Glossary
We know that there are a lot of technical terms and jargon associated with debt collection. So, in this section, we've collated a useful glossary of the terms you can expect to come across when dealing with debt collection.
Bankruptcy petition
A formal request filed in court by a creditor upon an individual unable to repay debts. It triggers insolvency proceedings and aims for debt relief or restructuring.
Charging order
A court order securing a debt against a debtor's property, giving creditors the right to proceeds from its sale.
Company dissolution
The legal process of closing a company, settling debts, and distributing remaining assets to shareholders, ultimately terminating its existence.
County Court Judgment (CCJ)
A court order demanding debt repayment, impacting credit scores and potentially leading to enforcement actions if not satisfied.
Credit score
A numerical representation of a person's creditworthiness, based on credit history and financial behaviour. Higher scores indicate lower credit risk.
Credit Service Association (CSA)
An organisation representing debt collection agencies, promoting ethical practices within the credit industry.
Creditor
An individual or entity in to whom money is owed, often stemming from a loan or credit transaction.
Debt management plan
A structured arrangement between debtors and creditors, facilitating the repayment of outstanding debts over an agreed-upon period.
Debt purchase
The acquisition of debt by a third party, typically a debt collection agency, seeking to collect the owed amount.
Debtor
An individual or business owing money to another party.
Default
Failing to meet financial obligations, such as missing loan payments, resulting in adverse consequences for debtors.
Financial Conduct Authority (FCA)
The UK regulatory body overseeing financial markets, ensuring consumer protection and maintaining market integrity.
Inflation
The rate at which prices for goods and services rise, impacting purchasing power over time.
Information order
A legal request for financial information to aid debt recovery or insolvency proceedings.
Interest
The cost of borrowing money, expressed as a percentage and commonly applied to loans or credit balances.
ISO:9001
An international standard for quality management systems in the UK, ensuring consistent product and service quality within organisations.
Letter before action
A formal letter notifying debtors of impending legal action unless specific actions, like debt payment, are taken.
Letter of claim
A formal document in outlining legal claims and demands for resolution, often preceding litigation.
Liabilities
Debts and obligations owed by individuals or businesses.
Retention payment
A portion of a contract payment held until the completion of specified tasks or project milestones.
Schedule 10 Notice
A request for proposals for repayment within a specific timeframe, rather than a demand for payment.
Statute barred debt
A debt no longer legally enforceable due to its age.
Statutory demand
A formal demand for payment, often a prerequisite for insolvency proceedings.
Third party debt order
A court order allowing the seizure of funds owed to a debtor by a third party.
Winding up order
A court order to liquidate a company's assets and distribute proceeds to creditors, leading to closure.
Writ of control
A court order enforcing a judgment through the seizure and sale of a debtor's assets.
Written off debt
A debt that creditors consider unlikely to be fully recovered, removing it from active accounts, though legal obligations may persist.
