What about creditor pressure?

What can I do if creditors are pressuring me for payments I cannot afford?

Unless you’ve been included in a marketing campaign, it’s unlikely nowadays that you’ll ever hear from your lender unless you do not keep up with the contractual repayments as set out in the Consumer Credit Agreement. However, once you do miss payments, you can expect the lender to be in contact regularly until the situation has been rectified to their satisfaction; this is not unreasonable and they are entitled to take reasonable steps to recover the money or get you back on track, BUT they are not allowed to pursue you to the point of harassment.

In all likelihood, pressure from creditors for payments will arise because they are not aware of your money problems. At best, the creditor will have a completed, but out of date, application form on file which sets out your financial situation as at the time of the application, and of course the record of repayments made to date. In addition, if they care to look, they may have some records of your income and outgoings from your bank account, if you obtained the loan etc from your own bank.

Given this out of date information, they may not be aware of a major change in your financial situation – events such as redundancy, divorce, sickness etc – which will have an adverse effect on your circumstances. They may also not be aware of any further loans or credit cards you have taken out since your loan etc from them, with the consequent impact on your finances!

Many creditors are pretty good when advised of changes which impact upon your ability to repay, and often will be willing to accept reduced payments for a short period to help you get back on your feet. Realistically however this may not be the answer to your money problems, and simply delay the need for more difficult decisions.

Pressure from creditors can be quite intimidating, particularly if they have employed a collection agent to handle the recovery of the debt on their behalf. Such third parties tend to work to rigid timescales and be down your throat if you do not comply. Furthermore, they can be perceived as having little interest in your circumstances, with the sole aim being to gain some payments from you to obtain their bonus.

In such circumstances, it is time to speak to our team of experts at National Money who will handle all of the negotiations and payment arrangements on your behalf with either the lender or their agents. We have vast experience of dealing with all creditors and their collection agents; we will know most if not all of them, and know how to handle the arrangements for the benefit of you and your creditors.

Speak to our team of experts on 08448 247 260 for support and guidance on how to sort out your money problems.

Or ask us any Debt Management questions using the form below: