Frequently Asked Questions

A selection of the more frequent questions we have been asked. Please check through before contacting us with a query, as you may find the answer below:

Q: I have already entered into an agreement with the bank, to pay a small amount every month. Can I still use this system and send the letters?
A: Yes you can, as you are requesting other documents in addition to proof of contract.

Q: Will this work for my student loan?
A: Yes, but I would suggest you do not use it until you have a lot of experience in these matters as the Student Loans Company works with the HM Revenue & Customs (HMRC)  to ensure repayments are collected under the Income Contingent Repayment Loan Scheme. One way round this would be to become a Freeman-on-the-Land, where statute law including Income Tax will no longer apply to you.

Q: I have been paying debt collectors, one pound a month. Can I still use this system and send the letters?
A: Yes you can, even though they are more likely to argue with you that you now have a contract with them, you are requesting further evidence in addition to proof of contract, like proof of agency and a signed invoice.

Q: Will this affect my credit score?
A: Unfortunately, yes it will, so you must take this into account before you go ahead, because it may affect you getting credit in future, (should the banking system still be in place for that much longer...) and you may have problems getting a mortgage or mobile phone contract, however, you can challenge them and /or repair it; go to the menu on the left for 'Credit Repair'.

Q: Will this work for my car loan?
A: Generally I would say don't use this on car loans, if the car is collateral as in a Hire Purchase agreement, as some companies with try to reclaim the vehicle and you may have your car stolen from you, especially if it is left outside your home. Should you be confident in your understanding of your rights and have read up on the Screw the Bailiff site or if you simply cannot afford the repayments, then I suggest you have a go and use the template letters.

Q: Will this work for my mortgage?
A: Generally, like car loans, I would say don't use this for your mortgage. You do not want to be evicted from your home and most companies will come to some sort of agreement if you are in serious financial difficulty. However, again, if you are really confident in your understanding of your rights and simply cannot afford the repayments and cannot come to any agreement, then I suggest you have a go and use the template letters, but please understand the consequences.

Q:My creditors keep calling me at work and late into the evening - what are the laws to deal with them?
A:The Administration of Justice Act 1970 S.40 makes it a Criminal Offence for a creditor or a creditor's agent (often a debt collection agency) to make demands (for money), which are aimed at causing 'alarm, distress or humiliation, because of their frequency or publicity or manner'. Equally, a creditor will be committing an offence if they falsely imply that non-payment of the debt will lead to criminal proceedings; or the creditor pretends to be someone they are not e.g. a court official or bailiff. It is also an offence to send a person a document which looks like it has been sent from a court.

If you feel you are subject to Debt Collection Harassment then this too could be classed as a criminal offence. Harassment can be verbal or in writing and would include making repeated calls to your workplace or in anti social hours. The Protection from Harassment Act 1997 makes it a Criminal Offence for any person to pursue a course of action "which they know, or ought to know, amounts to harassment of another person".

Q: Can you explain exactly what a 'tacit agreement' is?
A: A tacit agreement, also known as an implied-in-fact contract, is a a form of implied contract, agreed by non-verbal conduct, rather than by explicit words. It is created with the letters requesting among other things, verification of the debt and the bank's/debt company's failure to comply.

Q: I've got a letter from a firm of solicitors writing on behalf of the debt collectors. What do I do?
A: I would write back explaining that you have a tacit agreement with their client and send them copies of the letters you have sent. It's just another scare tactic, so don't be intimidated.