Capital Resolve Debt Recovery – Should You Pay?

Has a letter from Capital Resolve Debt Recovery landed on your doorstep? Are you asking if you should pay or if it’s even real?

You’re not alone. Over 170,000 people visit our site each month for help with debt problems. We understand how stressful the situation can be, as nearly half of the individuals who deal with debt collection agencies have experienced harassment or aggression¹.

In this easy-to-follow guide, we’ll explain:

•  Who Capital Resolve is and if they are real.
•  How to find out if you really owe them any money.
•  Ways to deal with this debt, even if you can’t afford to pay. 
•  The things Capital Resolve can and can’t do.
•  How to get professional help with managing your debts.

Some of us have been in your shoes -we’ve had debt letters and phone calls too. But, with the right knowledge, you can sort this out.

Let’s get started!

Check if you owe Capital Resolve any money

Do you actually owe them money? Is it scare tactics, and you have actually paid the bill to the original client, or are they in the right, and you do have money that you owe?

It’s vital that you do not just take their word at face value. You need to ensure that you owe what they say you do otherwise you could end up paying for something more than once or even paying outstanding debts that aren’t yours!

You have every right to request proof that you are liable for the debt. You can use my free ‘prove the debt’ letter template to write to Capital Resolve and tell ask for evidence.

You are under no obligation to make a payment until they can prove you owe the debt.

Sometimes you need to do this as Capital Recovery won’t give you any information!

Writing to Capital and asking for evidence might be a good idea in this instance – you don’t have to give them your address; just ask that they prove you owe the debt!

It’s key to ask for proof, as the average unsecured debt amount has increased by 27% year-on-year (to ¬£16,174)², and in several instances, due to unclarified amounts and wrongful debt collections.

If you can afford to pay the debt

If you can afford to pay the debt it’s best to commit to payment. The earlier that you can pay your Capital Resolve debt, the earlier their contact with you will come to an end. This will result in peace of mind as well as being able to move on from the incident.

However, if you cannot afford to pay the debt there are options open to you such as:

Agreeing to a repayment plan

It is in Capital Resolve’s best interest to receive the payment from you, whether that is all at once or in stages, so it’s possible to agree on a repayment plan with them.

Try to make the money you owe Capital Resolve a reasonable repayment amount wherever possible. However, it’s important to remember that it must be tailored to your budget, and you shouldn’t let them pressure you into a monthly figure that you can’t afford.

Usually, when setting up a payment plan with a debt collector, they will go through what’s called a financial statement. You will discuss your income and expenses each month with a Capital Resolve representative, and they will work out how much money you can afford to pay off your debts. They cannot force you to pay more than you can afford. 

However, if they are being pushy it’s best to get some free debt advice before agreeing on a payment plan.

Janine, our financial expert, explained that while debt collectors can visit your home for payments, they cannot come to your workplace, act threateningly, force payment, or discuss your finances with others. If they violate these rules, you can complain.

What Capital Resolve Can Do

Now I have covered what Capital Resolve aren’t allowed to do and hopefully put your mind at ease, it’s important to know what they are allowed to do.

Some tactics they may employ are:

• Sending doorstep collectors, this involves them coming round to your house in an attempt to get you to pay at the door, it’s important to note that they aren’t bailiffs and they aren’t allowed to come in and seize your assets.
• They can add interest and charges as long as they are reasonable, the charges they add often aren’t reasonable and you can negotiate with them to get them to lower their charges.
• Take money from connected accounts, for example, if you owe money on a credit card and have a current account with the same bank they are allowed to take payment if they warn you in advance, this is known as the bank’s right to offset.
• They can apply for a County Court Judgment (CCJ) against you impacting your credit score and making it hard for you to access credit sources in the future

Depending on who Capital Resolve sends to your home, the situation may vary. Bailiffs and debt collectors are two very different things, and each has rights the other one doesn’t. To ensure you’re not being taken advantage of, please check out the table below, which summarizes what debt collectors and bailiffs can and can’t do.

What Capital Resolve Can’t Do

If the debt is valid then it’s important you know what powers Capital Resolve have and the ways that they can make you pay your debt.

It’s important to note that as a debt collector, Capital Resolve only has similar amounts of power to the company that you owed the debt in the first place. Often companies in this industry will resort to underhand and borderline illegal tactics to make you feel stressed and under pressure and like you must pay them.

Some of the tactics Capital Resolve aren’t allowed to use are:

• Calling at unreasonable times, such as the middle of the night or first thing in the morning
• Discussing your debt with a family member, a housemate or somebody that you have not given express permission to talk to
• Adding unreasonable additional charges such as additional collection fees, something that companies like this are only too used to doing to boost their revenue
• Using jargon, such as legal or technical language to frighten you into paying the debt
• Sending letters that have a similar appearance to court forms
• Pressuring you to take on additional debt to pay off the debt that they are chasing for, this is known as financial harassment
• Enter your home without permission and remove your goods. If you ask them to leave they must oblige.

If they try any of these tactics in an attempt to get you to pay it’s best to get in contact with either a debt advice company that is used to dealing with companies such as this one. Alternatively, contact the Citizens Advice Bureau if you feel they have really overstepped the mark and you have nowhere to turn.

The Citizens Advice Bureau can be reached on 0300 330 1313 between 9 AM and 8 PM and have advisors that are trained to provide you with the most relevant information and advice to help you feel less stressed and pressured.

Can I Get a Debt Solution?

If you can’t afford to pay for a Capital Resolve repayment plan, you might need to consider a debt solution.

There are several different debt solutions available in the UK, so I recommend speaking to a debt charity as soon as possible. Their financial advisors will be able to walk you through your options and help you make sure that you are opting for the best option for you:

• StepChange
• National Debtline
• Citizens Advice
• Debt Advice Foundation.

Debt Management Plan (DMP)

A DMP is an informal debt solution that lets you pay off your debts via a single monthly payment.

Because it is informal, it is not legally binding so you are not tied into a DMP for a minimum number of payments.

Individual Voluntary Arrangement (IVA)

An IVA is a formal agreement between you and your creditors. You agree to pay a monthly sum that is distributed amongst your debts, and your creditors agree not to contact you during your IVA.

IVAs typically last for 5 or 6 years, and any outstanding debt is wiped off when it ends.

Keep in mind that IVAs are not suitable for everyone. You need to owe several thousand pounds to more than one creditor to be eligible. You also need to demonstrate that you have some disposable income every month.

Trust Deed

IVAs are not available in Scotland. Instead, you will need to opt for a Trust Deed.

Trust Deeds work in the same way as an IVA ‚Äì you pay an agreed sum each month that is shared amongst your creditors, they can’t contact you, and any leftover debt at the end of your Trust Deed term is written off.

Debt Relief Order (DRO)

A DRO is a good option for those facing financial hardship with no assets and little income.

For 12 months, you make no payments, but your creditors freeze your interest and don’t contact you.

If your finances haven’t improved during this year, you may be able to write off your unsecured debts.

Bankruptcy

If you have debts but no realistic possibility of ever paying them off, you may need to declare bankruptcy.

Bankruptcy has an unfair stigma attached to it as it may be your only way of getting a financial fresh start. That said, it is a serious financial situation that should not be taken lightly.

Sequestration

Sequestration is the Scottish version of bankruptcy.If you have little income and no valuable assets, you may be able to apply for a minimal asset process bankruptcy (MAP). A MAP is a quicker, cheaper, and more straightforward version of sequestration, so worth considering.

Making A Complaint

Finally, if you feel that Capital Resolve has treated you badly and you would like to make a complaint against them there are several routes open to you.

You need to make your first complaint directly to Capital Resolve so that they have the opportunity to sort out your issues themselves. If you feel that their response has been inadequate or inappropriate, you can escalate matters.

The Financial Ombudsman

The Financial Ombudsman Service is set up to protect the interest of individuals when it comes to dealing with organizations such as banks or debt collection agencies, they can be contacted on:

Email: [email protected]

Phone: 0800 023 4567

Credit Services Agency

All debt collection agencies must be legally registered with the Credit Services Association in order to operate, if you feel that you have been harassed by Capital Resolve then fill out the agencies complaint form here:

https://cdn.ymaws.com/csa-uk.site-ym.com/resource/resmgr/complaints/csa_complaint_form.pdf

Once they receive your form they:

• Review and register the complaint.
• Send a copy to Capital Resolve
• Send you confirmation of the complaint

The member then has eight weeks to directly contact you in an attempt to resolve the situation, this also gets sent to the agency and they review it to make sure it’s sufficient.

The agency will then write to you and let you know the outcome of their review and whether your complaint against Capital Resolve has been, in their eyes, adequately resolved.

Numbers they may call you from

Capital Resolve may call you from any of the numbers below, it’s better to have an idea of who it might be when you answer the phone so that they do not catch you off guard and you can prepare what you would like to say them:

Phone numbers they may call you from:	0138 642 5425 0138 642 5400 0138 642 5406
Address:	Capital Resolve Ltd Fountain Court, Vale Park, Evesham Worcs WR11 1LS
Telephone:	01386 421995
Email:	[email protected]

It’s also best if you do not take these calls late at night or early in the morning, they shouldn’t be calling you at these times anyway due to it being harassment however it does not tend to stop them from calling you when you may not be as alert as you want to be or to put fear and doubt into your mind so that you think about it all night instead of sleeping.

Capital Resolve Contact Details

Address:	Capital Resolve Ltd Fountain Court, Crab Apple Way, Vale Park, Evesham, Worcestershire, WR11 1LS
Phone:	01386 719130 Monday to Friday: 8am to 6pm Saturday & Sunday: Closed
Automated Payment Line:	03332 021 236
Email:	[email protected] Enquiries [email protected] Complaints [email protected] Disputes
Website:	https://www.cr-portal.com/

References

1. InDebted, Debt Collectors Survey
2. StepChange, Scotland in the Red