A Creditor must send you a final demand, giving you time to comply before starting legal action.

Final Demand

A final demand is usually in the form of a letter and sent by a Creditor to a consumer stating that further action will be taken if the terms of the demand are not met.

Typically a 7 day time limit is given. The nature of the demand depends upon the type of debt; but it will usually state that the account must be brought up to date or legal proceedings are to commence. Often a final demand is letter-headed and signed from the creditor's solicitor, just so it looks more serious. Final demands should not be ignored and the creditor should be contacted immediately to avoid court action. If there are legal proceedings you may also be liable for additional legal costs.

Help ! I received a final demand

Firstly, make sure the amounts they are claiming and all details are correct. If you dispute this, inform the creditor. You should ask them not to take any further action until this is resolved. If the demand is correct you should contact the creditor immediately and explain why you have not made the outstanding payments. They will usually be sympathetic if you offer pay by installments over a period of time. It may be that you can only make token payments now, with the promise of higher payments later, which is preferable to no offer of payment. Try and reach a sensible agreement with them that you can afford to keep.

How Harrington Brooks Can help

Many of our clients originally came to us when they were concerned about receiving a final demand they were unable to comply with. Your creditors need to understand you are simply not a "won't pay" and that you have other financial commitments. They need to understand you are making reasonable attempts to repay your debts as best you can. If you can't afford your debts as they fall due, then you need to take action to reduce your monthly (or weekly) liability, this can be done by a debt management plan or an IVA. We'd review your financial affairs, and produce a common financial statement.

This details your income and expenditure, keeping to guidelines your creditors will accept to be a fair assessment of your ability to repay this debt and any other debts. If it appears you are struggling and you can afford at least £80 month towards your debts you'll qualify for a debt management plan. If you owe at least £10,000 and can afford £150 per month, you may qualify for an IVA.

If you choose to enter into a debt management plan or IVA with us, we'd contact all your creditors explaining Harrington Brooks are now representing you and instruct them to direct all correspondence to us. You'd make one affordable monthly payment to us, which we distribute to your creditors, pro-rata based on the amount owed to each. We'd request interest and charges to be frozen on your debts and have a good record in achieving this.