Insolvency service advises on use of Private Debt Collection Agencies

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insolvency service advises on its use of private debt collection agencies

The Insolvency has issued a statement on its use of Private Debt Collection Agencies this week.

The notice advises that the Insolvency Service may used private debt collectors to recover income payment arrangements from bankrupt individuals. It also refers to collecting payments from companies that are in liquidation.

It is assumed the public notice has been issued for the avoidance of doubt for any private individuals. It also helps avoid scammers portraying themselves as acting on behalf of the Insolvency service in debt collections matters.

Full statement:

“The official receiver may use private debt collection agencies to collect:

  • Income Payments Agreements (paid by people who have been made bankrupt)
  • money owed relating to bankruptcies and companies in liquidation

If you do not make your payments under an income payments agreement, the debt collection agency or official receiver might contact your employer to take the money directly from your wages.

The debt collection agency will write to you and you should pay them directly.

Debt collection agencies used by the official receiver are:

  • Advantis Credit Ltd who can be contacted on 01782 971 404 or admin@advantiscredit.co.uk
  • Clarke Willmott LLP

Payments to creditors

If you have been made bankrupt, usually you should not make payments to anyone you owed money to at the date of your bankruptcy, either directly or to debt collection agencies. There are some exceptions.”

Debt Collection scams on the rise

Debt Collection scammers have been on the increase over the past few years. Scam Personal Debt Collectors purporting to be from legitimate UK Debt Collection Agencies have been caught out red handed, often operating from Indian call centres.

A number of debt collection agencies have already reported that they have been ‘impersonated’ by scammers with foreign accents. They threaten private individuals with Bailiffs if monies are not paid immediately.

To see the statement issued by the Insolvency Service regarding Private debt collection agencies in its entirety, please visit the official government website.

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