Letter from Aberdeen Financial? Read this before you reply

A letter from Aberdeen Financial is different from a typical debt-collector letter. Aberdeen Financial is an original lender — a Scottish-based finance company offering both secured and unsecured loans — not a third-party collection agency. That distinction matters: the loan account is theirs, settlement decisions sit with them, and the IVA treatment depends on whether the loan is secured.

This guide covers who Aberdeen Financial are, what they can legally do, the two checks worth running, and how an IVA treats unsecured and secured balances.

Who Aberdeen Financial are

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Aberdeen Financial is a Scottish finance lender regulated by the Financial Conduct Authority for consumer-credit lending. They offer a range of personal-finance products, typically including unsecured personal loans and secured lending against property or assets.

Because Aberdeen Financial originates and owns the loan, they handle collections in-house first. Where accounts fall into significant arrears or default, they may:

• Refer the file to in-house recovery teams
• Instruct external solicitors (in Scotland often firms like Aberdein Considine) for litigation
• Sell the defaulted account to a debt purchaser as a last resort

The first letter you receive should make clear whether Aberdeen Financial still owns the account or whether it has been assigned. If unclear, ask in writing — under CONC they must tell you.

What Aberdeen Financial can and cannot legally do

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Aberdeen Financial are a regulated lender. They can:

• Send arrears letters and default notices
• Charge interest and fees in line with the original credit agreement
• Issue a default notice and serve a sheriff court writ (or county court claim in England)
• After a court decree/CCJ, instruct sheriff officers (Scotland) or enforcement officers (England) to pursue diligence/enforcement
• For secured loans, ultimately seek repossession via the courts

They cannot force entry to your home for unsecured debt, take goods without a court order, threaten arrest (the matter is civil, not criminal), or charge fees beyond what the original credit agreement and consumer-credit rules allow.

Two checks worth running first

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1. Section 77/78 CCA request. Even with the original lender, you have the right to request a true copy of the original signed credit agreement and statement of account. While they cannot comply, the debt is unenforceable in court.
2. Prescription / limitation check. In Scotland, debts prescribe after 5 years without a payment, written acknowledgement or court action — and once prescribed, the debt ceases to legally exist. In England and Wales, the period is 6 years (statute-barred but still legally existing).

Don’t make a token payment before checking the dates. Even £1 resets the clock.

Secured vs unsecured — how an IVA treats your loan

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This is the crucial distinction for Aberdeen Financial:

• Unsecured personal loan — the entire balance goes into an IVA on the same basis as a credit card or overdraft. Once the IVA is approved, Aberdeen Financial must stop pursuing the included balance.
• Secured loan (against property or vehicle) — the security itself is excluded from the IVA. The IVA covers only the unsecured shortfall if the security is realised and the proceeds don’t clear the balance. While the IVA is in place, the secured monthly payment is treated as a priority household cost.

If you don’t know whether your loan is secured, the original credit agreement will say so. Aberdeen Financial will also tell you in writing if asked.

How Aberdeen Financial tend to pursue arrears

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The typical track:

1. Arrears letters and phone calls
2. Default notice — formal step before further action
3. Account placed with internal recovery, external solicitors, or sold to a debt purchaser
4. Sheriff court action (Scotland) or county-court claim (England) for payment
5. Decree/CCJ; charge for payment served by sheriff officers in Scotland
6. Enforcement — earnings arrestment, bank arrestment, attachment, or repossession of secured assets

If a court writ or claim form arrives, respond before the deadline. Default decrees are difficult to recall.

What happens if you ignore Aberdeen Financial

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Ignoring Aberdeen Financial leads to escalating contact, default notices and ultimately court action. For unsecured loans this means a court decree (or CCJ) and sheriff-officer diligence. For secured loans it can ultimately mean repossession of the security. Either way, the unpaid balance grows with interest and post-default charges.

Routes out

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• Restructure with Aberdeen Financial directly — payment holiday, term extension, or affordable plan based on your Standard Financial Statement
• Settle in full with a written discount on older or charged-off balances
• IVA for £5,000+ of unsecured debt — covers any unsecured Aberdeen Financial loan in full, and any unsecured shortfall on a secured loan after realisation
• Scottish Trust Deed for Scottish residents — the Scottish equivalent of an IVA
• Debt Relief Order in England and Wales (under £50,000); Minimal Asset Process in Scotland
• Sequestration / bankruptcy where no realistic monthly contribution is possible

Pitfalls when Aberdeen Financial are involved

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• Don’t confuse secured and unsecured treatment. A secured loan stays outside the IVA except for any shortfall.
• Don’t ignore default notices. They are formal pre-litigation steps.
• Don’t accept verbal arrangements. Get any plan or settlement in writing.
• Don’t reset the prescription clock with a token payment. Check dates first.

Frequently asked questions

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Is Aberdeen Financial a debt collector? No. They are an original lender — a Scottish finance company. Most contact comes directly from them or their in-house recovery team.

Will an IVA write off my Aberdeen Financial loan? Yes for unsecured loans (in full). For secured loans, only any unsecured shortfall after the security is realised.

I’m in Scotland — should I do an IVA or a Trust Deed? Both work. A Trust Deed is the Scottish-administered equivalent of an IVA with similar terms. A 2-minute check usually identifies which suits your situation.

Can Aberdeen Financial repossess my home? Only if the loan is secured against the property and after a court order. Unsecured loans cannot lead to repossession.

Related guides

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• Aberdein Considine — Scottish solicitors
• Opos — Glasgow-based UK collector
• How long can I be chased for a debt?
• Can debt be written off?
• How do I apply for an IVA?