A final demand is usually a letter sent by the creditors you owe money to demanding payment -usually within 7 days before they take further action.
You should not ignore a Final Demand letter and should always contact the creditor immediately to avoid them taking further action. If you ignore it and they issue proceedings against you they will usually add their additional costs onto the amounts you owe.
What you should do if you receive a final demand letter.
Firstly you should check the amounts they are claiming. If you disagree with what they say you should contact the creditor immediately to explain that you do not agree with the amount owed. You should ask them not to take any further action until the amount owed is agreed.
If the amount they are claiming is correct you should contact the creditor immediately and explain why you have not paid the sums due. They will usually be sympathetic especially if you agree to start repaying the debt in instalments over a period of time. Try and reach a sensible agreement with them that you know you can afford to keep - as to break a further promise of payment may result in them taking further action. What you are doing here is known as self debt management.
If you cannot agree a suitable repayment plan with the creditor then you should seek immediate advice to avoid matters getting worse.
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ClearDebt is a trading style of Abacus (Financial Consultants) Limited (Abacus) which provides all initial debt advice on behalf of ClearDebt where a customer has not already been advised that an IVA is the most appropriate debt solution for their circumstances.
ClearDebt proposes and administers Individual Voluntary Arrangements (IVAs) and only provides advice once it is apparent that an IVA is likely to be the most appropriate debt solution. All such advice is therefore in reasonable contemplation of an insolvency appointment.
Abacus is authorised and regulated by the Financial Conduct Authority and is permitted to offer debt counselling and debt adjusting services for a fee. Reg. No.482265.
You can find out more about dealing with your creditors in a guide produced by the Insolvency Service: Dealing with Creditors and you can also find alternative free-to-consumer debt free-to-consumer debt advice organisations as recommended by the Money Advice Service, as recommended by the Money Advice Service.
Abacus registrations are as follows: Registered in England & Wales No. 03907493. Claims Management Regulator No. CRM19025. Data Protection Act 1998 registration number Z9487675.
ClearDebt registrations are as follows: Registered in England & Wales No. 05157741. Data Protection Act 1998 registration number: Z8927124.
David Emanuel Merton Mond and Elaine Masters are licensed to act as Insolvency Practitioners in the UK by the Insolvency Practitioners Association. Registered Office for both companies is: Third Floor, Nelson House, Park Road, Timperley, Altrincham, Cheshire WA14 5BZ.