Debt and The Law

Once you enter a credit agreement, you will have signed a copy of "Terms and Conditions" from the Company you are borrowing from. One of the obvious conditions of any credit agreement is that the loan be repaid.

In the event of financial difficulties and you can no longer afford to keep up with the repayments the "creditor" has various options available to them in order to collect the repayment of the loan.

The first stage of collection is usualy done via the phone, failing this the creditor may call you at home or even at work.

If the debt remails unpaid, the creditor may issue you with a default notice which often appears on your personal credit file and can impair your credit rating. If you have received a default notice and can not pay the debt then it's definately time to consider an IVA before it's too late. The next stage for the creditor after the default stage will be to either issue you with a County Court Summons or to employ the use of debt collectors/bailiffs to visit you at home and seize your assets.

If your credit agreement is regulated by the consumer credit act 1974, then the default notice must be delivered to you before legal proceedings can commence. Use the default notice as a bench mark. If you receive one and can't pay the debt then it's time to call debt-2-go for some advice.