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Your Rights When Dealing with Debt Collectors in the UK

Debt collection is the process of retrieving money owed to another person. The Consumer Credit Act 2006 governs debt collection in the United Kingdom. This statute establishes the standards that debt collectors must follow, such as how they can contact debtors and how much they can charge.

In the United Kingdom, there are two categories of debt collecting agencies:

In-house debt collection agencies: Debt collection agencies that are owned and operated by the creditor. Creditors frequently utilise them to collect debts that are difficult to collect on their own.

Third-party debt collectors: These are debt collectors who are not owned by the creditor. Creditors engage them to collect debts on their behalf.

Click here for more information on debt collection in UK.

Debt collectors in the United Kingdom can collect debts using a variety of ways, including:

Debtors can be contacted via phone by debt collectors. They can make up to 20 calls each week, but they can’t be aggressive or threatening.

Debt collectors may send letters to debtors. These letters must be precise and straightforward, stating the amount owed as well as the penalties of failure to pay.

Emails: Debt collectors have the ability to send emails to debtors. These emails must be comparable to the letters they write.

Debtors’ homes can be visited by debt collectors. They must not, however, visit at inconvenient hours or in a manner that is likely to create anxiety or distress.

Legal action: If a debtor fails to pay their obligation, the debt collector may file a lawsuit. This might include serving the debtor with a County Court Judgement (CCJ) or taking the debtor to court.

If you are approached by a debt collector, it is critical that you understand your rights. You have the legal right to:

Be treated fairly and with respect.

Receive details about the debt, such as the amount outstanding and the interest rate.

If you suspect the debt is not yours, file a dispute.

Make a payment arrangement with the debt collector.

Seek assistance from a debt counselling agency.

If you are having difficulty repaying a loan, you have many options:

Inform your creditor of your predicament.

Request a payment plan with your creditor.

For assistance, contact a debt counselling agency.

If a debt collector is harassing you, you should report them to the Financial Conduct Authority (FCA). The FCA is the UK’s financial regulator, and it has the authority to prosecute debt collectors who violate the law.