The Ultimate Guide to Shoosmith Debt Collectors

Like the majority of debt collectors, Shoosmiths are famed for issuing debt collection ultimatums. If you’re unable to pay them or don’t think what they’re asking for is fair, you’ve come to the right place!

Although ultimatums can feel overwhelming, what most don’t know is, that with the right solution, many debts can be written off by up to 85 per cent!

Read our handy guide to learn more about Shoosmiths, and to see if you’re eligible for the new government scheme.

Did You Know You Can Write Off Up To 85% Of Your Debts?

Do I Qualify?

Where are Shoosmiths based?

Shoosmiths LLP are based in the UK, and have offices located throughout the country. They work with businesses and other organisations on debt recovery projects including council tax, court fees, business debts, credit agreements and more.

Are they a legitimate debt recovery company authorised and regulated in the UK?

Shoosmiths LLP is an authorised debt recovery specialist, providing international arbitration, litigation, dispute resolution and legal services to clients across England and Northern Ireland.

They are regulated and authorised by the Financial Conduct Authority.

What legal powers do they have over me?

Although legally bound to work lawfully, this isn’t the case with all debt collection agencies. Some companies employ extreme bullying tactics, including hounding you with pressure, constant letters and phone calls – all demanding that you pay them immediately.

It’s important to understand that debt collection agencies like Shoosmiths LLP, do need to abide by certain rules and regulations. These are outlined by the Office for Fair Trading and stipulate that:

  • All debtors should be treated fairly. Practices should be honest and the debt collection should be handled appropriately. Behaviours deemed aggressive, cruel, coercive, deceitful or improper are not acceptable.
  • Information on the debt and terms and conditions should be clear and concise and outlined from the start. Misleading information is not satisfactory.
  • Both the debtor’s current situation and past circumstances should be considered, factoring in any existing finance or business difficulties.

If you are currently in contact with Shoosmiths Debt Collection company and don’t believe they are abiding by the above guidelines, contact one of our team for further advice today.

Alternatively, you can make a complaint with the Office for Fair Trading. If the complaint is deemed legit, they will take steps to remove the debt collection company’s license.

Why is a third party debt collection agency contacting me?

Although several sectors are struggling at this time, the debt collection business isn’t one of them. Some would go as far as to say it’s booming and, in a nutshell, this is one of the reasons a third party debt collection agency or debt purchaser is contacting you today.

Debt collectors, including Shoosmiths LLP, buy debt from lenders such as banks, government bodies, corporates and more, often for as little as 20% of the original debt value. Despite this, they still go after the full amount, ensuring they always make a massive profit.

If Shoosmiths Debt Collection has sent you a debt letter, or worse still, turned up on your doorstep, it is likely they have purchased an existing debt from a lender you owe money to. Before responding to them, you must speak to a financial adviser, as in certain cases you may be able to write off up to 80% of the sum owed!

How do I get in contact?

If you have received correspondence from Shoosmiths, likely in the form of a letter demanding the debt is paid immediately, this letter will feature contact details, including a phone number or an email address.

However, before contacting them, it’s important to seek advice on the matter. Knowing where you stand will help you to understand what you owe, what rights you have and what action Shoosmiths are legally able to take.

In this scenario, knowledge is power and the more you have, the easier it will be to defend yourself against Debt Collection Companies such as Shoosmiths.

How do debt collection agencies operate?

As we mentioned earlier, they buy debts from other people at a fraction of the price. This debt then becomes theirs and they will pursue you directly to try and get the money back. There are a few things you should know about how they operate, these include:

They’re on commission

The majority of debt collections companies, including Shoosmiths, work on a bonus. This is on top of their monthly wage, which is almost always minimum wage, especially for junior members of the team.

With this in mind, it’s important to know that the people who contact you will be doing everything they can to make you pay the debt as it means more money for them. The more collections they make in a month, the more they earn.

They often make automated calls

A large number of people who receive calls from debt collection companies choose to ignore them. Although this may seem like an easy route, it’s not the wisest option and it certainly won’t make the debt go away.

Because this happens regularly, debt collectors like Shoosmiths use technology that issues automated calls. This is a scaremongering tactic, and if you do answer, you’ll likely discover there is no one on the other end of the line.

If this is happening a lot, jot down the number of calls you are receiving per week. Too many calls can be seen as an Office of Fair Trading regulations violation.

They adopt good cop, bad cop tactics

A common method adopted by debt collection agencies is ‘good cop, bad cop’. It’s also a tactic many debtors seem to fall for. How does it work? The first person you speak to from the agency will offer no sympathy in the slightest, they will often be extremely rude and very demanding.

This triggers you to make a complaint or speak to a senior. This individual will be nothing but polite, understanding and extremely sympathetic to the situation. This method is used to wear the debtor down, which often results in payment. In some cases, it could be more than you owe!

They may discuss your financial situation with others

This is an extremely illegal tactic and one that should be reported immediately. They may talk to a family member, an employer, employee, or a friend who answers the phone on your behalf. As well as violating regulations set out by the Office of Fair trading, this is a breach of your privacy.

They may act deceitfully and lie about the debt or the consequences

A huge number of debt collection agencies think they have the same power (if not more) than the law. Instead of sticking to the regulations they need to abide by, they’ll often resort to deceitful tactics. Examples of this include calling you and pretending to be someone else, like a bailiff or a court.

Alternatively, they may threaten you with a criminal prosecution or remove personal belongings from your home. As soon as you begin to feel threatened, you have the right to contact the police or the Office of Fair Trading and report their behaviour.

Why is a debt collection agency contacting you?

As we’ve discussed, the debt collection sector is on an all-time high. Debt recovery collectors, including Shoosmiths, buy debt from lenders at a considerably lower value than what it is worth, often for around 20% of the original debt value.

It is then their responsibility to recover this debt and any money they do recover, they get to keep. They’ll often add on extra fees and interest to ensure they make a profit on the debt recovery.

If Shoosmiths or any other debt collection business is contacting you, it is because they have purchased an existing debt of yours from another lender.

What if I cant afford to pay back a debt?

If you’re unable to repay debt collections you owe, or you’re confused about the impacts future payments will have on your credit history, reach out to us for advice.

You may also wish to contact Shoosmiths directly and request a lower repayment plan, and one that is manageable.

Other factors to consider include Individual Voluntary Agreements (IVAs). Such an agreement makes it possible to write off existing debt. This comes in the shape of a formal consensus, agreed by both parties and will usually result in the debtor paying the agency a monthly amount they’re able to afford over a fixed period.

There are also several governments schemes to look into, if entitled to these, you may lower your repayments by a massive 85%. Handy online tools, including debt calculators, will help you evaluate what you owe. For more information, speak to a financial adviser.

Can pay, but won’t pay?

If the debt is legit, you won’t do yourself any favours by running away from it. The easiest way to get debt collections companies off your back is by paying them what you owe.

But before you do this, it’s important to determine the amount issued is the correct amount. You could be entitled to several deductions and only a debt solution company will inform you of these.

How to deal with debt collectors

If you’ve received a letter that informs you of a debt, it’s important to act quickly and seek advice. Knowledge is power and the more you know about the debt collection company, the more prepared you will be to fight any false claims, pay only what you owe and understand the rights you have.

Seek debt help

Seeking help is key when it comes to understanding what a debt with a third-party provider entails. From unwarranted additional charges, to high-interest rates, and knowing whether you qualify for a government scheme or IVA, the only way to understand a debt completely is to seek debt help.

Getting in touch with us will certainly make the debt a lot less scary, it will also help you to ensure you put a repayment plan in place that you can afford and one that is fully above board. This is of course if the debt is legit. If not, we’ll help you to dissolve it.

Check if you really owe a debt collection company money

If you have been contacted by Shoosmiths Debt Collection company, the first and foremost thing you should do is understand the debt. This includes learning more about where it is from, the exact amount owed and whether there have been additional charges added to it.

This is often the case when a third-party debt collector such as Shoosmiths takes over. They will sometimes add numerous fees, as well as interest, to the original debt to ensure they make a profit, despite having purchased it for 20% of its value.

Once you are aware of all of the ins and outs, your next course of action should be to write to Shoosmiths and ask them to supply you with proof of your initial credit contract.

If they refuse to provide you with these details, you are under no circumstances required to offer them any form of payment. You may even be able to claim a refund!

Before you pay, seek IVA debt advice!

Instead of agreeing to pay a debt quite simply because you’ve been scared into it, seek IVA debt advice. What is an IVA? An IVA, otherwise known as an Individual Voluntary Agreement, is an agreement made between both the third-party debt collector and the debtor.

The result is a reduced payments plan, which could result in lower monthly payments over an agreed period.

Interested In Finding Out More About The Debt Solutions Available?

Find Out More

If you don’t ask for a reduced payment plan, a debt collection company will never offer it to you. For more advice on IVA’s, please read our consumer legal newsletter or visit an online forum, such as the legalbeagles consumer legal forum, who specialise in free legal and consumer debt advice.

Use the arrow contact search icon and menu icon to search for answers to your debt recovery queries. The advice forum offers information on everything from court action and what to do if you receive a CCJ, to business debts, litigation and debt recovery services, as well as credit agreement and finance options.

The Beagles insight posts are constantly updated, providing customers who visit the site with instant access to a range of services. It is recommended you register with the forum. Once you have signed up, you will be provided with user details and a unique login.

Up to 85% of your debt could be written off!

Debt collectors will only write a debt off if they are no longer permitted (by law) to chase you for it. However, this doesn’t mean you don’t warrant for a reduced payment plan or in some cases, a massive 85% reduction off your existing debt.

FAQs:

How do I deal with Shoosmiths debt collection?

Firstly, understand who they are and how they operate. This will stand you in good stead when it comes to paying back only what you owe and no more. Secondly, never be intimidated by them. They employ people to use scaremongering tactics to get you to pay debts, that is often a lot higher to that of your initial debt.

It’s important to know what they can and can’t do, and remember, just like other registered businesses, they must abide by certain rules and regulations. If they don’t, they are breaking the law and you have every right to report them to the Financial Conduct Authority.

Knowing what to say to them on the phone, and what questions to ask, can certainly help with this. This is when getting into touch with us before speaking to a Shoosmith’s adviser is a great idea. This will help you to understand how they work and what their rights are.

For example, Shoosmiths LLP cannot present you with a warrant for your arrest (even if they have threatened this) nor can they have you carted off to prison. At the most, they can speak to a court and obtain a CCJ, and if they are granted this, only then can they order bailiffs to your house, but not before this.

You should understand that Shoosmiths LLP are not bailiffs and if they do turn up at your property, they are not legally allowed to enter unless you invite them to do so. If this happens, politely tell them to leave your property. If they refuse, you can call the police.

If you would like more advice on what Shoosmiths can and can’t do when it comes to debts, CCJ orders and other court disputes, litigation services and payments, please get in touch with our team today.

What happens if I don’t pay a debt collection agency?

If the debt is legit, it will only get worse. The debt collection agencies first port of call will be to send doorstep collectors. This can be an extremely scary ordeal, not just for the debtor, but for the entire family. If this action fails, they may request a County Court Judgement.

If this approach is successful, you will be forced to pay the debt and this will affect your credit score, which will prevent you from being able to make certain purchases or request other loans in the future.

If you do receive a CCJ (County Court Judgement) and choose to ignore this, you risk bailiffs turning up at your home and taking items that offer the same value to that of the debt.

Debts seldom go away and debt collectors will only ever write your debt off if they have been told not to contact you by law or the court claim they filed has not been successful. The general rule of thumb is that they have six years to collect the money owed.

Find Out The Best Debt Solution Bespoke To Your Financial Situation

30 Second Debt Assessment Quiz

Are Shoosmiths licensed bailiffs?

Shoosmiths are not classed as bailiffs. They can employ the services of bailiffs to collect belongings from a debtors property or business, but only if, a County Court Judgement has been granted. If this does happen, you will receive numerous letters from the court warning you of the procedures.

Can I ignore a notice from Shoosmiths?

You can, but it won’t get you anywhere. Shoosmiths will likely continue to hound you for the money owed, via a constant stream of letters and phone calls. They may even request a CCJ. Even if you believe the debt not to be legit, it’s important not to ignore it.

Instead, seek advice on how to handle the situation. The best way to resolve debts on any sort is to deal with them head-on.

How do I make a payment to Shoosmiths?

Once you have determined the debt is legit and you know that the amount you are paying is correct, you can set up an agreement with Shoosmiths and pay them directly.

This may be a one-off payment or a series of monthly instalments. Shoosmiths have a website dedicated solely to payments, which allows customers and businesses to pay online, either using a debit or credit card, or another form of finance set-up. Customers can also pay over the phone.

Can Shoosmiths take me or my business to court?

If the money owed is legitimate, Shoosmiths can request a court case to claim debts. If this is approved, you will receive a letter stating details of the court date and the reason for the case. It’s wise to try to avoid this and come to a solution with Shoosmiths directly, outside of a court of law. A debts advisor can help you with this.

Are Shoosmiths regulated by a financial body and who are they owned by?

Shoosmiths are an LLP (a limited liability partnership). The business is not owned by another organisation. They are both regulated and authorised by the Financial Conduct Authority.

List of Debt Collection Agencies UK

Here is a list of all the debt collectors in the UK.

Debt Help

Speak to the debt advisor to check what debt solutions you have to help you consolidate debts into a single affordable monthly repayment.

Quick Links

Personal Debts IVA Debt Help Debt Management Personal Guarantee Debts

Find your best debt solution

Find your best debt solution