Debt Respite Scheme Guidance for Creditors

(Breathing Space) 

Here is some guidance on what you need to do:

Arrow

1. Identify when a debtor is in a Breathing Space

When a debtor enters a Breathing Space, they will provide you with evidence of their status. You should stop all recovery action, including contacting the debtor for payment and adding interest or charges to the debt.

2. Continue to apply payments and interest

During the Breathing Space period, the debtor is still responsible for making payments towards the debt. You should continue to apply payments and interest to the account, unless you have been told otherwise by the debtor or their debt adviser.

3. Update your records

You should update your records to show that the debtor is in a Breathing Space, and mark the account as in a 'paused' or 'frozen' status. You should also ensure that your systems are set up to stop any automated recovery processes.

4. Do not harass the debtor

During the Breathing Space period, you should not contact the debtor for payment or take any other recovery action. This includes phone calls, letters, emails, or visits to the debtor's home or place of work.

5. Respond to requests for information

During the Breathing Space period, you should not contact the debtor for payment or take any other recovery action. This includes phone calls, letters, emails, or visits to the debtor's home or place of work.

6. Seek advice before taking further action

If you think there are exceptional circumstances that warrant further action, you should look for advice from the debt advisor from Acme Credit Consultant.

Arrow

FREE  DEBT ADVICE