Debt collectors in Scotland: home visits and your rights

Are you worried about a letter from a debt collector in Scotland? Don’t worry; you’re in the right place. This article will help you understand:

• Who debt collectors are and their powers.
• How to handle a visit from a debt collector.
• Ways to lessen your debt quickly.
• How sheriff officers differ from ordinary debt collectors
• When Scottish prescription rules may apply to an older debt

We know it’s hard when you’re not sure about the debt or if you can pay. Over 170,000 people come to us each month for advice on their debt problems, and we’re here to guide you through yours.

Our team knows how this feels, as some of us have had debt collectors at our door, too. We get why it can be scary, but we’re here to help you understand and handle the situation better.

This article will help you learn more about debt collectors in Scotland and what to do if one comes to your house. Let’s get started.

What is a collection agency?

If a creditor has been unsuccessful in receiving payment for any outstanding accounts, they will use a debt collection agency to get a payment. 

Sometimes, the debt will be sold to the agencies, and you will need to pay the debt collection agency instead of the company you borrowed from. 

Can they visit your home?

Aside from sending letters and making phone calls to your home, debt collectors in Scotland can visit your home. Usually, the first contact you will receive is a letter that introduces the debt collection company. 

Often they will have local offices, so you may notice a Scotland-based address there. 

They should also outline how much you owe and the company that you borrowed from in the first place. Sending letters and calling are two of the lost cost options that debt collectors in Scotland have for making contact. 

A visit is not an automatic next step, and collection fees need a lawful basis. Ask for an explanation of any added amount.

For regulated consumer-credit recovery, visits and contact must comply with the relevant FCA rules and take account of your circumstances. A proposed visit should not be treated as proof that the collector can enter or seize goods.

Can they take my goods from my property?

An ordinary debt collector cannot take your goods. In Scotland, sheriff officers carry out authorised enforcement, known as diligence; their powers depend on the order and procedure.

English and Welsh bailiff rules and CCJs should not be applied directly to Scotland. Sheriff officers can enforce decrees and other authorised debts under Scottish rules. See related guidance.

Taking non-essential goods from inside a home generally requires the specific exceptional-attachment procedure. Essential goods and other statutory protections apply.

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What powers do they have?

FCA authorisation requirements depend on the activity and debt, including regulated consumer-credit collection. Not every debt-collection activity falls within the same regulatory scope.

Ordinary collectors can request payment but cannot exercise sheriff-officer powers. A creditor or debt owner with legal standing may still seek a court decree; it is wrong to say there is no legal recourse.

Here is what debt collectors in Scotland can do: 

• Send emails
• Call your home phone or your mobile phone
• Write letters to your home
• Visit your home to arrange payments

Debt collectors in Scotland cannot: 

• Take your property to cover the amount of the debt
• Enter your home without permission
• Force you to open the door
• Hide their ID
• Harass you or disclose your debt publicly through social media
• Use unreasonable or excessive contact without regard to your circumstances
• Use inappropriate workplace contact that risks disclosing your financial affairs
• Speak with friends or family about your debts
• Misrepresent themselves as sheriff officers or claim powers they do not have
• Threaten unlawful action or mislead you about the consequences

Scottish debt collectors have a lot of restrictions that are put in place for the protection of the people who are in debt. 

What can I do when they come to my door?

Always remember that you don’t have to open the door to a debt collector, so if you don’t feel comfortable, just wait until they leave. While you should take action to deal with the contact, the in-person visit can be intimidating and upsetting for many people. 

You can write to the debt collection company and request that they limit their communications to give you some breathing space. 

Verify who is authorised to receive payment and obtain a receipt or written record. Paying the original creditor is not always appropriate after a debt has been sold.

Do not agree to payments that leave essential costs unaffordable. Ask for time to obtain advice and explain your circumstances.

Avoid signing anything if you can, and seek advice from one of these places: Charity Debt Advice – Top Debt Charities Reviewed. 

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Which Scottish debt options may help?

IVAs are not available as a Scottish insolvency procedure. A Scottish money adviser can compare the Debt Arrangement Scheme, protected trust deeds, sequestration and informal arrangements.

A statutory moratorium may give temporary protection from specified diligence while an eligible Scottish debt solution is considered. It is not a general injunction stopping every action or communication. See related guidance.

Protection and exclusions depend on the particular solution and debt. Ask an adviser urgently if sheriff officers have served documents or enforcement is imminent.

Suitability depends on income, assets, debts, fees and risks. A protected trust deed is one option, not a compulsory substitute for an IVA.

How can I quickly lower my debts?

Paying down your debts is one way to tackle them, but some options could be a large portion of your debts written off. I have a handy guide that you can use to help: How Does Debt Write-Off Work? 2022 Guide. 

Can an older Scottish debt still be recovered?

Many ordinary Scottish debts can be extinguished by five-year prescription if the legal conditions are met. Age alone is not enough: the start date, relevant claims and acknowledgements, and type of obligation matter.

An adviser should check matters including:

• Whether a decree or another relevant legal claim affects the obligation
• Whether a payment or other legally relevant acknowledgement occurred during the period
• The date the obligation became enforceable and any applicable special rules
• Whether the particular obligation falls within five-year prescription or an exception

Other debts and secured rights can follow different rules:

• Mortgage-related liabilities: distinguish the personal debt, interest and the security over property
• Council tax and benefit overpayments: obtain advice on the particular statutory obligation
• Tax liabilities: do not assume the ordinary five-year rule applies
• Court decrees and other long-prescription obligations: check their separate rules

Do not ignore court papers even if you think a debt is prescribed. Ask an adviser to check the position before making a payment or admission.

What are some of the most common agencies? 

I am being pressured

There is some code of conduct rules that debt collectors must adhere to. If you feel threatened, harassed, or they are unreasonably contacting you, here are a couple of things to do. 

• Send a letter requesting reduced contact (recorded delivery and keep a copy of the letter)
• Keep a log of all communication – collect evidence of harassment
• Complain directly to the creditor.

Trade-body membership is not universal. The relevant legal, regulatory and complaints rules depend on the firm and activity; complain to the collector and creditor with evidence.

The Financial Ombudsman may consider an eligible complaint within its remit after the business’s response or the applicable waiting period. Sheriff-officer complaints and non-regulated debts can require different routes. See related guidance.

There are many different options for dealing with debt, get the low down here: Debt Solutions.