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    Property Debt Collection (PDC) – Do You Have to Pay? 2024

    Have you received a letter from Property Debt Collection (PDC) and you’re not sure what to do next? You’re not alone. Many people find themselves confused and worried when faced with debt collection letters.

    This guide will help you understand what Property Debt Collection is, how to handle their communications, and what your options are. But first, let’s delve into the nature of Property Debt Collection LBAs and the steps you should take when you receive one.

    Jane Rohan

    Last updated on 17 June 2024
    Fact Checked

    Table of Contents

    1. What Really Are Property Debt Collection LBAs?
    2. What to Do If Property Debt Collection Agency Contacts You?
    3. Need More Help to Deal with Your Unaffordable Property Debt?
    4. Typical Debt Collection Process of Property Debt Collection (PDC)
    5. Can Property Debt Collection Agency Take Me to Court?
    6. Can I Stop Debt Letters From Property Debt Collection (PDC)?
    7. How to Make a Complaint about Property Debt Collection (PDC)?
    8. What Should I Do If My Debts Are Huge And I Cannot Afford To Settle Them?
    9. Seek Free Financial Advice
    10. Property Debt Collection Ltd Contact Information
    11. Key Points
    12. FAQs

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    What Really Are Property Debt Collection LBAs?

    Property Debt Collection LBAs, or Letters Before Action, are formal written notices sent to individuals or businesses that owe money on a property-related debt. These letters serve as a final warning before legal proceedings are initiated to recover the debt.

    Here’s a breakdown of their key components and purposes:

    1. Purpose of Sending an LBA:

    The main purpose of sending an LBA is to inform you of the outstanding debt and the creditor’s intention to take legal action if the debt is not paid. Then, to provide you with an opportunity to settle the debt or negotiate a payment plan before legal action is pursued.

    2. General Components Included in LBA:
    1. Details of the Debt: Clear information about the amount owed, including any interest or additional charges.
    2. Deadline: A specific time frame within which you must respond or pay the debt to avoid legal action. This is typically 14 to 30 days.
    3. Legal Implications: Explanation of the potential legal consequences if the debt remains unpaid, such as court action and additional costs.
    4. Payment Instructions: Information on how you can pay the debt, including payment methods and contact details for further assistance.
    5. Proof of Debt: Sometimes includes copies of invoices, contracts, or any relevant documents proving the debt.
    3. Purpose and Impact:
    • Encouraging Settlement: The primary aim is to encourage you to settle the debt without the need for court action. This can save both parties time and money.
    • Legal Compliance: Sending an LBA is often a legal requirement before initiating court proceedings for debt recovery. If the matter proceeds to court, the LBA serves as evidence that the creditor attempted to resolve the issue amicably. It demonstrates that the creditor followed the proper legal procedures and has made a reasonable effort to resolve the matter outside of court.
    • Incentive to Pay: The threat of legal action often motivates you to settle your debts to avoid additional costs and legal complications.
    4. Consequences of Ignoring an LBA:

    If you ignore the LBA or fail to pay within the specified period, the creditor can proceed with legal action. This may result in a County Court Judgment (CCJ), filing an Attachment Of Earnings order or a lawsuit against you, which can have serious implications for your credit rating and ability to obtain credit in the future.

    Additionally, keep in mind that Court proceedings can lead to additional costs for you, including court fees, legal costs, and interest on the outstanding debt. Thus, you need to take action faster in order to avoid these consequences.

    What to Do If Property Debt Collection Agency Contacts You?

    Should You Just Pay a Property Debt Collection Agency’s Debt? The first thing you should do is to verify whether you really owe them.

    For that,

    1. Gather all your credit history documents at home and try to find a reference to the debt. You should take action if you really owe them.
    2. If you really owe them, check whether your debt can be sorted under the Statute-Barred debt category. We have answered what statute-barred debts are in a separate section below. So keep reading.
    3. If the debts are not sorted under the statute-barred debt category, then you need to ask the Property Debt Collection Agency to verify your debt.

    We strongly suggest you ask the Property Debt Collection (PDC) Agency to provide you with the written documents in order to prove you really owe them. For that, you can write a request letter titled ‘Prove the Debt,’ asking to send you written provable documents that show you really owe them.

    They are bound by law to reply to you with proof. Additionally, make sure to keep a copy of the request letter and send it via a trackable mail service. This documentation will come in handy if the Property Debt Collection agency’s agents go to court without replying to you with proof.

    Their reply should at least include a copy of the initial credit agreement you had with the original creditor. You are not required by law to settle the debt until they prove you really owe them.

    What are statute-barred debts?

    Property Debt Collection (PDC) Agency may pursue old debts, and it’s essential to be aware of the UK’s Statute-Barred debts. There are 3 main conditions you need to fulfil simultaneously in order to get a Statute-Barred excuse from the court.

    This includes:

    1. Your debts must be older than 6 years from the date you made the last payment towards it.
    2. You should not have any communication with your creditor within that six-year period mentioned in the first point.
    3. You should not have received a court order like County Court Judgement(CCJ) against your debt within that six-year period mentioned in the first point.

    Your debt becomes statute-barred if the above three conditions are fulfilled at the same time. As a result, your debt becomes legally unenforceable. However, note that the debt technically still exists. It just simply means that if you ignore paying the debt, they will not be able to go to court against you for it.

    But just because your debts become legally unenforceable by the court does not mean your credit history will clear your debt as well. Instead, receiving a Statute-Barred excuse for your debt will negatively affect your credit history. As a result, you may face difficulties in getting new loans and credit cards in the future.

    However, not all debts become statute-barred. HMRC debts and debts with a County Court Judgment (CCJ) remain enforceable for extended periods.

    It’s better to seek debt advice from a debt advisor if you’re unsure about your debt’s status. These advisors can assess your debt, determine its status, and guide you on the appropriate actions to take.

    What if Property Debt Collection Agency proves you really owe them?

    The easiest way to solve this debt issue with Property Debt Collection Agency is to settle the debt in one go and get done with it.

    Or, you can get in touch with them via phone call and request a payment plan if you are facing difficulties financially. Keep in mind to ask them about a payment plan in a way they get convinced enough to approve one for you. They will surely approve a payment plan if you can convince them with proof of your income and expenditure.

    Need More Help to Deal with Your Unaffordable Property Debt?

    If you’re unsure how to deal with your unaffordable Property Debts, feel free to fill out our online form, and our Advice Team will get back to you to guide you.

    Typical Debt Collection Process of Property Debt Collection (PDC)

    If you do not acknowledge the debt being pursued by Property Debt Collection Agency, the company will initiate a sequence of series of general actions, as detailed below:

    1. The Property Debt Collection Agency will initially send you a notification letter letting you know about the debt transition from your original creditor and what to do next. Mainly asking to settle the debt.
    2. From there onwards, you will receive repeated phone calls, emails, and letters demanding payment and warning you of further actions.
    3. The company will place phone calls to any contact numbers they believe you may be reachable on. These calls may often occur outside of regular business hours in an attempt to reach you at home.
    4. In some instances, a collection agent may pay a visit to your residence during evenings or weekends, aiming to contact you at home if you ignore their phone calls and letters.
    5. If you ignore their reachouts, gradually a default notice may be issued against you. Plus, it will be recorded on your credit history.

    Can Property Debt Collection Agency Take Me to Court?

    Yes, ignoring Property Debt Collection agents’ calls and messages, including the default notice, increases the likelihood that they will take legal action against you. The decision to do so often hinges on the debt’s size.

    For instance, a parking fine might not be their top priority for legal action, although it remains a possibility, and the chances rise as your total debt amount increases.

    Property Debt Collection (PDC) Agency will start taking the following steps generally if you ignore all their ways of reaching.

    1. They will send you one last letter titled ‘Letter Before Action (LBA)’ if you ignore their default notice. Through that letter, they will inform you that they will take your debt issue to court to find a solution if not settled before the due date mentioned in the letter.
    2. Surely, they will go to court to file for a County Court Judgment (CCJ) against you if you ignore their LBA.
    • A County Court Judgment (CCJ) makes you legally responsible for the debt if it is proven you really owe them in court.
    • You can remove this CCJ if you settle the debt within 30 days of receiving this court order.
    • Or else, the status of your CCJ will be updated to ‘satisfied’ and will last for six years on your credit history report if you take more than 30 days to settle the debt.
    • Once a CCJ negatively impacts your credit report, you might find it difficult to get new loans and credit cards in the future.
    What will happen if you ignore a CCJ?

    If you ignore the CCJ, Property Debt Collection Agency’s agents will once again go to court to take a Warrant or Writ of Conduct to use bailiffs to visit your home and seize your belongings.

    1. Then, the bailiffs will send you an Enforcement Notice 7 days prior to visiting your home and seize your belongings if you do not settle the debt.
    2. The bailiff agents will visit your home and seize your belongings if you ignore the Enforcement Notice.
    3. Those seized items will be sold in an auction to cover the total debt and all bailiffs’ charges.

    Sometimes, they may even take a statutory demand as well. It serves as the initial step in potentially declaring you bankrupt. Keep in mind this option is only applicable to debts exceeding £5000.

    We strongly suggest that you don’t wait till things escalate to this extent. Plus, there is plenty of time in between these procedures. So you can use that time to find a better solution. At least try to get debt advice from a professional debt advisor if you feel like you cannot handle it alone.

    Keep reading. We have mentioned some of the ways you can get help in solving this debt issue in the later part of this article.

    Can I Stop Debt Letters From Property Debt Collection (PDC)?

    You control the narrative of how you wish to be communicated with. By expressing your communication preferences to Property Debt Collection (PDC), be it via phone, letter, or email, you can align correspondence to your comfort level.

    To minimise their constant reachouts, the best way to be in contact with them is through letters. You just have to request a letter stating that you prefer to communicate with them only using letters. They are bound by law to honour your request and stop all other ways of ongoing reach-out practices.

    They may monitor their calls and messages to identify when you’re most likely to respond. Informing them of a convenient time for you will not only ease their workload but also empower you with more control over the situation.

    How to Make a Complaint about Property Debt Collection (PDC)?

    Since Property Debt Collection (PDC) is authorised and regulated by the Financial Conduct Authority (FCA), they need to follow strict FCA guidelines placed on them when conducting debt recovery practices.

    Below are some of the rights you have while engaging with debt collectors like Property Debt Collection Agency’s agents.

    1. The option to request Property Debt Collection (PDC) to limit their communication with you, excluding vital notifications.
    2. The ability to demand evidence of the alleged debt.
    3. The right to fair and respectful treatment, with protection from harassment or threats.
    4. Be prepared to engage in negotiations and reach an agreement on a feasible repayment plan with them.
    5. The right to insist on clear and accurate details about the debt, such as the owed amount, the original creditor, and available repayment choices.
    You can make a complaint about them if you feel like they have conducted an unethical practice while dealing with you.

    For that:

    1. At first, it is better to file a complaint to the Property Debt Collection (PDC) Agency’s headquarters about the bad experience. It will give them a chance to solve the issue internally.
    2. As your secondary option, you can file a complaint to the Financial Ombudsman Service(FOS) if you are not satisfied with the Property Debt Collection Agency’s response to your complaint. Make sure to give them provable proof when submitting a complaint in order to make a strong case. Otherwise, the process will take time.

    Debt Collection (PDC) Agency will end up paying a huge fine or compensation to you if they are proven guilty of their conduct by the legal officers.

    If you find hardship in dealing with the Property Debt Collection Agency, then you can use trusted debt advisory charities like Citizens Advice, National Debtline, and StepChange to take free debt advice to deal with your debt issue.

    They will help you leverage their expertise to understand your rights and navigate through the complaint procedure with the Property Debt Collection Agency.

    What Should I Do If My Debts Are Huge And I Cannot Afford To Settle Them?

    Sometimes, you may face difficulties in agreeing to the proposed payment plans from your creditor or the Property Debt Collection agents, especially if they are financially burdensome.

    In such situations, it is advisable to explore alternative debt solutions that can effectively address your debt-related concerns. In the UK, there are various alternative debt solutions to consider.

    However, it’s crucial to keep in mind that each of these debt solutions has specific eligibility criteria. Selecting the right one can lead to debt resolution, while choosing the wrong one could worsen your financial circumstances.

    Hence, seeking guidance from a professional debt advisor is a prudent step to take if you find it challenging to determine the most suitable debt solution on your own.

    Here are some key debt solutions available in the UK:
    1. Debt Management Plan (DMP): An informal arrangement allowing you to make monthly payments toward your debts without a binding commitment.
    2. Individual Voluntary Arrangement (IVA): A formal agreement with creditors where regular payments are made, and the remaining debt is typically written off after 5 or 6 years.
    3. Debt Relief Order (DRO): Suited for individuals facing financial hardship, it includes a year of no payments while freezing interest, potentially leading to debt write-off.
    4. Bankruptcy: An option to consider when you have no feasible means to repay your debts. It offers a fresh start but comes with significant implications.
    Alternatively,

    If you need personalised assistance based on your current financial situation, please feel free to complete our online form by clicking here to receive help from our Advice Team.

    Seek Free Financial Advice

    There are a number of debt charity organisations that you could use to get professional debt and financial advice free of charge. Their advisors will inquire deeply about your debt issue and will help you in finding a reliable solution to overcome it.

    Below is a list of charity debt organisations where you could get free debt help:

    1. StepChange
    2. National Debtline
    3. Citizens Advice
    4. Debt Advice Foundation

    Property Debt Collection Ltd Contact Information

    Website: https://www.propertydebt.co.uk/
    Phone: 01992 449 403
    Mon – Fri 9am–5pm
    Fax: 01992 449 404
    Email: info@propertydebt.co.uk
    Post: Property Debt Collection Ltd
    Sherwood House, 5 Bluecoats Avenue, Hertford, Hertfordshire, SG14 1PB

    Key Points

    • Property Debt Collection LBAs (Letters Before Action) are formal notices sent to individuals or businesses owing property-related debts, serving as a final warning before legal proceedings.
    • LBAs inform you of the outstanding debt and the creditor’s intention to take legal action if not paid. They provide an opportunity to settle the debt or negotiate a payment plan before legal action.
    • An LBA includes details of the debt, a payment deadline (usually 14 to 30 days), legal implications of non-payment, payment instructions, and proof of debt.
    • Ignoring an LBA can lead to legal action, resulting in a County Court Judgment (CCJ), additional costs, and severe implications for your credit rating and ability to obtain future credit.
    • Before paying a debt to a Property Debt Collection Agency, verify its legitimacy by checking your credit history and requesting proof of the debt through a ‘Prove the Debt’ letter.
    • Debts older than six years with no payment, communication, or court judgment within that period may be statute-barred, making them legally unenforceable but still impacting credit history.
    • If the debt is verified, consider settling it in one payment or negotiating a payment plan. Ensure you receive a receipt for any payment plan arranged.
    • The process includes notification letters, repeated calls and emails, potential home visits by agents, issuance of a default notice, and possible court action leading to a CCJ.
    • If taken to court and issued a CCJ, you must settle the debt within 30 days to avoid long-term credit impact. Ignoring a CCJ can lead to enforcement actions, including bailiff visits and asset seizure.
    • If facing unethical practices or harassment, file a complaint with the Property Debt Collection Agency or the Financial Ombudsman Service (FOS). For assistance, consult debt advisory charities like Citizens Advice, National Debtline, and StepChange for free debt advice and support.

    FAQs

    1. What Should I Do If I Can’t Afford to Pay Property Debt Collection Immediately?

    If you can’t afford to pay Property Debt Collection immediately, consider discussing a repayment plan with them. You can also explore various debt solutions such as Debt Management Plans (DMPs), Individual Voluntary Arrangements (IVAs), or even bankruptcy in extreme cases. These options can help you manage your debt more effectively. Consulting with a debt advisor can provide you with tailored advice based on your financial situation.

    2. How Can I Stop Harassing Calls From Property Debt Collection?

    If you are receiving frequent and distressing calls from Property Debt Collection, you have the right to manage how and when they contact you. Inform them of your preferred contact times and methods. If they continue to ignore your preferences, you can file a harassment complaint with the Financial Ombudsman. Keep a log of all calls and your requests to support your case.

    3. What Happens If I Ignore a Letter from Property Debt Collection?

    Ignoring a letter from Property Debt Collection is not advisable. If you do not respond, they may escalate the situation to court, leading to a County Court Judgment (CCJ) or other legal actions. It’s better to communicate, even if it’s just to request proof of the debt or to negotiate a payment plan.

    4. Can Property Debt Collection Repossess My Home?

    Property Debt Collection cannot repossess your home without following a legal process. They must obtain a court order before taking such action. Repossession is typically a last resort and is usually only considered for significant debts. Exploring all other debt solutions can help you avoid this severe outcome.

    5. How Do I Know If My Debt Is Statute-Barred?

    To determine if your debt is statute-barred, check the last date of payment or written acknowledgement of the debt. If it has been over six years (five years in Scotland) without any payments or acknowledgements, the debt may be statute-barred and unenforceable. Consult with a debt advisor or legal expert to confirm your debt’s status.

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