Useful info: how to survive debt collecting agencies/creditors and what to do

Merlinexcalibur

Greetings.

Just thought I'd pass on this useful info, as I couldn't see it listed anywhere in the DWF zone. It's the stuff creditors/debt collection agencies really hate you knowing! (joke) But you are perfectly entitled to use it when things get tough to protect yourself from 'irregularities'. Firstly, here is the link to the OFT guidelines, which contains a lot of useful info about harassment, fair collection procedures and basically 'what can they/can't they do'. And is useful for anyone to refer back to when dealing with an awkward situation, doesn't know how to react or respond. It is there to protect people, so why not use it? You are doing nothing wrong. Whatsoever.

So I thought it was like a 'survival guide' for anyone new to this and anyone else who may not yet know such things exist. The Protection from Harasment Act also covers internet forums as I have noted in the last year on several consumer forums that it's not uncommon for creditors to harass people through them.

The actual document is too long, so I will post the link:

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

This may be an outdated edition as it covers up to 2006 but I couldn't find an updated version but if one is available maybe someone will point you to it.

Remember, these are the guidelines that a creditor/collection agency must adhere to when dealing with a debtor. And also remember that, despite what anyone else may tell you eg employee of a debt collector or creditor, you ARE within your rights to use these guidelines and also quote the relevent sections back in writing or by phone.

This next section is from the Insolvency Helpline site on Harassment of People in Debt by Creditors (please pay careful attention to the sections on harassing debtors using neighbours):

Section 40 of the Administration of Justice Act

“S40 Punishment for unlawful harassment of debtors.

1. A person commits an offence if, with the object of coercing another person to pay money claimed from the other as a debt due under a contract he-
   • harasses the other with demands for payment which, in respect of their frequency, or the manner or occasion of making any such demand, or of any threat or publicity by which any demand is accompanied, are calculated to subject him or members of his family or household to alarm, distress or humiliation;
   • falsely represents, in relation to the money claimed, that criminal proceedings lie for failure to pay it;
   • falsely represents himself to be authorised in some official capacity to claim or enforce payment; or
   • utters a document falsely represented by him to have some official character, or purporting to have some official character which he know it has not.
2. A person may be guilty of an offence by virtue of sub-section (1) (a) above if he concerts with others in the taking of such actions as is described in that paragraph, notwithstanding that his own course of conduct does not by itself amount to harassment.”

Office of Fair Trading Code of Guidance

Many activities could count as harassment. It is important to note that “anything done by a person which is reasonable” when trying to recover a debt, is not considered to be harassment. Both the Office of Fair Trading and Trade Associations (run by the credit industry) have produced guidance on what activities may be considered harassment and should therefore be avoided by creditors. The following list is taken from the new Debt Collection Guidance for holders of consumer credit licences.
Creditors are warned by the Office of Fair Trading under the Debt Collection Guidance that the following practices are "considered unfair":

“IT IS UNFAIR TO COMMUNICATE, IN WHATEVER FORM, WITH CONSUMERS IN AN UNCLEAR, INACCURATE OR MISLEADING MANNER.”

This includes:

• Letters that look like court claims
• Not making it clear who the company is or what their role is
• Unhelpful legal language
• Not giving balance statements about the debt when asked
• Contacting you at unreasonable times even when asked not to
• Asking you to contact them on premium rate phone numbers.

“ THOSE CONTACTING DEBTORS MUST NOT BE DECEITFUL BY MISREPRESENTING THEIR AUTHORITY AND/OR THE CORRECT LEGAL POSITION.”

This includes:

• Claiming to work for the court or be a bailiff
• Implying action can be taken that is not legally possible such as implying they could take your property
• Using a business name or logo that implies they are a government body
• Implying that court action has been taken against you when it hasn’t
• Implying not paying your debt is a criminal offence
• Threatening to take court action in England if you live in Scotland or the other way round.

“ PUTTING PRESSURE ON DEBTORS OR THIRD PARTIES IS CONSIDERED TO BE OPPRESSIVE.”

This includes:

• Contacting you too frequently
• Pressurising you to sell property or take out more debt
• Using more than one collection company at the same time or not telling you when your debt has been passed to another company
• Pressurising you to pay in full or in large instalments you cannot afford
• Making threatening gestures or statements
• Ignoring disputes about whether you owe the money
• Trying to embarrass you in public or threatening to tell a third party about your debts such as a neighbour or your family.

“ DEALINGS WITH DEBTORS ARE NOT TO BE DECEITFUL AND/OR UNFAIR.”

Examples include:

• Sending letters addressed to “the occupier” or discussing the debt with someone without knowing if they are you
• Refusing to deal with an adviser acting on your behalf
• Not accepting reasonable offers or passing on payments you make
• Refusing to freeze action if you dispute the debt.

“ CHARGES SHOULD NOT BE LEVIED UNFAIRLY”.

Examples include:

• Claiming collection costs when the original credit agreement didn’t allow this to happen and making you think you are legally liable for the costs
• Not putting the specific amounts that can be added for collection costs in the original credit agreement
• Adding unreasonable charges.

“ THOSE VISITING DEBTORS MUST NOT ACT IN AN UNCLEAR OR THREATENING MANNER.”

• Collectors should explain the reason for any visit and give you notice of the time and date they will call
• They shouldn’t visit if they know you are ill or vulnerable and if they find you are unwell or distressed they should leave
• They should not come in if you do not want them to and should leave when you ask them to
• They shouldn’t visit you at work or somewhere like a hospital.

And what do when you think a creditor is harassing you in the above manner:

How to deal with harassment by your creditors

• The first step is to write to a creditor and outline your concerns about the company’s behaviour. Inform them that you are familiar with the terms of Section 40 of the Administration of Justice Act and ask that the creditor takes steps to avoid similar occurrences in the future. Tell your creditors how you would prefer to be contacted and ask that they confirm their agreement to this. A letter at this stage may avoid the need to take further action against the company.
• Tell them you are aware of the OFT Debt Collection Guidance and that you will consider making a complaint about their behaviour under the guidance.
• It is usually difficult to persuade the police to prosecute in cases of harassment unless a more serious offence such as violence, fraud or blackmail is also involved. Normally complaints should be made to the trading standards/consumer protection department at your local council. They should investigate whether an offence has been committed and whether prosecution is appropriate. The penalty is a fine of up to £5,000 in the Magistrates Court. Also a conviction is likely to provide evidence that the creditor is no longer a ‘fit and proper person’ to hold a consumer credit licence.
• If Trading Standards will not act it may be worth contacting the Office of Fair Trading directly. The address is at the end of the factsheet. The OFT does not usually take up individual complaints but their Debt Collection Enforcement Team collects information that can be used to take action against creditors who can lose their consumer credit licence.
• The creditor may be a member of a trade association with a code of practice. You could find out if your creditor is a member of a trade association and write to them with your complaint. A code of practice is not legally enforceable but the association may take some action against their members.
  

OTHER OPTIONS

• Another alternative is for you to pursue your own prosecution in the Magistrates Court. This could involve considerable cost so you need to obtain proper legal advice first.
• BT have a new service called "Choose to Refuse" which might help if you are getting a lot of calls from an unpleasant creditor. You have to key in a pin number after a call. The caller will then get an automated message if you don’t wish to take their call when they ring. The cost of the service is £8.00 per quarter.
• If you receive a telephone service from another provider, contact them and ask if they have a similar service.
• You could refer to the Malicious Communications Act 1988. This deals with the sending of letters or articles for the purpose of causing “distress or anxiety”. A person found guilty can be fined in the Magistrates Court. To prosecute successfully, the letter or article sent would have to convey:-
  • A message which is indecent or grossly offensive
  • A threat; or
  • Information which is false and known or believed to be false by the sender.
• The Criminal Justice Act & Public Order Act 1994 Section 4a makes it a criminal offence to cause “Harassment, alarm or distress” with intent by using “threatening, abusive or insulting words or behaviour”. This can only be an offence if it happens in a public place not in your own home. The police would need to be contacted and prosecute for this offence.
• The Protection from Harassment Act 1997 makes it a criminal offence to harass people and put “people in fear of violence”. The harassment must happen on at least 2 separate occasions. The police would have to agree to prosecute for this offence.

Lastly, this website is full of a raft of useful helpsheets, advice so here's the link:

http://www.insolvencyhelpline.co.uk/debt_factsheets/harassment_of_people_in_debt_by_creditors.php

Please be fully aware that all the above is available for your protection from 'ambigious' debt collection and you are allowed to use these things at any point during your period of debt if/when you feel something untoward is occuring as defined above. Interpretation will, of course vary, but that usually happens when a creditor interprets what IT thinks is acceptable and 'company policy' which isn't always within what the law actually says on dealing with debtors.

So, I hope some of you who haven't already found these tools above will find some of it useful. You have rights, please use them to protect yourself.

Merlinexcalibur

Well, it's here for anyone who may find it useful anyway. It's what they were written for.

Oh, before I forget after last night's antics but I am not here to be popular, get votes etc ... but to encourage people to assert their rights. Exactly like it says on the tin of MSE!

Numpty_Monkey

Thank you Merlin

Merlinexcalibur

Unsurprisingly, I find this fallen several pages down. What I love sometimes ... you do things, try to help people ... and give them information you'd think would benefit or they'd be interested in using. Find useful, anyone could swear you don't want to protect yourselves in the UK. Strange. Oh, well.

Merlinexcalibur

Whilst reminded of this but debt collection agency employees often also go on forums asking you to either go on a chat site or PM them so nothing they say is then public. It happened on another consumer forum, and is not just solely exclusive to them. This is not scaremongering but fact. Because it happens.

DebtFree2015_3

Great Advice

Bump Bump!!

mysuni

thanks for that.

i have been paying cc companies instead of mortgage as they phone me at work chasing payments and if i don't answer the phone they speak to others in the office saying they need to speak to me urgently and could they have my home number (which they already have) they are phoning from mbna. they then turn around and say is there a problem as these people are persistent and keep calling for you. cccs told me that i can ask for all phone numbers to be deleted from their files and ask that they only contact me by letter. they said that was under the data protection act.

kimdegsidash

Thanks merlin - can this become a sticky?

Deep_In_Debt

Yep, thanks for this merlin - I'm kind of expert in dealing with some of the nastiest DCA's which, a year or so ago, before finding this forum and various others, I would be a nervous wreck by now! DCA's are now reasonably nice (for a DCA) to me now as they know I have the upper hand - not one of them so far has supplied me with an enforceable CCA but I'm still paying them and I remind them of that every so often and they go away and leave me alone for 6 months.

This is useful info tho and well worth bumping which I'm doing...

fatbelly

Please note 'The Insolvency Helpline' is NOT the helpline of The Insolvency Service.

It is an independent firm of IVA sellers that exploits its official-sounding title. It has been known to give misleading advice in the past.

I'm not saying that any of its advice 'cut and pasted' here is wrong but as it appears to have come from old versions of National Debtline factsheets, I would recommend that people check advice against the latest versions on

http://www.nationaldebtline.co.uk/

suewiththeblues

thanks for this - like you say it takes a matter of seconds before useful posts are swamped and they become hard to find. my head is currently swimming trying to keep the wolves, and the dca's, from the door so its a great help to me to have something where all the correct info is in the one place :beer: