Receiving wrongful debt claims is enough to raise anyone’s blood pressure, especially when the lender demands instant payment with high-interest charges.
This can happen for a number of reasons, including financial mistakes, identity theft and even small administrative errors. However, it is important to remember that there is usually an easy solution to the problem.
Keep reading to learn more about debt that isn’t yours and how to deal with debt collection errors.
Firstly, the main thing to know is that you do not have to pay debt that isn’t yours.
UK laws state that you are only responsible for your own debts. When a debt collector or a lender contacts you, they need to provide enough information to show that the debt is yours.
If you did not incur the debt, there is no reason to worry – you cannot be pursued for payment. Stay calm and assert your right to dispute debts that aren’t yours.
In the UK, debt is not inherited or passed down, meaning you won’t be responsible for the debts of any deceased family members.
You are only responsible for your debts or debts you share with someone else – such as joint loans or if you have provided a loan guarantee.
If you have been contacted with incorrect debt claims, you should always double-check that the debt is not yours before moving forward.
Even if you are 100% sure, you should thoroughly review the documents you received just to be sure they are incorrect. Taking the time to do this might save you stress in the long run.
Look for:
If any details are wrong or unfamiliar, you should let the collectors know as soon as possible, as the debt may be fraudulent or part of a bigger financial scam.
If you think you are a victim of debt fraud and are being chased for a debt not incurred by you, it is time to communicate this to the collector.
You should point out the mistakes, ask them to remove you from their records and request that they not contact you again. Using a polite-yet-firm tone is best.
Don’t forget to keep track of all communications in case you need them as proof or to escalate the situation in the future. This includes emails, letters and times of phone calls.
If a creditor insists you owe a debt, it is time to send a formal dispute letter requesting evidence.
As with the communications above, you should keep a copy for your records and, if post is involved, use recorded delivery for proof of receipt.
In some cases, you might notice identity theft debt.
If the debt stems from identity theft, you must report it to the police immediately. You should also notify the involved companies to clear your name and monitor your credit report regularly for further fraud.
Other signs of identity theft include:
Talking to kids and young people about money
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