What Rights Do Debt Collectors Have?
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
Are you concerned about a letter from a debt collector? Don’t worry; you’re not alone. Every month, over 170,000 people visit our website for help with debt problems.
Here’s what you’ll learn in this article:
- How to find out if the debt is really yours. If it’s not, you don’t have to pay!
- If you can say ‘no’ to the debt collector or just ignore them.
- How to make the debt collector stop bothering you too much.
- Ways to set up a plan to pay the money back, or even get some of the debt written off.
Our team knows how scary it can be when debt collectors are after you: some of us have been in the same situation. That’s why we’ve created this guide that will help you learn more about your rights and how to deal with debt collectors under 2023 UK laws.
What Rights Does a Debt Collector Have?
What Rights Does the Consumer Credit Act Give Me?
The Consumer Credit Act is a piece of legislation that sets out most commercial lending in England and Wales. It lays out some strict rules which dictates what creditors must do when lending or collecting money.
The debts that the Consumer Credit Act covers are called regulated debts and include:
- Store cards
- Credit cards
- Store finance
- Personal loans
- Payday loans
- Hire purchase
Keep in mind that there is an upper limit on the debts taken out before 2008 that are covered by the Consumer Credit Act in the tens of thousands of pounds.
Regulated debts are offered more protections than unregulated debts, generally meaning that your creditor has to follow a strict procedure to chase or collect your debts.
If you would like more information, several debt charities have detailed information about the Consumer Credit Act and will be able to give you an informed understanding of your debts and options. I have linked some charities at the bottom of this page.
How a debt solution could help
Some debt solutions can:
- Stop nasty calls from creditors
- Freeze interest and charges
- Reduce your monthly payments
A few debt solutions can even result in writing off some of your debt.
Here’s an example:
Monthly debt repayments
£429 reduction in monthly payments
If you want to learn what debt solutions are available to you, click the button below to get started.
Harassment by Debt Collectors and Creditors
What Should I Do if a Debt Collector Does Something That They Do Not Have the Right to Do?
» TAKE ACTION NOW: Fill out the short debt form
How Do I Report Unethical Behaviour?
Reporting the unethical behaviour of debt collectors is important – it will help prevent this from happening to you or any other customers again.
If you think that your debt collection company has been unreasonable or behaved inappropriately, you can make a complaint. You can also make a complaint if you feel that they have broken any of the Financial Conduct Authority’s (FCA) guidelines.
Make your first complaint to the debt collection company directly so that they have the chance to sort out the issue themselves. If you feel that they have not taken your complaint seriously enough or have not addressed your issue properly, you can escalate matters.
You can make any secondary complaint to the Financial Ombudsman Service (FOS). They will investigate and, if your complaint is upheld, the debt collection company may be fined. You could even be owed compensation.