Unpaid debt can get you in quite a lot of trouble. There are many kinds of legal actions that you might have to face. The creditors may even put pressure on you to repay them by selling some of your property. Sometimes, they might even recover the money through a debt recovery agency. This is a quite common method used by both private and government organizations to recover their debts.
There are many agencies throughout the UK who collect debts, and Moorcroft group is a very prominent name among them. It is one of the biggest and among the top debt recovery companies in the country.
Now, the thing about these agencies is that they get the same legal powers as the creditor. That means they will chase your debt as relentlessly as your original creditors did. So, you must not ignore any calls or reminders that you get from them. Understanding how they work would help you in dealing with them.
How does Moorcroft Recovery Work?
Moorcroft Debt Recovery Ltd., or any debt collecting company for that matter, is contacted by creditors under various circumstances. Sometimes, they simply collect the debt on behalf of the creditor. In such cases, they keep a percentage of the money as payment for their services.
A creditor will hire the services of a recovery agency when they can’t collect the debt themselves. Sometimes, they might also give up every expectation that you’ll repay them, in such situations, they would sell your debt to one of these agencies. In these cases, the debt passes on to the agency, and whatever money they collect.
How does Moorcroft Debt Recovery Ltd. Collect Debts?
The same way a bailiff comes to collect a debt, Moorcroft group uses their field agents. When you owe Moorcroft, you will get calls, reminders, or letters from them. They will eventually send a field agent to your residence, though not unannounced. You would be notified before they visit you. These agents would chase your debt until they’re cleared.
Does Moorcroft Debt Recovery Ltd. collect all types of debts?
Moorcroft Debt Recovery generally collects priority debts such as council tax, criminal fees, etc. In addition to that, they also provide debt collection services to some companies. The HMRC also often collects debts through Moorcroft. So, if you have any of these debts you haven’t repaid in a long time, you can expect them to be transferred to or bought by Moorcroft group any time.
What is Written in the Letter sent by Moorcroft?
Letters from Moorcroft Debt Recovery Ltd. don’t contain any threats about taking action. They simply request you to pay the outstanding amount that you owe them. But, if you ignore their letters, it would only cause them to send more letters.
If you keep ignoring these, they would finally send a field agent to your home. So, it would be a wise decision, if you reply to the letters and let them know your financial situation.
What to do when Moorcroft Agents visit You?
Moorcroft Group can send an agent to your residence, they generally don’t do that without prior notice. If you get such a visit, there is no need to feel nervous. Even though recovery agencies have the same legal powers as a creditor, their agents don’t have the power of a bailiff.
So, they can enter your house only when you permit them. They don’t have any right to use unnecessary force or coercion. So, if you face any such harassment, you can complain about them. They don’t have the right to harass you in any way.
Can Moorcroft take control of Your Home or Possessions?
Moorcroft Debt Recovery agents cannot take control of your home or any of your belongings. They can only visit you to request payment. But, they can take control of your residential property. If other methods don’t work, they can appeal to the court for securing the debt against your home. If they win the case, they will take over your home and sell it to recover the money.
What are the Consequences of Ignoring Calls from them?
When recovery agencies call or send letters to someone, the recipient often makes the mistake of ignoring them. They might think this would be a solution, but it isn’t. So, you must avoid making the same mistake. Ignoring a call or letter would only mean more calls and letters. They just won’t stop until they have collected what you owe them. They are even known to contact people at their workplace.
You wouldn’t want to get in such an embarrassing situation. So, you must reply to their calls and letters, whenever you receive them. If you keep evading them, they will start a court proceeding against you.
What can a Debt Collector do to Recover Money?
As compared to an enforcement agent, the powers of a debt collector are very limited. They have the right to request payment from you and take part in preparing your payment plan. If you fail to make a payment, they also have the right to inquire why you were unable to do so.
However, they are not allowed to use any kind of force or pressure on you. They also can’t force their way into your residence or harass you. Moreover, you must lookout for any misleading information or unnecessary threat of legal action. If you face these, you can complain against them. A debt collector also doesn’t have any right to tell anyone else about your debt without your permission.
What if You are Unable to Pay them?
If you’re unable to pay Moorcroft due to your financial condition, it is understandable. In such cases, they might act in a considerate way towards you. After all, they follow the limitations, put by the government, on debt collectors.
Moreover, such a well-known agency won’t put its reputation at risk. Though you would need to find a solution at some point. You can try consulting debt solution companies and try to reach some kind of arrangement with Moorcroft Debt Recovery Ltd.
Can You include the Debt in IVA, from Moorcroft?
No matter how hard your situation with Moorcroft is, there are ways that can get you out of it. An IVA can be counted as one of them. If you have an IVA, you can add the debt you owe to Moorcroft group in it.
But, you would need a repayment plan and terms that they would agree to, otherwise, the arrangement won’t come into effect. Also, you must consider the benefits and risks carefully before getting into the arrangement.
You are advised to get the debt, included in your IVA, only if you owe at least £6000 to them. That is because the cost of the IVA can be quite high. So, it won’t be worth it, if you owe less than the specified amount.
How can You stop Moorcroft Group from Contacting You?
If you’re being contacted regularly, by Moorcroft for debt repayment, you probably want it to stop. But, they won’t stop calling you until you have cleared your debt. You will keep getting calls from them whenever you delay the payment.
So, the only way to stop this is by clearing your debt. In case of an IVA, if you keep paying the instalments regularly, they might let you be at peace.
How would an IVA help in Dealing with Moorcroft?
If you fulfil the conditions for getting an IVA, you should go for it. It would be very helpful to you in dealing with Moorcroft debt recovery collectors:
You won’t have to Deal with the Collectors
Since an IVA is managed by an Insolvency Practitioner, you won’t have to deal with Moorcroft yourself. The IP will manage all the dealings with the people you owe. The instalments would also be paid through the supervisor.
Affordable Monthly Payments
The payment plan would be prepared only after considering your income and spending. That way you would find the instalments to be affordable and be able to clear off a large part of the debt.
No Interests have to be Paid
If you get an IVA, it is against the rules for the creditor to charge you further interests. You just have to pay the principal amount, in monthly instalments, and the practitioner’s fee along with that.
Debt Collectors won’t be able to Harass you
After the arrangement comes to effect, Moorcroft Debt Recovery Ltd. won’t be able to call you and demand repayment. If they do so, it would be a breach of the agreement. Since the terms are legally protected, you can complain against the debt collector, if you face any harassment.
You Won’t Lose your Home
If you are worried about losing your home, an IVA would eliminate it. A creditor can’t take any legal action on you during the IVA period. So, Moorcroft won’t be able to apply in a court, to control over your house. A big part of the stress would be relieved in this way. Though sometimes at the end of an agreement period, the IP might request you to sell your property to repay the debt.
Risks you Might look out for while you are an IVA
Just like an IVA offers so many benefits, it comes with a few risks as well. So, you must consider them before opting for this arrangement with Moorcroft. Only then would you be able to make sure that everything goes according to plan.
First, you must make sure that you can pay the monthly instalments. You must not settle for an amount that seems to be a little high. If you’re unable to pay an instalment, and the IP is convinced that you can’t pay any more, the arrangement will be terminated. You must also keep the fees of the practitioner in mind.
Your IP might often request you to provide some information or sell some property to pay the debt. In such situations, not complying will put the arrangement at risk of getting terminated.
An IVA can affect your credit score as well. You can face trouble in getting loans at good rates due to this. Insolvency will stay in your credit file for 6 years. So that’s how long it will take to get your credit score back in good shape. Though you would probably want insolvency over bankruptcy.
How long can Moorcroft chase a debt?
Debt collectors, in general, can chase a debt up to 6 years. But, it is unlikely that your debt to Moorcroft will be written off as long as you don’t pay them. You would have to clear at least about 80% of your debt, only after that might Moorcroft think about writing it off, though not necessarily.
Can Moorcroft scam me?
Moorcroft Debt Recovery Ltd. is a completely legitimate and recognized company. They follow the government’s guideline about debt recovery and carry an FCA registration. Generally, there have been no reports about them scanning anyone. If you experience something like that, you can complain against them.