Tips for recovering money owed from family members
Tips for Recovering Money Owed from Family Members
Frontline Collections is one such agency.
Our in-house team of debt recovery experts recover thousands of pounds worth of private debt every week for individuals across the UK.
There are many reasons why a private debt may occur in the first place.
One of the more common examples is that of those who need help recovering money owed from family members.
People help their family financially in many different ways.
For example, people may provide personal loans to help a family member who needs some help.
Or, one family member may buy goods or services on behalf of another one.
Regardless of the scenario, Frontline Collections can provide a solution.
Private Debt Collection – Recovering Money Owed from a Family Member
Private debt (or personal debt as it is sometimes known) is one of the most common forms of debt in the UK.
In 2016-2017, almost one-third of Britons have had some kind of disagreement or dispute with a friend or family member over the subject of owed money.
Many of these unpaid debts were around the figure of £100 or less, whilst some could be in the thousands of pounds.
This issue affects people from all walks of life, regardless of their location in the UK or their occupation.
There are many solutions to this issue. The first thought for many might be court action or a debt collection agency such as Frontline Collections.
These methods can be very effective, especially in the case of a professional debt collection agency.
You can take several practical steps to protect yourself and help recover the debt.
Below, our team of expert debt collection agents have given us some straightforward steps to recovering from family members or friends.
Working together to set up a payment plan is a good way of recovering money owed from family members
How to get Money Owed from a Family Member
1. Get a Written agreement
No matter what the case is, with any financial matter it is, it is imperative to get an agreement in writing before committing any money.
In the case of a loan to a friend or family member, this is a must-have!
Although it may seem ‘over the top’, or perhaps even bad-mannered, it is a completely appropriate and necessary action.
This is especially true if there you have any doubt that you may not get the money back in the future,
This agreement should clearly state the terms of the loan. These terms should include repayment dates, and make plain the obligations the person will have to you.
2. Propose a Repayment Schedule
If you are lending a large amount of money, it may be appropriate to suggest a repayment schedule.
This would be instead of asking for the whole sum back in one go.
An example of this may be to request that the person you are lending money to set up a standing order for a certain amount every month to go into your bank account.
Not only will this make it a lot easier for them, but it actually increases the likelihood that you will get your money back.
3. Document Everything
Keeping proper and thorough documentation of all matters relating to finances is a very proactive measure.
Good documentation details every step of a process. It should begin before handling any money and have details on all obligations and communications.
If the debtor misses a payment date, record this and pursue the payment with a friendly call, text or email.
Always make sure that you keep a record of all requests and correspondence. This will create a paper trail in case you need to escalate the matter to a professional debt collection agency.
4. Don’t get Confrontational
It is only natural to feel frustrated, angry and hurt when someone you have loaned money to in good faith does not repay you.
This is completely understandable, but if you let your feelings get the better of you it can make the collection process problematic.
If you are recovering money owed from family members and the discussion becomes heated, this could not only make the collection process harder but also damage your relationship.
If the person you have lent money to has not paid you back, you must try to stay calm and composed.
Maintaining this composure throughout all communications is critical to success.
If the person becomes confrontational or aggressive with you when you are talking to them, do not fall into their trap.
They may want to provoke you into an argument, giving them grounds to hold payment back in their eyes.
5. Take Action
With the proper preparations in place, it should not reach the point where the individual is unwilling to pay the loan back.
If this the case, it is time to escalate the matter and seek professional help.
Never ‘write off’ the debt – even though it may seem tempting to do so, this should not be an option under any circumstance.
Recovering money owed from family members can be a complex and emotional process.
Having a professional personal debt collection service at hand can help to minimise the stress and upset that this can cause.
Court action is also an option, but this is typically a lot more expensive.
Solicitors charge an hourly rate, with an average of £200 per hour. This cost can quickly mount up, and the process can take a very long time to produce any kind of result.
As well as this the debtor may dispute the matter.
This may make the cost of a solicitor even larger as they need to take more time to resolve the matter,
Using a Professional Debt Collection Agency for help with recovering money owed from family members is the best way to achieve success.
Agencies such as Frontline Collections provide a low-cost and effective service.
They will not jeopardise any relationship, and they handle all cases with the utmost professionalism.
For more information on using Frontline Collection’s private debt collection service, speak to us today.
One of our friendly debt collection experts will be able to help you and give you some free advice on what your options are.
You can reach us by calling the helpline on 0333 043 4426 and we will provide a free and frank assessment of your situation.
All enquiries are completely confidential.