Do I have to Pay HMCTS Debt Collection for Historic Debt?

Did you get a letter from HMCTS about an older debt? Are you asking, ‘do I have to pay HMCTS debt collection for historic debt?’ If so, this post should answer the question so you achieve a better outcome!

Check out the paragraphs below to find out more.

Do you have to pay HMCTS?

You might not have to pay HMCTS.

If you genuinely can’t afford your debt repayments then looking into whether you could have your written off might be just what you need. 

If you want to find out whether you qualify for having debt written off or payments lowered then fill out the short form below.

Who is the HMCTS Historic Debt Team?

The UK Government set up their Historic Debt Team in 2016. The team’s goal is to locate people and get them to settle unpaid court fines!

If you get a letter from the team, chances are they’ve caught up with you over a fine you failed to settle following a court hearing.

Is HMCTS debt collection legit?

Yes. You may think it’s a scam letter but in reality, the HMCTS historic debt team is legit. As mentioned, the government set up this department to recover older court fines that have gone unpaid for ten years or more!

So when you get a letter from the team, it’s best not to bin it. Instead, you should respond to the letter sooner rather than later!

Can you lower your repayments?

If you’re struggling to pay back your debt, then you might qualify for a debt solution.

Some solutions lower your monthly payments while others write off a portion of your debt. 

To find out whether they could work in your situation, hit the button below.

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Why does HMCTS chase old court fines?

The HMCTS historic debt team chases old court fines because a great number of them were going unpaid. A study found the fines were not being settled because of the following:

• They were sent to the wrong addresses
• The court fines weren’t posted at all

How long can you be chased for unpaid court fines?

The HMCTS Historic Debt Team could chase you for an unpaid fine that was issued ten-plus years ago. In fact, reports suggest the team has met with a great deal of success since it was created in 2016!

Is a court fine debt ever statute-barred?

No. Court fines don’t fall under the Limitations Act which means the amount outstanding isn’t statute barred after six years.

The reason is that when you don’t settle a fine issued by the courts, you are effectively breaking the law! Moreover, you can’t settle the fine as part of a debt solution!

Can you settle court fines using a debt solution?

No. You won’t be allowed to include a fine as part of the following:

• Individual Voluntary Agreement (IVA)
• Debt Relief Order (DRO)
• Bankruptcy application

So, when HMCTS historic debt team contacts you over an unpaid fine, you’ll have no choice but to settle what’s owed. Although, you could enter into an agreed payment plan with HMCTS.

Could you use a Statutory Declaration to settle a court fine?

Yes. You may be able to make a Statutory Declaration (section 14) to reduce the amount owed. However, it’s not something many people do because it’s complicated.

Most people who owe money on old fines choose to settle the full amount or pay in monthly instalments to clear the debt.

Should you ignore HMCTS debt collection?

No. It’s never a good idea to ignore correspondence from the HMCTS Historic Debt Team.

However, you should also check whether the letter is genuine by contacting the team directly sooner rather than later!

Check out the question someone asked on a popular forum about HMCTS:

Source: Moneysavingexpert

What happens when you don’t respond?

When you don’t respond, the situation just gets worse rather than better. Plus, you could end up with enforcement agents visiting you at home!

Moreover, the government debt team should take your personal circumstances into account. They could be open to any offers to settle an unpaid fine in instalments if you can’t afford to settle the full amount!

What happens when you can’t pay an old court fine?

The HMCTS historic debt team should take your personal situation into consideration when you can’t settle an old fine in full. Lots of people are in financial hardship these days, so you’re not alone.

You should seek debt advice from a charity and you should calculate how much you can realistically afford.

That said, you must make sure the amount you propose to pay every month is something you can afford.

A default on an agreed payment arrangement to the HMCTS Historic Debt Team could make matters worse!

Does the HMCTS team have to accept your proposal?

No. The HMCTS Historic Debt Team is not obliged to accept a payment arrangement to settle the amount owed in instalments.

For example, if the debt is passed to an enforcement agency, it’s too late to pay the team directly. Any payments made at this stage are dealt with by the enforcement agents.

It means you may have to pay additional fees to cover the cost of the enforcement agents! So, the original unpaid court fine could increase making it harder to settle.

Which enforcement agencies does the HMCTS team use?

The HMCTS Historic Debt Team tends to use three approved enforcement agents which I’ve listed below:

• Collectica Limited
• Excel Enforcement Limited
• Marston Holdings

So, when you get a debt letter from any of the above with ‘HD’ or ‘HMCTS HD’, it relates to an unpaid court fine. It’d be a mistake to ignore it.

Will your details be sent to enforcement agencies straight away?

No. The HMCTS historic debt team typically attempts to resolve things with you first. You’d receive a ‘Further Steps Notice’ which details what happens when you don’t settle the amount owed.

You shouldn’t ignore the notice because it allows you the chance to settle what’s owed. Plus it stops things from going any further.

It’s worth noting you can file an appeal within 10 days of receiving a Further Steps Notice.

How do you contact the HMCTS Historic Debt Team?

As mentioned, it’s always best to check whether a debt letter from the historic debt team is genuine. You should do this by contacting the team as soon as possible.

Moreover, staying in touch with them means the matter won’t be escalated to an enforcement agency!

You can contact the HMCTS Historic Debt Team in the following ways:

Can you seek debt advice?

Yes. You should seek debt advice if you’re experiencing financial hardship and struggling to pay bills. Especially when a letter from the HMCTS Historic Debt Team falls through your letterbox unexpectedly!

You could contact an independent debt adviser, but they charge for the advice they provide. On the other hand, several charities provide free debt advice which could be the better option.

I’ve listed the contact details of three of the leading debt charities below:

• National Debtline 
• Citizens Advice
• Step Change Debt Charity

“It will only get worse” 😩

It’s cliché to say, but with debt it’s true; the longer you leave it, the worse the problem gets. 

There are straightforward and effective ways to deal with debt, but you have to know your options. 

Fill out the short form to find out about the debt solutions that could reduce your monthly payments or even write off some of your debt.

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Lastly, do I have to pay HMCTS debt collection for Historic debt?

Yes. You may have to pay the  HMCTS historic debt team if you have an unpaid court fine. Moreover, they can chase you for payment for ten years or more!

You should always respond to the team as soon as you can to prevent things from escalating. You’ll incur more fees if HMCTS refers the matter to an enforcement agency.

It could make the debt harder to settle.

Also, you can’t use any of the debt solutions to settle the matter. You can only negotiate a payment plan with the historic debt team provided the matter hasn’t been passed to an enforcement agency!

The one thing you shouldn’t do is ignore any correspondence from HMCTS because the problem won’t vanish. It just makes matters worse and more stressful.

You could get a County Court Judgement recorded on your credit file. It’d make it hard to get a loan, credit card or mortgage until the CCJ expires which is generally six years later.

Thanks for reading my post. I hope I’ve helped answer the question of whether to pay the historic debt team money that’s owed.

Frequently asked questions

Why did I receive a letter from HMCTS?

You’d get a letter from HMCTS because you’ve got an unpaid court fine. If the matter has been passed to an enforcement agency, it’d include HD or HMCTS HD as a reference.

Is HMCTS a UK government department?

Yes. HMCTS is an executive agency which is sponsored by the UK’s Ministry of Justice. So when they get in touch, it’s best to respond rather than ignore their letter.

What happens when you ignore a court fine?

The court could take money from the benefits or wages you receive. Bailiffs could seize your possessions to settle what’s owed and you’d incur more fees on top of the original amount.

Why did I get a court fine?

You’d get fined if you lose a court case, or you’ve been convicted of a crime. The amount you’d have to pay depends on the seriousness of the offence.