Moorcroft debt recovery: what to do if Moorcroft is chasing you

Moorcroft works differently from firms that buy debts outright. Most of the time it’s hired to collect, and the debt stays with the original company. That changes who you can talk to, who decides on your offer and where you complain.

Who Moorcroft is

Moorcroft Debt Recovery Ltd is part of the Moorcroft Group, based in Stockport. It describes itself as a debt collection agency offering consumer and commercial collection services, with clients in key financial sectors. It’s authorised and regulated by the FCA and is a member of the Credit Services Association.

Its quality certification also covers cases the company has acquired, so Moorcroft may own some debts itself. Your letter should make it clear:

• a notice of assignment means the debt was sold and you now owe the buyer
• wording such as “on behalf of” your lender means Moorcroft is collecting for someone else

Why it matters that Moorcroft is an agent

When Moorcroft collects for a lender:

• you still owe the money to the original company
• Moorcroft works to that company’s instructions
• the company can recall the account, pause collection or agree a different arrangement
• any court claim would normally be made in the company’s name, not Moorcroft’s

The Financial Ombudsman Service has taken the same view. In one published decision, it noted that Moorcroft was simply collecting on the lender’s behalf, so no sale had taken place and there was no deed of assignment to ask for.

Moorcroft can’t act like a bailiff

Debt collectors can write, call, text and email, and ask you to pay. They can’t enter your home, take your belongings or add enforcement fees. Bailiffs only become possible after the company you owe gets a county court judgment and you then don’t pay as ordered. Read debt collectors vs bailiffs.

Check the debt is right

Make sure the debt is yours and the amount is right before you pay anything.

• Ask for the credit agreement. If the account is covered by the Consumer Credit Act 1974, the lender must give you a copy if you ask under sections 77 to 79 and pay the £1 fee. You can send the request through Moorcroft or straight to the lender. Until a valid request is met, the agreement can’t be enforced in court.
• Ask for a statement of account showing how the balance was worked out.
• Dispute it in writing if it isn’t yours or the figure looks wrong. Under the FCA’s rules, collection should be paused while a dispute raised on valid grounds is looked into.

Use the contact details on your Moorcroft letter, and keep copies.

Is the debt too old?

Under the Limitation Act 1980, most unsecured debts in England and Wales become statute-barred if six years pass, usually from the default, without a court claim, payment or written acknowledgement. Handing the account to an agency doesn’t restart the clock. If your debt is that old, check before paying anything. Read statute-barred debt explained.

What happens if you ignore Moorcroft

Moorcroft will usually keep trying to reach you for a while. After that, the account may go back to your lender. The lender could then pass it to another agency, sell it to a debt purchaser, or take court action. A CCJ can lead to bailiffs or an attachment of earnings order.

Your options if you owe the money

Moorcroft’s own commitments page says it has signed up to the Standards of Lending Practice and will look at your overall situation to find affordable options. It asks customers to get in touch even if they can’t pay anything right now. Under the FCA’s rules on arrears and debt recovery (CONC 7), it must treat you fairly if you’re in difficulty.

1. Do a budget. Pay rent or mortgage, council tax and energy first. Read priority debts.
2. Offer what you can afford and ask for written confirmation.
3. Go to the lender if Moorcroft won’t accept a reasonable offer. The lender owns the debt and can step in.
4. Get time if you need it. Breathing Space pauses most creditor action for 60 days.
5. Deal with all your debts together. A debt management plan, an IVA or a Debt Relief Order can include debts that agencies like Moorcroft are collecting.

If your mental health is making things harder, tell Moorcroft and read debt and mental health. You can also get free debt advice.

How to complain

Work out what the complaint is about first:

• How you were treated, such as too many calls or unfair letters: complain to Moorcroft.
• The debt itself, such as whether you owe it or how much: complain to the lender, which owns the account.

If you don’t get a final response within eight weeks, or you’re unhappy with it, you can go to the Financial Ombudsman Service for free.

Frequently asked questions

Does Moorcroft own my debt?

Usually not. It normally collects for the company you owe. If it has bought the debt, you should have had a notice of assignment saying so.

Can Moorcroft come to my home?

A debt collector at your door, from Moorcroft or any other agency, has no right to come in or take anything. You can ask them to leave and to contact you in writing instead.

Can I deal with my lender instead of Moorcroft?

You can contact the lender, especially if Moorcroft won’t agree a fair plan. The lender may still ask you to pay through Moorcroft while the account is with it.

Sources

• Moorcroft Debt Recovery, Home
• Moorcroft Debt Recovery, Our commitments and what we ask of you
• Financial Ombudsman Service, Decision DRN-5252756
• Companies House, Moorcroft Debt Recovery Limited
• FCA Handbook, CONC 7: Arrears, default and recovery