There are lot of misconceptions surrounding the practice of Debt Collection. A debt collection agency is one that consists of agents and professionals who specialise in the field of retrieving debts for other individual or organisations. Though there are various laws that govern the functioning of these debt collection agencies, but sometime they do engage in and faulty practices to retrieve the money back from debtor.
Hence,every consumer who is either a money borrower or lender must be aware of laws that are legalised for debt collection so that he/she can prevent oneself from abusive practices. There are very stringent laws catering to debt collection in United Kingdom in order to protect its customers.
Who are Creditors?
The people you owe money from are called creditors. In case you do not end up paying their money back, they can take up legal action against you. But as per the laws of UK, creditors cannot indulge into harassment in the process of their debt collection. Any practice that is done with an intention to humiliate or threaten you is called harassment.
The following practices of debt collection are referred to as harassment as per UK Laws and therefore UK debt collectors cannot indulge into any of them:
- Contacting you repeatedly throughout the day along with posing you a threat of losing life and property is not ethical
- Any kind of physical or verbal threat
- Humiliating or mocking you publically to inculcate shame and guilt
- Causing you any physical damage
- Falsely claiming about a legal action to be taken against you
- Creating psychological pressure by sending in other people to talk about your debts.
What action can a creditor take?
A creditor can consider visiting a professional body for help or can even seek help and support of a lawyer. But make sure that you collect sufficient evidences before approaching any source. In case you had any prior debt agreement that would be the best document. In addition to this, look for people who can acts as witnesses such as your neighbours and relatives. Certain Non-Government organisations also help people who are constantly harassed by debt collectors, you can consider seeking help from the.
Always remember “An aware consumer is the best consumer!” Always be aware and ready to fight for your rights and against illegal practices.