We get a lot of questions from our readers of YesDebtFree via the “Ask a Question” box. Apart from replying to each and every mail, we thought that we should publish answers to some common questions.
In this article we have answered the most common questions about debt collection agencies and their harassments. If your question is not answered here, please write a comment or ask us directly via the “Ask a Question” box.
How to Fight Against Debt Collectors?
- How to Fight Against Debt Collectors?
- What are the debt collecting agency regulations?
- Can a debt collector visit my home without an appointment?
- What happens if I have unsecured debts which are older than 5 or 6 years?
- What are the laws for statute barred debts in UK?
- Are doorstep debt collectors legally powerful?
- What is a court barred debt?
- Can debt collectors follow me?
- Can UK debt collectors trace you in USA or other countries?
- Can a debt collection agency pursue disputed debts?
- What are the debt collection harassment regulations in UK and Scotland?
- Do I have to tell a debt collection agency about my personal finances?
- Can debt collectors collect from you on unsecured debts in UK?
- How to stop debt collectors calling in UK?
- How to deal with banks calling for debt recovery?
- What are the laws for preventing debt collection calls?
- Can debt collectors call me if I inform them not to in UK?
- Can debt collectors call you on Sunday in the UK?
- How often can debt collectors call you in UK?
- What is debt collection consumer protection?
- How to lodge a complaint against a collection agency in the UK?
- How to stop debt collectors when the debt isn’t yours?
- How to deal with debts that has not been acknowledged?
- Are debt collection companies legit? How to find if the company is legitimate?
- Can you stop debt letters being posted to an address in UK?
- What can debt collectors take?
- What to do with letters from debt collectors that are not for you?
- Should I sign a debt collector’s letter?
- How to prosecute debt collection agency?
What are the debt collecting agency regulations?
The Office of Fair Trading regulates the debt collecting agencies in UK. A licensing system has been introduced by the Consumer Credit 1974 (the ‘CCA 1974’) in order to protect the interests of the consumers. The OFT can take strong action against any agency that is found guilty of unfair practices or deemed to unfit. The OFT debt collection guidance ensures fair debt collection. You can contact OFT in writing at:
Enquiries and Reporting Centre Office of Fair Trading Fleetbank House
2-6 Salisbury Square
London
EC4Y 8JX
Online: http://www.oft.gov.uk/contactus
CSA-the only national association in UK has a code for regulating the practices of debt collection agencies. For more information read this PDF file published by CSA.top
Can a debt collector visit my home without an appointment?
No, a debt collector cannot visit your home without prior appointment. Under Common Law, you can refuse anyone an access to your assets without a warrant or a court order. You should write to the debt collector that they cannot visit your place without prior appointment and that you do not want them to visit your home. However, if they pursue you, they will be committing a ‘Tort of Trespass’ and you can deem this behaviour as an act of harassment as mentioned by the Protection From Harassment Act 1997.top
What happens if I have unsecured debts which are older than 5 or 6 years?
In England, if your debt is older than 6 years and has not yet been acknowledged, your creditor cannot take any action against you. These debts become ‘statute barred debts’. Your creditors cannot take you to court for this. In Scotland, for debts which are older than 5 years or older than 6 years, cannot be claimed by creditors. This has been stated under the Prescription and Limitations Act (Scotland) 1973. For England it is stated under the Limitations Act 1980.top
What are the laws for statute barred debts in UK?
The laws for statute barred debts are set under the Limitations Act 1980. If a lender does not recover debts from the debtor for a long time, debts become statute barred. Under the Act, there are two types of time limits:
- 6 years (simple contracts)
- 12 years (contracts under seal)
For Scotland, debts become extinguished if a lender does not recover debts. Debts become barred under the Prescription and Limitation (Scotland) Act 1973.top
Are doorstep debt collectors legally powerful?
No, a doorstep debt collector is not powerful. They do not need any court permission unlike the bailiffs. But they do not have any power like the bailiffs. If these doorstep debt collectors visit your residence, you can ask them to leave. If they still pursue you, just call the police. You can also report this to OFT.top
What is a court barred debt?
Court barred or Statute barred debts are those which cannot be recovered by creditors. The Limitation Act 1980 states that legal action can be taken if these debts are pursued. If you have debts that have not been recovered by your creditors in last 6 years or more, then it is deemed as statute barred debts.top
Can debt collectors follow me?
Yes, they can follow you. At first the debt collectors will look out for your personal information on the electoral roll and get your address. In case you are not on the electoral roll, they will find you out on the DVLA, Land Registry, telephone records, insurance, banks and even employment records. These debt collectors can even visit your town, ask locals about you.top
Can UK debt collectors trace you in USA or other countries?
Yes, they can follow you to USA. In UK there are a number of tracing agents employed by debt collectors to get back to you.top
Can a debt collection agency pursue disputed debts?
Disputed debts are unapproved debts or more than 90 days old. As per the restrictions set by OFT, debt collectors cannot pursue disputed debts. It is illegal to threaten a debtor on this ground.top
What are the debt collection harassment regulations in UK and Scotland?
Creditors cannot harass you to recover debts in UK as well as in Scotland. In UK it is a criminal offence as stated under section 40 of the Administration of Justice Act 1970. The Office of Fair Trading and Trade Associations in UK also have published guidance of activities for creditors to ensure fair debt collection. In Scotland also creditors cannot harass debtors as stated under Protection from Harassment Act 1997.top
Do I have to tell a debt collection agency about my personal finances?
No, you need not tell them. Legally they cannot force you to disclose your personal details as stated by the OFT-Debt Collection Guidance.top
Can debt collectors collect from you on unsecured debts in UK?
Yes, debt collectors can pursue you to recover unsecured debts. Unsecured debts include credit card debts, telephone bills, cable or satellite bills, department store revolving charge accounts, unsecured line of credit at a bank or student loans. Collection agencies can drag you to the court for unsecured debts. But prior to this, however, they will send you lots of letters requesting payment in full.
However if you talk it out wit them and ask them to make separate arrangements they can probably work out something with you. Nevertheless if you are being threatened, call the police.top
How to stop debt collectors calling in UK?
According to OFT guidelines, it is illegal to for debt collectors to contact you frequently. If you report this to OFT, then debt collectors may loose their license. You can also write a letter to the company to stop calling you. For more help you can get in touch with your local Citizens Advice Bureau, the Office of Fair Trading, and the Consumer Credit Counselling Service.top
How to deal with banks calling for debt recovery?
Apart from debt collectors, banks in UK are also using harsh tactics to recover debts from commoners. According to the rules drawn by OFT, customers can appoint financial advisers. They will deal with the bank regarding repayment. The bank is obliged to communicate with the adviser instead of calling the customer repeatedly.top
What are the laws for preventing debt collection calls?
It is essential for debtors to maintain a diary of all the contact between the debt collectors and themselves. If they are calling you frequently, you need to report this to your local Trading Standards office with a diary of harassment. The Trading Standards office will take care of this matter and will issue a verbal warning or criminal prosecution against the debt collection agencies. Even the OFT can revoke their credit license.top
Can debt collectors call me if I inform them not to in UK?
Yes, they should stop calling you provided you write to them about this. You also should mention that you are aware about the OFT guidelines and can report it to OFT if they disturb you further. You can even say that you have a recording service in your phone and so can send evidence to OFT too.top
Can debt collectors call you on Sunday in the UK?
Debt collectors call anytime including Sundays. But as stated under the OFT guidelines, they cannot disturb you or harass you. However, they cannot visit you on Sunday or any other national holiday like Christmas. If you are a victim, report it to OFT.top
How often can debt collectors call you in UK?
There are incidents that debt collectors often call 7 days a week and more than 5 times a day. This can regarded as distressing and harassment as defined by the Protection from Harassment Act 1997. According to the guidelines produced by OFT, it is unfair for the debt collectors to call repeatedly during unsociable hours.top
What is debt collection consumer protection?
Debt collection agencies are licensed under Consumer Credit Act 1974. This protects the interests of the consumers. OFT can take action against these debt collectors, if their operations are unfair. Even their credit license can be seized.top
How to lodge a complaint against a collection agency in the UK?
You can report your situation to your local Trading Standards Officer, The Office of Fair Trading and OFCOM. Well, OFT has a complaint form where you can lodge your complaint against debt collectors in UK. You can get in touch with OFT with your complaints and queries at:
Call: 08457 22 44 99
E-mail: enquiries@oft.gsi/gov.uk
Address: Enquiries Centre
Office of Fair Trading
FREEPOST
London
EC4B 4AH top
How to stop debt collectors when the debt isn’t yours?
If you are being chased for a debt that is not yours, it may be a case of mis-trace. Mis-trace means that a debtor has changed his address without informing his creditors. In this situation, you should write to the agency or company. You can also ask the debt collector to check electoral register if you have your name on it. This will show that you are not the debtor. Once they get the notification they should stop chasing you.top
How to deal with debts that has not been acknowledged?
You can write a letter to creditor that the debts haven’t been acknowledged since 6 years. Under section 5 of the Limitation Act 1980, creditor has no right to take any action against you. It is important that you mention about the OFT rules that deems it unfair to pursue statute barred debts. Nevertheless, if you are pestered, you can complain to OFT.top
Are debt collection companies legit? How to find if the company is legitimate?
Debt collection agencies that are licensed by OFT under the Consumer Credit Act 1974 are legitimate.
If you want to know whether a debt collection agency is legitimate, call Consumer Direct to find out. You can reach Consumer Direct on a single national telephone number – 08454 040 05 06 – from 0800 – 1830 Monday to Friday, and 0900 – 1300 Saturday, excluding bank holidays and public holidays. Consumer Direct is available in England, Scotland and Wales. Consumers from Northern Ireland should contact ConsumerLine on 08456 00 62 62. For more information visit Consumer Direct website.top
Can you stop debt letters being posted to an address in UK?
If you want to stop debt letters being posted to you, you can consider The Mailing Preference Service in UK. You can request here that the mailing should be ceased to your address.top
What can debt collectors take?
Well, debt collectors cannot take anything or repossess goods unlike the bailiffs. For this a court judgment must be produced.top
What to do with letters from debt collectors that are not for you?
Never ignore these letters. Read them and react accordingly. If you find out that you have no debts then write to the debt collection company asking them to stop sending you any more letters.top
Should I sign a debt collector’s letter?
Once you sign a debt collector’s letter, it means you are agreeing to pay the claims they have made. It is essential to check whether you have debts, or have statute barred debts, legitimacy of the debt collection company etc. Before signing, you must get proper legal advice or else you will be chased by the debt collectors.top
How to prosecute debt collection agency?
When you receive a call or a letter from a debt collector, write back to them for the original credit agreement. They are legally obliged to send you a copy. If they do not and still contact you, report this to OFT. The OFT will take strict action and ensure that you are not harassed. Often the debt collection agencies loose their credit license.top
My daughter was unable to attend university in scotland because my husband lost his job. The accommodation section of the university are now threating debt collectors in order to recover €4000.00 accommodation fee. My daughter signed a contractor and I as her mother signed as guarantor. Can they sue us for this fee?
No, debt collectors cannot sue you without a court order.But since you are contract bound, the university can enforce legal action. You can discuss your financial problems with the Registry of the University or the Advice Center of the University. If you have a strong reason to back up your financial crisis, the University can consider your situation.
However if you are still being chased by the debt collectors in Scotland, you can lodge a complain against them as stated under the Protection from Harassment Act 1997 in Scotland.
You can reach out to Consumer Direct Scotland:http://www.consumerdirect.gov.uk/ or call 08454 04 05 06.
Thank you so much for your reply. I have since emailed the University outlining our financial situation and they have replied that they might be able to reduce the amount due to £2000 if they can get someone else to take up the accommodation for the second semester but that there are no guarantees that they will be able to find someone.I will even have to borrow in order to pay the £2000. Meantime, I have received a letter from a Debt Collection Agency in the UK stating that they have been appointed by the Uni requesting the full amount of £4000.00 and asking me to reply within 7 days of receipt of their letter. I want to wait until I find out if the Uni can definitely reduce the amount to £2000 & intend to contact them informing them of same and copying my letter to Debt Collectors. Do you think this is a fair approach to this problem?
Yes Mary this will be a fair approach. You can tell them about your negotiation with the University. If even after that Debt Collectors harass you or pester, you can always report it to OFT (Office of Fair Trading). You can even send a letter to the debt collectors asking them not to call you again and again. Do not forget to mention that you are aware of the OFT debt collection guidelines. You can report it at:
Enquiries Centre
Office of Fair Trading
FREEPOST
London
EC4B 4AH
Call: 08457 22 44 99
Email: enquiries@oft.gsi.gov.uk
Thank you for email.The Uni have emailed today stating that debt has been transferred to debt collectors and to deal with them and they had no further role to play in this. They ignored my comment about waiting until they confirmed that my daughter only owed the lesser amount of £2000.00. Do you think I am within my rights to wait until I get notification from the Uni about owing the reduced amount or do I have to contact the Debt Collection agency about this? Many thanks
Mary, has the University told you that they will be informing about the reduced debt amount? If yes, then you will have to wait till they let you know. If not, then contact your debt collectors and ask for the details of the debt amount. They are bound to give you all the information. If they refuse, you can always report it to OFT.
The University said that they would inform the debt collectors if they were able to reduce the amount to £2000 but meanwhile to chase us for the full amount of £4000.00. The debt collectors have emailed saying there is no dispute and could I contact them to make payment arrangements for the full amount at this time. I am worried that the University will just say that they havent been able to reduce the amount and I will end up paying £4000 which I am not able to do. Is there any way I can find out if another student has occupied the room my daughter was due to get thereby reducing the loss to the Uni?
Well Mary, if you are facing problems regarding this entire matter, let me tell you that in UK there is an organization OIA or The Office of the Independent Adjudicator For Higher Education. They provide free help to students who are facing problems while pursuing higher education. Since your matter has no court involvement you can get in touch with OIA and explain them your situation. They can help you to find out the information you are seeking. I have heard about OIA helping during similar cases.
Post:
OIA
Fifth Floor
Thames Tower
Station Road
Reading
RG1 1LX
Telephone
Enquiries Team: 0118 959 9813
(Calls to and from this Office may be monitored or recorded for quality control and training reasons.)
Fax
0118 955 9099
Email: enquiries@oiahe.org.uk
Visit their site: http://www.oiahe.org.uk/
Visit their section on How to Complain at: http://www.oiahe.org.uk/how-to-complain.asp
You can also find out whether the University has any Student’s Association. They can also help you to find out the relevant information.
In my honest opinion:
1. If you do not confirm your details to the “unknown caller” they are stuffed.
2. If you make it clear that “whatever” the issue is they must pursue in writing, and from this point onwards do not call contact me by telephone, if they still keep calling you then they will be on line for a harassment claim. (cause of action: harassment act)
3.Unless specified in the contract almost always, only the company who you entered the contract into with can sue you and NOT the debt collection agency as they have NO CAUSE OF ACTION to start legal proceedings, that includes their bluff of bailiffs. They make money out of your ignorance and fear.
4. If the debt is for just a few hundred pounds it is highly unlikely that you would be taken to court as they have to take you to county court under small claims track and it will cost them more than £500 to go that route and as they can not claim cost under small claims track they are generally stuffed. it is always worth disputing a debt upto £500 and taking the risk of going to court, worst case scenario is they win and you get ordered to pay. The court has to be reasonable so why not ask to pay say £5/week.
4. Never take a phone call from Debt collector as they will do their best to trap you into “an verbal agreement”. If they falsely claim that you have made an agreement first dispute it in writing and then ask for proof.
If people wanted to be really revengefull they could pay them in 1p instalments say 50×1p instalments one day, same the other. I wonder how much would it cost them if everyone was doing that I think it cost them 70p per instalment, I think they would go bankrupt.
Here’s a Question I need help with.
I e mailed a debt agency
I offered cash, if they sent me a payment slip. They ignored the offer but I was then sent a leter from a legal firm claiming I had not made an offer, they offered me 20% off the bill if I paid them within 10 days. Do they have to write off the cash if they ignored the first offer I made? I think the offer of all the monies owned in cash is reasonable, so why would they ignore it?
I have had 2 debt collection firms sending letters c/o addressed to me to my workplace.
Our MD opens all the post, my MD as said that these should not be sent to myworkplace and now he says if anymore are received then he will take displinary action against me.
what is the best way to go about complaining about these 2 companies
I have recently settled in full a parking ticket offence debt with Newlyn PLC – The debt was paid in installments ,but due to severe cashflow problems, it took longer than agreed, So on making my final payment to clear the £356 debt, I found an additional sum of £123 was added, (on my account, which I had notreceived any prior notification about. Can the company llegally do this?
David
Benefits of Credit Consumer Counseling Services Benefits of Credit Consumer Counseling Services by Radhia Gulam Before thinking that all hope is lost and you will have to consider filing for bankruptcy, why not take credit consumer counseling services? Credit consumer counseling has helped many ….
hello i will like to ask a question please a credit collector wrote to me to contact them then i called them and he satrted telling me to confirm my details i told him no because i dont know who they are and they might want to use my details for fraud. then i gave him some details and he asked me for my previsious address that i lived about 8 yrs ago. i told him no i will not give him that information because the question was getting to much he then said they have been tracying me for a debt. but my question is that if i dont know about any debt in my name from previous address 8yrs ago wat can i do. pls help thanks bye