involve multiple companies, such as PRA Group, Lowell, and Cabot Financial. Regularly reviewing your credit report and bank statements will help identify any overlooked debt collectors.
Redwood Collections Debt Contact Information
You can contact redwood collections using the below information.
020 8080 3391
- Redwood Collections is a legitimate debt collection agency tasked by businesses to recover unpaid debts. Receiving a letter from them usually signifies an unsettled debt they’re working on.
- Some people may find that they have received a letter from Redwood Collections in error due to outdated or incorrect information. In such cases, it’s crucial to contact Redwood debt collections directly to resolve the situation.
- As per UK laws, upon receipt of a ‘Letter Before Action’ from Redwood Collections, individuals are entitled to request proof of the claimed debt. Redwood debt collectors must provide this evidence.
- If the debt is confirmed, individuals have various debt solution options available to them, including setting up an affordable repayment plan or seeking advice from debt charities.
- Apart from a payment plan, other options like debt relief orders, individual voluntary arrangements, or even bankruptcy could be considered based on the size of the debt and personal circumstances.
- When interacting with Redwood debt collectors, it’s important to know your rights. They must follow the Financial Conduct Authority’s (FCA) conduct rules, treat customers fairly, and provide reasonable time for debt repayment.
- For old debts that meet specific conditions, there’s a possibility they may be ‘statute barred‘. This means they’re no longer enforceable, and Redwood Collections must cease all recovery actions for such debts.
- If Redwood Collections doesn’t agree to your claim that a debt is ‘statute barred’, seek professional advice from a debt advisor or solicitor to understand your rights and the best course of action.
- Redwood Collections may resort to a home visit in extreme cases. However, you’re entitled to ask them to leave and request written communication instead.
- In case of any issues with Redwood Collections, individuals can report them to the Financial Ombudsman Service.
Yes. They are legitimate companies regulated by the FCA.
If you’ve received a letter from Redwood debt collectors, it’s likely because you have an outstanding debt that they’ve been tasked to collect. The letter should detail the debt’s origin and how to repay it.
If you pay them or respond to them, Redwood Collections can take you to court.
No, Redwood debt collectors cannot enter your home unless they have a court order. They can, however, send ‘field agents’ to discuss the debt. These agents have no legal power like bailiffs do. Thus you can request them to leave and asked them via a letter stating that you prefer written communication only.
If you can’t pay the debt, communicate with Redwood debt collectors and explain your situation. You can also seek advice from debt charities or a financial advisor.
Ignoring debt collectors is not advisable. If you ignore their attempts to contact you, it could escalate the situation, leading to potential court action.