Debt collection complaints: the Ombudsman and other routes

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Receiving an unexpected letter from a debt collector can be a shock. This can leave you with many questions. Where has the debt come from? Do I need to pay? Is the debt real? What if I can’t afford to pay?

But don’t worry, we can help you with answers to all these questions. In this guide, we’ll talk about:

How to make a complaint about debt collection agencies
The rules and complaint routes that apply to the type of debt.
How to check if the debt is real
How to handle it if you cannot afford to pay
How to get more help with your debts

Keep a record of the contact and explain any vulnerability or accessibility needs when raising a complaint.

So, read on to learn more about how to handle unexpected debt letters.

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Making Complaints

Complaining about a debt collection agency requires you to collect as much evidence as possible.

For some complaints, such as harassment complaints, this can be rather easy as you just need to download call logs to show how many times they have called and at what times. For other complaints, such as verbal threats or anything that is said on a call, this can be more difficult to gather evidence for, especially if you cannot record the call yourself.

However, you should write down the times and dates of these calls because if it gets investigated, the people looking into it may be able to access their call recordings and hear the calls for themselves.

Know Your Rights

It’s very important that you know your rights when dealing with debt collectors, as this can help you have an edge over the situation. Here’s a quick table summarizing what debt collectors can and can’t do.

Debt collectors may	Limits and protections
Contact you to seek payment	For regulated consumer credit, contact must be at reasonable times and respect reasonable requests about when, where and how you are contacted.
Ask to discuss the debt at a home visit	A collector has no bailiff powers, cannot force entry or take goods, and should leave when asked.
Explain possible court action	They must not mislead you about their powers or threaten action they cannot lawfully take.
Discuss an affordable repayment or settlement	Get agreed terms in writing and obtain free advice if you dispute the debt or cannot afford payments.
A creditor may seek a separate court enforcement order	A CCJ alone does not give a collector access to your bank account. A third-party debt order requires a separate court process.
A creditor may assign a debt	Check who owns it and who is authorised to collect; do not disclose payment details to an unverified caller.
Make proportionate follow-up contact	Harassment is prohibited. Requests about contact must be considered; necessary legal notices may still be sent.

Where Should I Direct It?

Complain first to the firm and keep its acknowledgement and response. Escalation depends on the complaint scheme’s eligibility and timescales, not simply whether the first reply is unsatisfactory.

Where Do I Take It Next?

The Financial Ombudsman Service can consider eligible complaints about regulated financial activities, including some debt collection. It is not the appeal body for every parking, utility, trade-debt or bailiff dispute. For most eligible complaints, a final response or expiry of the usual eight-week response period allows referral.

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What Details Do I Need to Provide?

When making a complaint to the Ombudsman about a collection company, you simply have to provide you version of events, any evidence you have and your personal details. If you have received a debt letter with a reference number on, they will need this reference too.

What Happens Next?

The service first checks whether it can consider the complaint, then assesses what is fair and reasonable in the circumstances, taking account of the relevant law, rules and guidance. It does not automatically accept every collection dispute.

Sometimes, investigations into a complaint can drag on many weeks, especially if you don’t have much evidence and they need to dig deeper.

A Decision and Appeal

Once the Ombudsman has gathered all the evidence and made a decision as to whether you have been treated correctly or not, they will inform you of their decision, usually by letter.

If you disagree with an investigator’s assessment, you or the business can ask for an ombudsman’s final decision. That is different from a general right to appeal a final ombudsman decision.

There is no ordinary merits appeal within the service after a final ombudsman decision. Acceptance by the consumer makes it binding; if you are considering court action or a legal challenge, get advice about the consequences and deadlines before accepting.

What Will It Achieve?

If an eligible complaint is upheld, the Ombudsman can require appropriate redress, which may include compensation or correcting account information. It does not fine firms or decide criminal guilt.

The FCA has separate regulatory powers. Multiple complaints do not automatically revoke a firm’s permission to operate.

General household-debt statistics do not establish misconduct or determine how a complaint will be decided.

How the introduction works

The Debt Advice Service can discuss your circumstances and explain available options, including their benefits, costs and risks.

Options depend on your circumstances. You decide whether to proceed.

Continue to the enquiry form

The Ombudsman Can Assist

Earlier we mentioned that the first complaint you make should be directed at the debt collection agency in question. If you do not feel confident at complaining to them or don’t know how to make your complaint, the Ombudsman can assist with this and guide you in the right direction.

Some UK debt charities will be able to help as well – for free!

Common Reasons

Harassment, misleading threats and inappropriate contact can justify a complaint. Explain your reasonable preferences and circumstances, but do not assume every contact outside a requested time is automatically unlawful. See related guidance, related guidance.

Whether conduct amounts to a criminal offence depends on the facts and legal test. A breach of a preference is not automatically criminal harassment.

But there are other reasons why you may choose to make a complaint about a debt collection agency, such as:

They improperly disclose your debt to an employer, relative or other third party; authorised or otherwise lawful disclosures need separate consideration.
They pretended to be bailiffs and said they can enter your home and/or could remove your possessions.
They keep trying to pressure you to make a payment.
They use technical jargon to try and confuse you and don’t offer to explain things in simple terms when asked.
They are abusive.

Ordinary collectors have no power to force entry or seize belongings. Workplace contact is not subject to a universal ban in every situation, but must comply with applicable privacy, contact and conduct rules.

Will It Wipe My Debts?

A successful conduct complaint does not automatically cancel a valid debt. The remedy depends on the error or misconduct; it may include changes to a balance where justified.

The Ombudsman may direct compensation or another remedy in an eligible case. The amount and form depend on its assessment, so do not assume a complaint will fund repayment.

About The Debt Advice Service

Use the enquiry form to request a call about your circumstances and available options. You decide whether to proceed.

Continue to the enquiry form

Checking for Other Debt Collectors

There are a lot of ways to get into debt. In fact, it’s not uncommon to owe money to several companies at once.

Perhaps you have a mortgage, a car loan, a couple credit cards and an item or two you bought on buy-now-pay-later schemes. It’s easy to lose track.

That’s why it’s important to regularly check your credit report and bank statements to make sure you haven’t missed anything.

A sold debt may appear under a new creditor name on your credit report, but not every debt or collector is reported to every credit reference agency.

Some of the debt collectors you’re most likely to come across are PRA Group, Lowell and Cabot Financial.

Get Further Debt Support at MoneyNerd!

Dealing with debts can make you feel isolated and cause severe mental health problems. But every debtor should know that there are lots of options to get out of debt. The Money Nerd website is packed with easy-to-understand information for the everyday person struggling with debt.

Use the debt-solutions guidance to compare options, eligibility and consequences with a free independent adviser.