Holding letters
It is often necessary to write an initial letter or email requesting information that you require to advise the client and identify the available options. Such information includes:
•copies of any agreements, default notices and/or termination letters, where relevant;
•a statement of account, showing full details of the outstanding balance and how this is calculated;
•details of any court orders or other enforcement action.
The letter should also ask the creditor to put a hold on any further collection activity and to freeze any further interest and/or charges being added to the account until the information requested has been supplied and the client has had an opportunity to put forward their proposals for resolving the matter.
Any breaches of the Financial Conduct Authority’s (FCA’s) Consumer Credit Sourcebook by the creditor or debt collector should also be addressed in this letter. If there is an issue in relation to restarting the prescription clock, a standard holding letter or email should not be used and any letter sent to the creditor should not be an acknowledgment of the debt.