Harassment by creditors - StepChange Step Change

Contacting you several times via phone or SMS, like a stalker, can be classed as harassment. Even though there is no set limit to the number of calls made or texts that can be sent in a day, you can still raise a complaint if you believe it’s excessive. Different people have different thresholds, so what might be a reasonable amount for one person may be excessive for another.

Contacting you in the early hours of the morning or late at night can be considered harassment. No one wants a 5 a.m. wake-up call on Sunday morning after a night out (assuming you’re home by then). There’s no actual law that states they cannot do this, but the Financial Ombudsman can consider it harassment.

As a guide, we tend to use the example of bailiff’s permitted working hours, between 6 a.m. - 9 p.m. Anything outside this timeframe would be unacceptable. Remember, you can always set your phone to silent if you do not want to be disturbed.

Under no circumstances are creditors or debt collectors allowed to suggest you borrow money or raise the cash by selling assets to pay their debts. This can put you in a worse financial position than you’re currently in.

You should not prioritise one creditor over another when the debt is not a priority debt. If a creditor or debt collector suggests you borrow or raise cash by selling assets, immediately make a complaint. You may end up with compensation. We have you covered on the procedure to make a complaint against a financial institution, too!

Contacting you using social media channels is prohibited, whether via a direct message or publicly posting on your page. The latter is the worst of the two. Debt collectors and creditors must use acceptable channels like post, phone, or email. Contacting you via social media can be classed as harassment.

Creditors and debt collectors cannot assign multiple different debt collectors to chase you for the same debt simultaneously.

In case you didn’t know, debt collectors buy debts and sometimes outsource them to other debt collectors to collect. Yes, we know that might sound confusing, but some debt collectors have too many debts to cope with, hence the reason for outsourcing.

If you find yourself in a situation where two debt collectors are pursuing you for the same debt simultaneously, it's important to remember that this is unacceptable. It's a form of harassment, and you have the right to take action against the debt owner. You can see how to do this here.

Debt collectors or creditors like to use different tactics to try and get people to pay up. If you’ve read our 'Taking control of your emotions and your debt' article, you will understand how emotions play a significant part in debt recovery. Unfortunately, some debt collectors or creditors use the illusion that your debt is more severe than it is by doing things like:

• Using a logo similar to a county court logo
• Using paper designs similar to court papers

Using misleading tactics is harassment, and it can cause some people to act unnecessarily or emotionally in response to the letter.

There’s a reason why we say you should keep communication in writing (so that you have a clear record of what has been said). Some debt collectors or creditors have been known to imply that specific legal actions can be taken or state that legal action has already been taken when it is not true.

For example, telling you that if you don’t pay up, bailiffs will come to your home to recover goods without going to court (which is false). This is harassment and can scare a person into taking unnecessary action.

Another example is a debt collector or creditor stating that your debt has been to court and that you’ve already received a County Court Judgment (CCJ) when, in fact, that has never happened.

If you ever find yourself in a situation like this, it's crucial to gather evidence. This will help you make a complaint and protect yourself from deceptive practices.

Yes, we know it sounds unbelievable, but some debt collectors or creditors are so determined to make you pay that they will even tell you that you could go to prison if you don’t.

Going to prison because you owe money to a debt collector or creditor is a straight lie, harassment and debt collectors and creditors are not allowed to say this. This may be the case in some countries but not in the UK. If that were the case, there would be more people incarcerated than on the street.

In some cases, with government debt, this is possible, but it is not the norm.

This isn’t Narcos; you’re not dealing with Pablo Escobar.

Under no circumstances can a debt collector or a creditor threaten you physically or verbally if you don’t pay. If that does happen to you, take it seriously! Immediately call the police, as your safety is paramount. Once you know you are safe, follow the process of filing a complaint. Harassing behaviour like this is entirely unacceptable.

A creditor or debt collector should never pressure you to clear a debt or pay large sums towards a debt you cannot afford.

This, again, is completely unacceptable and can be classed as harassment. Under Section 7.3 of the Financial Conduct Authority Handbook, creditors are never allowed to suggest amounts for a person to pay when in financial difficulty. Never feel pressured to pay what you cannot afford under any circumstances.

There’s a reason you need to go through data protection before being able to discuss your debt with a debt collector or creditor.

Your debt situation is your business and yours only.

That means that a debt collector or creditor cannot discuss your situation with anyone else but you. They can’t ask anyone to pass you a message about your debt—not your partner, parents, or anyone else. Actions like this can put serious pressure on a person, hence the reason it’s not acceptable.

A typical example is a debt collector or creditor claiming to work for or on behalf of the court when that information is false. Again, this is harassment.

When a debt collector or creditor tells you something, don’t immediately take what they say as fact. It’s so important to ask questions or do your research (which you can do on this site). Remember, knowledge is power; the more you understand this subject, the easier it is to identify if someone is deliberately trying to harass or pressure you.

It is well known that the word “bailiff” can send some people into a frenzy. Debt collectors and creditors know that. Unfortunately, some have been known to employ this tactic to harass people into paying, whether they can afford to or not. If you are not sure whether a person is genuinely a bailiff, ask for their company name and check to see if they appear on any of these links below:

• Certified Enforcement Agent
• High Court Enforcement Agent

If you do find that a company is trying to impersonate a bailiff, you know what to do. Click here to follow the complaints process.

If a debt collector contacts you for a debt and the original creditor has not informed you that this is happening, the communication from the debt collector is classed as harassment.

You must be provided with a “notice of assignment”. If you don’t know what this is, it’s all good; we got you. It is a letter from the original creditor informing you that your debt has been passed to a third party for collection.

If you haven’t been sent this, you can tell the debt collector that you will not engage with them until they provide it. You shouldn’t just pay money to any random company that contacts you.

Talking about your debt in a public place can be classed as harassment.

This could be done online, physically, or over the phone, etc. As we mentioned at SIGN #11, your situation is your business, not someone else’s

Creditors and debt collectors are not allowed to name and shame or feed the details to people who know you, causing you embarrassment or humiliation. It is also a serious breach of data protection. If this ever happens, you must file an official complaint and go through the process. You should expect to be compensated for this sort of behaviour.

To file a complaint, follow the instructions provided in the link here.

If you have told the debt collector or creditor that you believe you don’t owe them any money, they must stop asking you to pay and investigate your claim. They must not ignore your claim.

If they continue to contact you asking for payment despite your claim, it is harassment. No means no. No does not mean carry on.

Remember, it's essential to keep everything in writing. This provides proof of your claim and their continued pursuit. Also, remember to follow the complaints procedure as detailed in the article. It's a formal way to address the issue and can lead to a resolution.

The Real Debt Guy is a qualified financial adviser and a UK debt expert. The information in this article is considered to be true and correct at the publication date.