Arvato Financial Solutions
Received a letter or call from Arvato? This guide explains who they are, why they’re contacting you, your legal rights, and what options you have.
Who Are Arvato Financial Solutions?
Arvato Financial Solutions is a major international debt collection company and part of Bertelsmann SE & Co. KGaA, one of the world’s largest media and services companies. They operate across multiple countries including the UK.
Arvato provides debt collection services for a wide range of clients, particularly local authorities and government bodies, as well as private companies. Unlike some debt collectors, Arvato typically collects debts on behalf of other organisations rather than purchasing debts outright.
They may contact you because:
- A company has hired them to collect a debt you owe
- A local authority has instructed them to recover council tax or other debts
- A utility company has passed your account to them for collection
FCA Registration: Arvato Financial Solutions is authorised and regulated by the Financial Conduct Authority for consumer credit activities.
Who Does Arvato Collect Debts For?
Arvato works with many organisations including:
- Local authorities: Council tax arrears, housing benefit overpayments
- Utility companies: Water, gas, electricity arrears
- Government bodies: Various public sector debts
- Private companies: Telecoms, retail credit
- HMRC: Certain tax-related debts
Arvato is particularly well-known for collecting council tax debts on behalf of local authorities.
Contact Details
Arvato Financial Solutions
Victoria House Pearson Way Stockton-on-Tees TS17 6PT
Telephone: 0330 088 7842
Website: www.arvatofinance.co.uk
Your Legal Rights When Dealing With Arvato
You have important protections under the Consumer Credit Act 1974 and FCA regulations:
Arvato Must:
- Provide proof of the debt if you request it
- Tell you who the original creditor is
- Treat you fairly and not use aggressive practices
- Accept reasonable payment offers based on your circumstances
- Communicate in writing only if you request this
Arvato Cannot:
- Harass you with excessive phone calls
- Contact you at unreasonable times (before 8am or after 9pm)
- Discuss your debt with family, friends, or employers
- Threaten legal action they don’t intend to take
- Pretend to have powers they don’t have
- Add unreasonable charges
- Pressure you into unaffordable payments
How to Respond to an Arvato Letter
Step 1: Don’t Ignore It
Ignoring debt collection letters won’t make the debt disappear. Depending on the debt type, it could lead to:
- A County Court Judgment (CCJ)
- Bailiff action (especially for council tax)
- Attachment of earnings
- Deductions from benefits
Step 2: Identify the Debt Type
Different debts have different consequences:
- Council tax: Can escalate to bailiffs more quickly than other debts
- Utility debts: May affect your credit file
- Government debts: May have specific enforcement powers
Step 3: Verify the Debt
Write to Arvato requesting:
- Confirmation of who the original creditor is
- A breakdown of how the amount was calculated
- Copies of any relevant documentation
Step 4: Respond Based on Your Situation
If you can pay in full: Contact Arvato to arrange payment.
If you can only afford small payments: Send a financial statement showing your income and expenses. Offer what you can realistically afford.
If you cannot pay: You may qualify for a debt solution. For council tax specifically, contact your local authority about hardship schemes.
Council Tax Debt and Arvato
If Arvato is collecting council tax, be aware:
- Council tax debt can escalate to bailiffs faster than other debts
- A liability order may already have been obtained by the council
- Bailiffs can be instructed without further court action once a liability order exists
- You may be able to negotiate directly with your council
Important: If you’re struggling with council tax, contact your local authority about:
- Payment plans
- Council Tax Reduction (formerly Council Tax Benefit)
- Discretionary hardship funds
Can Arvato Send Bailiffs?
It depends on the debt type:
- Council tax: If a liability order has been granted, bailiffs can be instructed
- Other debts: They would need a County Court Judgment first
Arvato themselves are not bailiffs, but they may instruct enforcement agents if they have the legal authority to do so.
How to Complain About Arvato
If Arvato has treated you unfairly:
Complain to Arvato directly in writing. They must respond within 8 weeks.
Contact the Financial Ombudsman Service if unsatisfied:
- Phone: 0800 023 4567
- Website: www.financial-ombudsman.org.uk
For council tax complaints: Contact your local authority directly
Struggling With Arvato and Other Debts?
If you have multiple debts including those being collected by Arvato, government-approved solutions can help consolidate your debts.
Your Debt Solution Options
Individual Voluntary Arrangement (IVA)
A legally binding agreement:
- Write off up to 70% of unsecured debt
- One affordable monthly payment
- Legal protection from most creditors
Note: Council tax debt cannot always be included in an IVA, but other debts can be.
Check if you qualify with our free IVA calculator
If you have:
- Debts under £30,000
- Little disposable income
- Assets under £2,000
- Costs £90, debts written off after 12 months
An informal arrangement with reduced monthly payments.
Frequently Asked Questions
Why is Arvato contacting me about council tax?
Your local authority has instructed Arvato to collect the debt on their behalf. The debt is still owed to the council, but Arvato manages the collection process.
Can I negotiate with Arvato?
Yes. Arvato can accept payment plans and may have some flexibility, especially if you provide evidence of your financial circumstances.
Will this affect my credit score?
Depending on the debt type, it may already be on your credit file. Council tax doesn’t appear on credit files, but a CCJ would.
What if I dispute the debt?
Contact Arvato in writing explaining why you dispute it. For council tax, you may also need to contact your local authority directly.
Take control of your debt situation. Use our free IVA calculator to see how much you could write off.