There are recognized guidelines set out to consider unreasonable debt collection behaviors of collection agencies and creditors. Laws are also designed to cover debtor’s harassment by creditors. Some guidelines and regulations are:
Administration of Justice Act 1970:
According to this law, collecting money from debtors causing distress, alarm or humiliation is a criminal offence even the act is performing by collection agencies or creditors. Creditor is also committing an offence if he is falsely making nonpayment of debts as criminal offence. If creditor is pretending as a law person like bailiff or court official which he is exactly not then also it will be considered as criminal offence.
Harassment Act 1997
If you find that your creditors are taking unlawful actions to collect money from you then you must know that your creditor is making a criminal offence. Harassment can be in form of writing or verbal. If creditors are continue making you calls at your work place or non social hours then it will be counted as criminal offence. The protection from harassment act 1997 making it a criminal offence and you can take legal help in this context.
Guidelines on data collection:
OFT or the office of fair trading has designed a set of debt management and debt collection guidelines for any kind of loans like debt consolidation, payday loans, credit card etc. It describes about the types of debt collection practices and practices which are unfair. Guidelines are not applicable on routine debt collection. It is made for missing payments, default and arrears. Here some time are mentioned where creditors cannot make a call for debt collection. However, it is not describing suitable time for calling.
Contact creditor who is harassing you:
If you think that your creditor in unlawfully making calls or contacting you for collections then you can report for this. You can take help of debt management companies for appropriate guidelines on this. Before doing this be sure that you have proper evidences. Keep a record of calls and visits from collection agency along with the time and duration of meeting. You should also keep safe the threatening letters. Contact your creditor about your problems and also negotiate for your preferable time. If situation doesn’t get improved then you may move forward to make formal complaints against your creditor.
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Robin Smith is a debt advisor. He shares helpful information through his post on debt consolidation.
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