So, you’ve just received a letter from Goodwins Credit Management Ltd, and you’re probably wondering, ‘Do I really need to pay this?’ Don’t worry, you’re not alone!
A lot of folks get a bit anxious when they see a letter from a credit management company in their mailbox. It’s completely normal to have questions and concerns. In this article, we’re going to break it all down for you, what this letter means, why you got it, and what steps you should take next. Let’s jump right into it.
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All You Need to Know About Goodwins Credit Management Ltd
Goodwins Credit Management is an actively running UK company specialising in debt collection. The company has a team of professional debt recovery specialists who help their clients solve disputes related to debts and recover outstanding debts.
Once a creditor registers for Goodwins services, the company will investigate and trace the debtor and take necessary actions on behalf of the creditor.
One of the key communications by the company is the letter before action. This letter is sent as a warning. It indicates that they’ll take legal steps if the debt isn’t settled.
Hence, if you receive a letter from Goodwins Credit Management, it’s natural for you to feel anxious. What would you do next? Keep reading to find out.
Getting A Letter From Goodwins Credit Management
Goodwins Credit Management might contact you in different ways including letters, calls, and texts. It depends on the information given to the company by your creditor.
The most important is the letter before action. This letter is sent to inform you that legal actions will be taken if you don’t settle the debt. They may also mention payment plans if you cannot pay in full.
Many people receive this letter from Goodwins or a similar debt collection agency if debts are not paid and your creditor registers with a debt collection service. Look at an example from an online forum post.
Source: Reddit
First, don’t ignore the letter. Ignoring can lead to further legal complications. Instead, read it carefully to understand what they are claiming.
Understand the details of the debt being claimed including the amount owed, the creditor’s name, and any deadlines for payment. This helps you to make an informed decision.
Check whether the debt is genuine and whether you should pay it immediately. Think about whether you can afford the payments.
If you’re overwhelmed and cannot think of any way to pay your debts off, contact us. Our team of professional debt advisors can help you to sort out your debts effectively.
Below are the steps you must follow when you get a letter from Goodwins Credit Management.
Before making any payments to Goodwins Credit Management, you have the right to ask them to prove the debt.
Why would you ask for proof?
- Verification: Ensures the debt is legitimate and legally enforceable.
- Protection: Protects you from paying an invalid or incorrect debt.
- Clarity: Provides clear evidence of what you owe and why.
Goodwins Credit Management Ltd must provide evidence, such as a signed agreement, to prove you owe the money. You’re not obliged to pay until you get the debt evidence.
Requesting proof of the debt is your right and a crucial step. This ensures that the debt is accurate and legally enforceable. It can also reveal any errors or mistakes made by Goodwins.
Furthermore, it prevents you from making any unnecessary payments which could cause you financial stress.
Tip: There are many request letter templates available online. You can use one of them to write a request letter asking for proof from Goddwins.
Did you know some debts become too old to be collected? These are called statute-barred debts. Let’s look a bit more into this.
In the UK, a debt becomes statute-barred if the creditor hasn’t contacted you about it or if you haven’t made any payments in six years. For mortgage-related debts, the period is twelve years.
You don’t have to pay statute-barred debts, but they’ll remain in your credit reference and may make it difficult for you to get credit in the future.
If your debt is statute-barred, Goodwins Credit Management Ltd cannot force you to pay it through the courts and you don’t have to pay it.
Therefore, confirm whether your debt falls into this category before taking any action. How would you confirm it?
- Review the records. Check the payment and communication history with the creditor. If it has been more than six years (or twelve years for mortgages), the debt may be statute-barred.
- Consult a debt advisor for clarity and professional guidance.
- If your debt is statute-barred understand your rights properly.
Suppose Goodwins Credit Management sends you the proof of your debt. What will be your next steps?
If Goodwins Credit Management provides valid proof of your debt, it’s crucial to consider paying it off.
Consider your financial situation and think whether you can pay off the debt at once. If you can’t contact Goodwins Credit Management and discuss the payment plans available. Don’t agree to any payment plan that you can’t afford as it can put you in a worse situation.
Below are the contact details of Goodwins Credit Management:
- Address: Suite 106-108 Navigation House, Port Of Tyne, South Shields, NE34 0AB
- Phone: 0191 4479449 (Main Reception), 0191 9080586 (Collections)
- Email: debts@goodwinscreditmanagement.com
- Website: goodwinscreditmanagement.net
There are alternative debt solutions available that might suit your needs better, especially if you have multiple debts. These solutions can help reduce your monthly payments and sometimes even forgive a portion of your debt.
Additionally, there are many debt charities in the UK to help you pay off your debts. I’ll mention some for your reference:
- StepChange Debt Charity
- Citizens Advice
- StepChange Citizens Advice National Debtline
Do’s And Don’t’s If You Receive A Letter From Goodwins
Below are some of the things that you must do and some actions you must avoid to manage the letter from Goodwins effectively.
- Communicate properly.
- Explain your financial situation honestly.
- Agree to an affordable payment plan.
- Ignore the calls and letters.
- Makeup disputes to delay the payment.
- Agree to unreasonable or unaffordable demands.
Is Goodwins Credit Management A Bailiff?
It’s crucial to know that Goodwins Credit Management Ltd is not a bailiff agency. They are a debt collection agency, meaning they do not have the same legal powers as bailiffs.
They cannot enter your property or seize your possessions without a court order. If their agents imply otherwise, report them to the Financial Ombudsman. They must follow the law and ethical guidelines strictly.
Can Goodwins take you to court? What type of legal actions can they take? Let’s explore the answers in the next section.
Legal Actions By Goodwins Credit Management
The legal actions taken by Goodwins Credit Management depend on many factors such as:
- Your creditor’s instructions.
- Debt amount: If you own high amounts of debt, you are more likely to take legal action.
- The way you handle and communicate with Goodwins: If you don’t communicate with Goodwins properly and ignore their calls and letters, they may take you to court.
While some threats might be tactics to prompt quicker payments, there’s always a risk of legal action. Therefore, it’s best to prepare by understanding your rights and obligations thoroughly.
Will Goodwins Credit Management Stop Chasing You?
Hoping that Goodwins Credit Management will give up chasing the debt isn’t realistic. Most debt collectors are persistent. Agencies like Lowell Group and Cabot Financial are known for buying statute-barred debts and continuing to chase them.
Ignoring the debt collectors can make them take legal action against you. Therefore, it’s better to address the situation proactively rather than wait it out.
If you’re unable to sort out your debts on your own, seek help from a professional. Fill out the online form and one of our experienced debt advisors will contact you.
What Should You do If you Cannot Afford to Pay?
If you are struggling to pay off your debts, you can opt for one of the below debt solutions. A debt solution plan can help you to solve your financial crisis.
Individual Voluntary Agreement (IVA): IVA is an agreement with your creditor to pay all or part of your debt. Here you make regular payments to an insolvency practitioner who will divide it among your creditors.
Debt Relief Order (DRO): DRO helps you to deal with your personal loans. If you’re approved for a DRO, you don’t have to make payments towards your loan for 12 months. After 12 months, your debt is more likely to be forgiven.
Debt Management Plan (DMP): DMP is an agreement with your creditor to pay all your debts in small amounts regularly or make repayments in a few months.
Bankruptcy: You can apply for bankruptcy if you can’t afford the debts at all or have no assets to sell. Usually, this is taken as the last step, if any other solutions don’t work.
Conclusion
Goodwins Credit Management Ltd is a UK-based debt collection agency. If you get a letter from them, read and understand it properly. Next, write a letter requesting for your debt proof. When you receive the debt proof check whether your debt is eligible for collection.
If yes, you must take action to pay off the debt. If you can’t pay at once, communicate with Goodwins and agree on a payment plan that you can afford. Never ignore notices from Goodwins and select an affordable payment plan to avoid legal action.
Furthermore, understand your rights and options to handle the case effectively. Remember, you are not alone, if required seek professional help.
Key Points
- Goodwins Credit Management Ltd is a debt collection agency that works on behalf of creditors to recover unpaid debts.
- They follow specific procedures to contact debtors, including sending a ‘Letter Before Action,’ which is a formal notice of potential legal action.
- Do not ignore letters or calls from Goodwins Credit Management Ltd. Ignoring them can escalate the situation and lead to legal complications.
- Carefully read the letter to understand the details of the debt, such as the amount owed, the creditor’s name, and any payment deadlines.
- You have the legal right to ask Goodwins Credit Management Ltd to provide proof of the debt before making any payments.
- You don’t have to pay the debt until Goodwins provide documentation, such as a signed agreement, to verify your debt’s legitimacy.
- Some debts become too old to be enforced through legal action. These are known as statute-barred debts.
- In the UK, most debts become statute-barred after six years without contact or payment, while mortgage-related debts have a twelve-year limit.
- If the debt is verified and you cannot pay in full, consider negotiating a manageable payment plan with Goodwins Credit Management Ltd.
- Goodwins Credit Management Ltd is a debt collection agency and does not have the legal powers of bailiffs. They cannot enter your property or seize possessions without a court order.
- The legal actions taken by Goodwins depend on the debt amount and your creditor’s instructions.
- Most debt collectors, including Goodwins Credit Management Ltd, are persistent and unlikely to give up chasing the debt. Hence, act proactively and address the situation.
FAQs
Receiving a letter from Goodwins Credit Management Ltd can be stressful. First, do not ignore the letter. Carefully read it to understand the details of the debt being claimed. Ensure you verify the legitimacy of the debt and consider asking them to provide proof.
You have the right to ask Goodwins Credit Management Ltd to provide proof of the debt. This proof should include documentation such as a signed agreement. Requesting this information ensures the debt is accurate and legally enforceable.
Statute-barred debts are debts that have become too old to be enforced through the courts. In the UK, most debts become statute-barred if there has been no contact or payment for six years. Mortgage-related debts have a twelve-year limit.
If Goodwins Credit Management Ltd provides valid proof of your debt, you should evaluate your financial situation before agreeing to any payment plan. Consider negotiating a manageable payment plan if you cannot afford to pay in full. Explore alternative debt solutions if necessary.
No, receiving a letter does not mean you must pay immediately. Your response should depend on whether the debt is legitimate and within the enforceable period. Assess your financial situation and verify the debt before making any payments.
No, Goodwins Credit Management Ltd is a debt collection agency and not a bailiff agency. They do not have the legal authority to enter your property or seize possessions without a court order. If they imply otherwise, report them to the Financial Ombudsman.