I'm in a vulnerable situation - should I let the DCA know?
Both sudden shocks and chronic conditions can make people vulnerable.
Make sure your creditors know if this is you.
Vulnerability can mean:
Your creditors can offer support if they know what your situation is.
Will a DCA add more interest and charges?
Your original creditor may stop interest and charges when your account defaults.
Interest and charges also often stop when a debt is sold to a DCA. But not always.
Sometimes a DCA will continue adding interest and charges as allowed in your original contract.
If the original creditor still owns the debt, they may add more interest and charges too.
I have more than one DCA contacting me about the same debt – which one do I pay?
Only one company should contact you about a debt.
Tell the original creditor that more than one company is contacting you for the same debt.
- Some DCAs have many trading names. This makes it look like more than one company is contacting you
- Check the letters you receive. If the return addresses are the same, it is probably the same company
- You can ask the collection agency to contact you using only one trading name. This can help avoid confusion
A DCA is contacting me about a debt that is not mine
This can happen if a DCA is looking for someone with a similar name to yours.
Read more about being chased for a debt not in your name.
How do I know the DCA is real?
Most debt collection agencies in the UK are:
- Regulated by the Financial Conduct Authority (FCA)
- Hold a valid consumer credit licence
- Are also members of trade bodies such as the Credit Services Association
To find out, you can:
- Contact the FCA to check if a collection agency is licensed
- Check the FCA register.
- Check letters for the logo of a trade body and contact them
- Ask us. We know all major UK DCAs and can tell you who is real