Link Financial debt: what to do if Link Financial writes to you

Link Financial Outsourcing Limited, which trades as Link Financial, isn’t a household name. Its letters often arrive after an old loan or card account has gone quiet for some time. Link says it has been buying portfolios of unpaid loans since 1998, and it works in several European countries as well as the UK.

What Link Financial does

Link has two roles, and either could explain your letter:

• Buyer. Link buys portfolios of unsecured debt, such as personal loans, credit cards and retail credit, from banks and other lenders.
• Servicer. Link manages accounts for others. Its website says your bank, card provider or other lender may have assigned the management of your loan to Link. Ombudsman decisions also describe cases where a separate debt purchaser owned the account and appointed Link to run it.

In both cases, Link tells you to make all future payments to Link instead of your original lender.

What the notice of assignment means

Link says that under section 136 of the Law of Property Act 1925 it must send you a notice of assignment confirming the debt is now due to Link. The original lender often sends its own letter confirming the sale. Keep both.

Some people write back asking for the deed of assignment, the private contract between seller and buyer. In a published decision about Link, the Financial Ombudsman found that Link didn’t have to provide it, because the notice of assignment was enough to show who owned the account. Your time is better spent checking the debt itself.

Will Link add interest?

Link’s customer information says most accounts don’t have interest added during the collections process, and that your notice of assignment will say whether yours does. Some personal loans do keep building interest at the original contract rate. If you’re unsure, ask for a statement of account.

Link can’t send bailiffs

Link is a debt collector. It can write, phone, text and email, and ask you to pay. It can’t enter your home, take your things or charge bailiff fees. Those powers only arise after a county court judgment that you then don’t pay. Read debt collectors vs bailiffs.

Check the debt before you pay

1. Compare it with your records and credit file. Check the original lender, the account and the default date.
2. Ask for a copy of the credit agreement. For loans and cards covered by the Consumer Credit Act 1974, you can ask under sections 77 to 79 for a £1 fee. Until a valid request is met, the agreement can’t be enforced in court.
3. Ask for a statement of account showing payments, charges and any interest.
4. Dispute it in writing if something is wrong. Under the FCA’s rules, collection should pause while a dispute raised on valid grounds is looked into.

Use the contact details on your Link Financial letter.

Could the debt be statute-barred?

Under the Limitation Act 1980, most unsecured debts in England and Wales can’t be taken to court once six years have passed, usually from the default, without a court claim. A payment or written acknowledgement before then restarts the clock. A sale doesn’t. Read statute-barred debt explained.

What happens if you ignore Link

Letters and calls will continue. If the debt isn’t statute-barred, the owner can issue a county court claim. Link says that if an account goes to court, statutory interest can be added up to the date of judgment. Ignoring a claim usually leads to a CCJ, which can be enforced by bailiffs or deductions from your wages. If a CCJ was made without your knowledge, read how to set aside a CCJ.

Your options if you owe the money

Link says it will look at a more manageable arrangement if you’re struggling. Under the FCA’s rules on arrears and debt recovery (CONC 7), it must treat you fairly and take your circumstances into account.

• Agree an affordable payment. Base it on a budget, with rent, council tax and energy paid first. Read priority debts.
• Ask for Breathing Space through a debt adviser if you need 60 days’ protection while you plan.
• Consider a debt management plan if you have several debts and can repay in full over time.
• Look at an IVA or Debt Relief Order if full repayment isn’t realistic.

If the debt was a credit card, read can’t pay your credit card? For a free view of all your options, see free debt advice.

How to complain about Link Financial

Complain to Link first, in writing, explaining what went wrong and what you want. If you don’t get a final response within eight weeks, or you disagree with it, you can take it to the Financial Ombudsman Service for free.

Frequently asked questions

Is Link Financial a real company?

Yes. Link Financial Outsourcing Limited is authorised and regulated by the FCA, and you can check it on the FCA’s Financial Services Register. Always use the contact details on your letter rather than a link in an unexpected message.

Do I have to pay Link if my debt was sold to them?

If the debt is valid and not statute-barred, yes. Selling it moved the right to collect to the new owner. You can still check the debt and offer only what you can afford.

Can Link Financial take me to court?

If the debt isn’t statute-barred, the owner of the debt can issue a county court claim. If you get a claim form, respond by the deadline on it.

Sources

• Link Financial, Link Financial Outsourcing Limited
• Link Financial, Received a letter from Link Financial
• Link Financial, Debt purchase
• Financial Ombudsman Service, Decision DRN-5704643
• Financial Ombudsman Service, Decision DRN-5387972