Your Rights with Debt Collectors: A Simple Breakdown

Having a debt collector contact you can be terrifying, and you may feel overwhelmed in this situation. It may feel better to hide away from the letters and phone calls, but the more you ignore a debt collector, the more insistent they will become – until you get a visit at your front door.

We understand the fear involved in this situation, and because of this, it is important to know exactly what debt collectors can and cannot do when chasing you for a debt.

In this article, we will cover:

• What debt collectors can do.
• What debt collectors are not allowed to do.
• What should you do if a debt collector crosses the line?
• A step-by-step guide to submitting a debt collector complaint.

What are their rights?

We have compiled a list of all of the things debt collectors can and cannot do when they approach you at your home:

Initial Contact:

Debt Collection Agencies have permission to contact you by phone or letter, and they may use this method frequently. However, they should call you within reasonable hours. This means that all contact should stop after 9 pm and only begin again once it reaches 8 am the next morning. They should also stop contacting you so frequently once you reply to them, asking them to limit their correspondence.

Debt Collector Visits:

Debt Collectors are allowed to visit you at your home. Again, this must be at a reasonable time, and they have permission to knock on your door. However, they cannot force entry into your home. If they attempt to access your home and threaten to take your possessions, you are within your rights to submit a complaint.

Additionally, they cannot visit your workplace or talk to anyone else about your debt – they must only communicate with you. However, they may threaten to take you to court if you do not wish to communicate with them and ignore their further payment enquiries.

This could either end up with them suing you for payment on a debt, or it may even result in them gaining access to your bank account and negotiating payments that way.

The best thing to do is either pay the debt (if possible) and get a receipt for it or arrange a settlement offer with the debt collector. They may be amenable to a settlement, especially if it seems that it is the only way they will get a payment – but you must always ensure you get a receipt of this, too. This will act as evidence if further enquiries from the agency occur, asking why you haven’t paid in full.

If the debt collection agency doesn’t think they will get any money from you whatsoever, they may sell your debt to someone else.

What should you do if the debt collector crosses the line? 

If you believe that a debt collector is harassing you and breaking the laws set out for them, it is crucial that you report them. 

Reporting debt collector harassment can be terrifying, especially when you don’t know if they are truly in the wrong. However, so many people in the UK will be in this same situation, and it is important to know when you are being treated unfairly and stand up for yourself.

The process of making a debt collector harassment complaint can be split into three stages:

1. Gather evidence of harassment.
2. Make a complaint to the creditor/debt collection company.
3. Make a complaint to governing bodies and others.

Step One: Gather Evidence 

The first thing you should do is gather all the evidence you can to prove that a debt collector has harassed you.

To do this, you should:

• Download call logs showing creditors have frequently called you, particularly when you asked them not to or outside their usual working hours.
• Gather witness statements.
• Collect photos or video evidence that they have frequently come to your home.

Step Two: Send Evidence to Collection Agency

Send copies of this evidence to either the debt collection agency or your creditor. Explain exactly why they are guilty of debt collector harassment, and use your evidence to back this up. 

You are well within your rights to ask them to stop, and you may also make specific requests about how you would prefer to be contacted in the future.

At this stage, it is hoped that any debt collector harassment will stop. But if it doesn’t, you should proceed to step three…

Step Three: Send Evidence to the FOS/FCA

If the debt collection agency doesn’t react to your direct complaint within three business days, you can complain about the harassment to the Financial Ombudsman Service.

The ombudsman may choose to investigate the matter further and apply fines against the company.

You should also report them to any governing trade bodies that the company belongs to, as well as the Financial Conduct Authority (FCA).

The official complaints procedures for each can be found on their website. It is crucial to keep all of the evidence you have collected (particularly original copies of any paper evidence) in case you need to complain to these groups.

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What should you not say to debt collectors?

You shouldn’t give any personal details, including your name or bank account information, to debt collectors until they prove that they are who they say they are. This includes them showing you their ID and the ‘warrant’ to visit your home. 

What should you ask a debt collector when they are at your door?

You should ask who they are collecting the debt for and what the debt is in reference to. You may request a full breakdown on paper through your letterbox or through an open window – you do not have to open the door for them. 

How long can a debt be chased for?

While there isn’t a set timeline for how long a debt can truly be chased for, all evidence of the debt will be cleared from your credit report after 6 years. This is for most debts, including: credit card debt, overdrafts, personal loans, and council tax arrears. However, your credit score will be severely impacted by not paying the debt off over the 6 years which will impact your ability to get any type of loan in the future. 

Is it okay to ignore a debt collector?

It is never advisable to ignore a debt collector. If you don’t believe the debt belongs to you, write to the company and inform them of this as soon as possible. If the debt is yours, it is understandably scary when contacted by a debt collection agency, but you should still respond by phone or mail. If you don’t, they are likely to send someone round or take you to court to get payment.

References:

• Financial Ombudsman: https://www.financial-ombudsman.org.uk/consumers/how-to-complain
• Financial Conduct Authority: https://www.fca.org.uk/
• https://www.stepchange.org/debt-info/debt-collection/home-visits-from-debt-collectors.aspx