Hi,

I'm seeking some urgent advice about a debt in the UK which has been passed from debt collectors in the UK to a debt collector here in Switzerland.

My question is firstly what is the best path to take as I don't have the funds to pay.

Also how will this effect my status in Switzerland and what is the worst case scenario if I'm unable to make payment?

Please any advice would be of great help.

Can they take legal action here, in a Swiss court, for a debt in another country ?

It may seem appealing to move abroad to escape UK debts, and creditors have been known to stop chasing those they can't find, however moving abroad doesn't always mean they can't find the debtor. Creditors use some of the following tactics to trace debtors; talking to neighbours at their debtor's last known address and tracing their activity through using cash. In some cases creditors have relations with other credit companies in that country, making it easier for them to find you. Once the creditor knows which country you are in, they can trace you relatively quickly and start pursuing you for the debt.

On the face of it, English law cannot be applied in another country, as they have no jurisdiction, but I suspect that there are ways and means to get through the loopholes.

You should ideally establish a repayment agreement with the creditors. There are many options to clear your debt, even if you no longer live in the UK, for example bankruptcy, IVAs or DMPs. THere are many Debt Consolidation companies that can offer advice on all UK debts even if you no longer live in the country, however if you are abroad you should make it a priority to make a payment agreement with your creditors. If you fail to make a payment agreement your new life in a new county could be affected as your credit rating may result in you being unable to get jobs or a simple bank account.

I came across a forum website where you may be able to get more specific advice. http://www.consumeractiongroup.co.uk/

Good luck!

Just to clarify, they have said they have passed it here or you are being approached by a Swiss debt collection agency?

So I guess the reverse situation could also take place.
Your swiss debt could haunt you even after you leave CH.
Although if you keep up with payments that shouldn't be a problem.

Defaulting on your car debt is not a wise idea. Especially if you plan to come back.

LOL You must think I'm a horrible horrible man!

Yes, you never know. Also, I somehow don't think they would let you get off that easy. They'd probably figure out how to make your life hell.

I have been approached by a Swiss company demanding payment in the next 14 days.

That's rediculous.

Why should a debt collector in CH be able to buy your UK debt?

I have a very close frind who has 20k of debt in Holland, and now he's back in the Uk and hasn't heard anything from them in 7 years!

Why not... there's people who bought tranches of mortgages in the US...

A close friend, ha

This is an interesting link.

thats a great link and so far seems like what i'm looking for. Thanks

I am genuinely interested to know how someone can be 20k in debt (excluding mortgage debt)

There has been a massive consumer credit spiral in the UK over the last decade.

BBC article, 29 July, 2004:
UK consumer debt hits £1 trillion

Just 2 years later, it was a trillion for mortgages alone. BBC article, 29 June 2006:
Mortgages debt tops £1 trillion

And by 23 August 2007, a Daily Mail article:
Debt mountain triples to £1.3 trillion (over a decade).

More from that article, on credit cards:

Are you in employment ?
At the moment the exchange rate is the best ever for CHF --> GBP payments and European interest rates are lower than the UK.
If you work for a bank you can get a staff discounted rate.
I have heard that UBS have a staff hardshipfund for emergencies such as this (but I don't know if this will go on your record if you are in big dedt and working for a bank).

So you could get a loan and pay it off from here.

If you approach Swiss companies you are in arrears to they often can put you on payment plans. It will all get resolved by your Kriesburo/Germeinde if you default.

I tried to get off paying Health Insurance when I arrived not relaising it would be back dated. The insurer was more than happy to set up a catch up payment plan.

Good luck.

That web page gives two telephone numbers, the 0800 one at the top of the page and an 0870 one at the bottom.

One thing I had great difficulty with when leaving the UK was that everyone had free or local rate numbers set up, but these were often unreachable from outside the UK. Luckily at my first Swiss employer I could route calls through London, but I would have preferred to hold such discussions on my own phone, for privacy.

This has possibly been answered already over in the phones section, but knowing how to access those numbers from outside the UK would make a useful addition to this thread.