The practise of obtaining money that is due to someone is called debt collection. The Consumer Credit Act of 2006 governs the collection of debts in the UK. This law lays out the guidelines that debt collectors must adhere to, including the ways in which they can get in touch with debtors and the fees they are permitted to demand.
In the UK, there are primarily two kinds of debt collection agencies:
Debt collection companies owned by the creditor are referred to as in-house companies. Creditors frequently utilise them to collect debts that are challenging to collect on their own.
Debt collection firms that are not owned by the creditor are known as third-party firms. Creditors use them to collect debts on their behalf.
In the UK, debt collectors have access to a wide range of techniques, such as:
Debtors may get phone calls from debt collectors. They can phone up to 20 times each week, but they can’t be threatening or abusive.
Letters: Debtors may get letters from debt collectors. The debt amount and the repercussions of not paying must be stated in these letters, which also need to be clear and succinct.
Email: Debtors may get emails from debt collectors. They must send emails that are comparable to the letters they send.
Debtors’ homes can be visited by debt collectors. However, they must avoid visiting at odd hours or in a manner that might scare or upset others.
Legal action: A debt collector may file a lawsuit if a debtor refuses to pay their debt. This can entail serving the debtor with a County Court Judgement (CCJ) or bringing them to court.
It’s critical to be aware of your rights if a debt collector contacts you. You are entitled to:
be given fair and respectful treatment.
get details on the loan, such as the total amount owing and the interest rate.
If you think the debt is not yours, challenge it.
with the debt collector to work up a payment schedule.
enlist the aid of a debt counselling agency.
There are several options available to you if you are having trouble paying debt collection in UK:
Inform the creditor of your circumstance by contacting them.
Request a payment schedule from the creditor.
For assistance, speak to a debt counselling agency.
You should notify the Financial Conduct Authority (FCA) if a debt collector is harassing you. The UK’s financial regulator, the FCA, has the authority to penalise debt collectors that violate the law.