Yesterday we published an article titled “How to stop Debt Collectors“. Today we are ready to show you an example that if you act according to the rules, you can change a lot of things.
There is no doubt that debt collectors try different unfair tactics to recover money. They even talk to the neighbours of the debtor while chasing him or her. Recently some similar cases have been reported against a company and the OFT has said that this is an unacceptable practice and it will take enforcement action against the collection agencies if it continues. The company in question has changed their collection policy accordingly.
It is also reported that the debt collectors are asking the neighbours to pass messages to the borrower. Nigel Cates, OFT Deputy Director for Consumer Credit, said, “…Using neighbours to pass on messages to trace subjects is an unacceptable practice that contravenes our debt collection guidance”. He also added that if such practices continue they will not hesitate to use their “licensing and enforcement powers”.
The Office of Fair Trading has clearly implemented some debt collection guidance in 2003 (updated December 2006) to protect the debtors from unfair business practices:
- Communication – The debt collector should not use any abusive language or methods to communicate with the debtors
- False representation of authority or legal position – The debt collectors cannot use any false or look a like government identity or logos to frighten debtors.
- Physical or psychological harassment – Violence or abusive methods are unacceptable. The debt collectors cannot come knocking at the debtor’s door anytime they wish. They should not compel the borrowers to sell their property or borrow further. Threatening statements cannot be used while negotiating with the debtor.
- Deceptive and unfair methods – Using deception such as calling up individuals who do not owe any debt to any lender is considered an unfair practice. The debt collector cannot force an individual to prove that he is not the person in question.
- Charging for debt collection – Unfair charges should not be levied on the debtors. A debt collector cannot charge a debtor if there is no contractual provision. The debt collector must clarify everything about the charges before proceeding with the case.
- Debt collection visit – A debt collector cannot visit borrower if he is psychologically or physically ill. The debt collector should provide adequate notice to the debtor before visiting his or her place. Visiting the debtor at work or at hospital is considered as an unacceptable practice.
If you are facing such problems, seek help from the Citizens Advice Bureau or the council’s trading standard department. We will also request you to let us know if you are in such a situation or how you are fighting against them.
Valuable info here and if you discover yourself a similar position there are a number of strategies you can employ to manage your credit card accounts effectively. If you are going to open up a single credit card bank account, you will potential would like to generate sure that you have a Visa or a MasterCard. These cards are accepted by a large amount retailers, whereas other cards similar to American Express or Find may not be.
Hi there. I have been reading a number of your articles with great interest and I am very please with the level of information you have provided. It is a horrible situation to be in but a one that most people will find themselves in at least once in their lifetime.
I worked in Dubai for over 12 months and like most expats living the dream in the middle east, we tend to live slightly above our means. Due to the credit crunch, I’m sure you’re aware, Dubai come to a stand still and I was forced to abandon ship and return to home. I left Dubai with just under 20k worth of debt which I had used to settle all my old UK debts, kept me going for the following 3 months out of work and funded many a drunken night on the party scene in Dubai!
I made contact with one out of the 2 banks I had the outstanding debts which are in fact credit cards and agreed a settlement figure. I payed the first half of the amount to them on the promise I would follow the second amount the following month. Unfortunately, I am again out of work and I am reluctant to send them over 5k when I am out of work. I advised that once I am working again and I know I have an income I will have no problems in settling the outstanding.
The next piece of correspondence I received was from a UK debt collector, sent to my mothers house demanding the 5k with no regards to what I had discussed with the bank.
What rights/power does a UK based debt collecting agency have over me regarding credit cards I have in Dubai? I have advised them that I am dealing with the bank direct and I do not want any dialogue with the agency but do I have any say on this? The interesting thing is, I do not even live in the UK only my parents do so does the agency have any rights in contacting them?
Your help would be greatly appreciated,
Michael
There are a few things that need attention. First, did the debt collectors send you a history of your account? You certainly have the right to ask them for the same since they are making such claims. Just a letter from an agency stating any arbitrary amount of debt or loans cannot be produced against you by some debt collectors, unless backed up by some evidential record.
Thanks for helping me to see things in a dffiernet light.
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