Harassment from Creditors and Debt Collectors
Debt Collectors calling at your home are not bailiffs and they have no right to threaten you or to take away your possessions.
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A tactic used by some unscrupulous debt collection agencies is to give the impression they are bailiffs. This is of course not legal and you should inform your local trading standard office. If you are being threatened, call the Police.
Debt Collectors are not Bailiffs. Bailiffs can only get involved once you've been to court for that particular debt, and then you have failed to comply to the terms of the court order describing how you should repay it. All a debt collector can do is ask you to pay - nothing more. You do not even have to speak to them.
When does Harassment Become an Offence?
Section 40 of The Administration of Justice Act 1970 provides that a person commits an offence if, with the object of coercing another person to pay money claimed from the other as a debt due under contract, he or she:
- Harasses the other with demands for payment which by their frequency, or the manner or occasion of their making, or any accompanying threat or publicity are calculated to subject him or his family or household to alarm, distress or humiliation.
- Falsely represents, in relation to the money claimed, that criminal proceedings lie for failure to pay it.
- Falsely represent themselves to be authorised in some official capacity to claim or enforce payment.
- Utters a document falsely represented by him to have some official character or purporting to have some official character which he knows it has not.
Debt Collector Harassment - Explained in Plain English
The above is technical legal speak, which has been translated into plain english guidelines by the Office of Fair Trading (OFT).
The OFT say that:-
It is unfair to communicate, in whatever form, with consumers in an unclear, inaccurate or misleading manner.
This means creditors/debt collectors can't:-
- Contact you at unreasonable times of the day.
- Use confusing legal jargon.
- Ask you to phone them on premium rate numbers.
- Send letters that look like court claims.
- Not make it clear who they are or what their role is.
- Not provide balance statements about the debt when requested.
The OFT say that:-
Those contacting debtors must not be deceitful by misrepresenting their authority and/or the correct legal position.
This covers a range of lies debt collectors try to use to frighten people into giving them money. For example, they often:-
- Claim to work for the court, or be a bailiff, or give the impression of this.
- Say or imply not paying your debt is a criminal offence.
- Say or imply action can be taken that is not legally possible such taking away some of your possessions to cover the debt.
- Say or imply that court action has been taken against you when it hasn't.
- Use a business name or branding implying they are a government body.
The OFT say that:-
Putting pressure on debtors or third parties is considered to be oppressive.
This means creditors/debt collectors they are not allowed to:-
- Contact you too frequently.
- Pressurise you to sell property or borrow money elsewhere to settle the debt.
- Use multiple debt collection companies concurrently.
- Not tell you when your debt has been passed to another company.
- Pressurize you to pay in full or in installments you cannot afford.
- Make threatening gestures or statements.
- Ignore disputes about whether you owe the money.
- Attempt to embarrass you in public.
- Threaten to tell a third party about your debts such as a neighbour, your family or employer.
The OFT say that:-
Dealings with debtors are not to be deceitful or unfair.
This means creditors/debt collectors they are not allowed to:-
- Send letters addressed to the occupier or discuss the debt with someone without being sure they are you.
- Refuse to deal with an adviser acting on your behalf.
- Not accept reasonable offers or passing on payments you make.
- Refuse to suspend action if you dispute the debt.
The OFT say that:-
Charges should not be levied unfairly.
This means creditors are not allowed to:-
- Claim collection costs when the original credit agreement didn't facilitate this, and to tell you are legally liable for these costs.
- Not explain specific amounts that can be added for collection costs in the original credit agreement.
- Add unreasonable charges.
The OFT say that:-
Those visiting debtors must not act in an unclear or threatening manner.
This means debt collectors should:-
- Explain the reason for any visit, giving you notice of the time and date they will visit.
- Not visit you if they know you are ill or vulnerable.
- Leave if they find you are unwell or distressed.
- Not Visit if you do not want them to.
- Leave when you ask them to.
- Not visit you at work or somewhere like a hospital.
If you are being harassed by debt collectors, then please tell us about your circumstances. If you are genuinely unable to repay your debts at the rate you are being asked, then the law is on your side.
Contact us today and we'll deal with the debt collectors for you. We'll arrange for a payment level affordable to you and you need not worry about debt collectors anymore.
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This material is for general information and only constitutes advice in the broadest of terms. You should not rely on this information to make any decisions. Call our advisors on 0800 043 2444 for professional advice for your own particular situation.