UK Debt Collectors & Bailiffs: Know Your Rights
Debt Collectors and Bailiffs are not as scary as you think! So, if you’re panicking, it should end here.
There’s a real stigma surrounding Debt Collectors and Bailiffs. Someone turning up looking like Bullet Tooth Tony in the movie Snatch to help himself to your possessions.
If you’re a Debt Collector or a Bailiff and you want payment, it’s not necessarily bad for people to believe this sort of person will knock at your door if you don’t pay up.
You will learn today that the behaviour of Debt Collectors and Bailiffs (Enforcement Agents) must be different from the stereotype you have in your mind, and it’s based on regulation.
Understanding Debt Collectors & Bailiffs
Debt Collectors and Bailiffs Must Follow the Rules
Both Debt Collectors and Bailiffs (now known as Enforcement Agents) have set rules they have to follow. They may be in serious trouble if they do not follow these rules. One thing's for sure: they are certainly not allowed to try and intimidate or make threats should you not be able to pay any money owed. So, no head down the toilet or anything similar. If you ever have to deal with either, you should expect more of a “sir” or “madam” treatment.
Who Regulates Debt Collectors?
Consumer Debt Collectors are regulated by the Financial Conduct Authority (FCA) and are subject to their guidance. If your debt is an unsecured Consumer Credit Act debt (such as credit cards, personal loans, overdrafts, store cards, etc), the debt collector must follow section 7.3 of the Financial Conduct Authority Handbook.
What does this mean for you? Better protection. You will be able to make Token Payments towards your debts. We have an article about this in the purple box below.
Who Regulates Bailiffs (Enforcement Agents)
No set body regulates Bailiffs; it depends on the debt, the creditor, and the bailiff. The rules for how a bailiff should behave while trying to collect a debt are clearly set by the UK Government.
The purple box below contains a full article on what Bailiffs cannot do, what they can’t take, and more.
How should you handle a Debt Collector?
Debt Collectors can be straightforward to deal with as they are well-governed.
Key Tips for Dealing with Debt Collectors
We have a few key tips that you should take note of:
- Always correspond in writing only
- Never throw away the letters you receive
- Don’t ignore the letters
- Always check if your debt is statute-barred before engaging in any conversation or making any payments.
- Never feel pressured to make payments that you cannot afford
- Remember, Debt Collectors are not allowed to suggest amounts for you to pay to them
These are some of the key points. We won’t leave you with this, though; you need more detail to understand these points. Like magic, we have articles in the purple box below to help you understand why these points are essential.
Need help speaking to your creditors?
Let us do the work for you. Whilst you focus on the more positive things in life. You can book a 10-minute discovery call with The Real Debt Guy. We got you!
Common Mistakes to Avoid When Handling Debt Collectors
Okay, so we’re going to be clear on this. Certain practices circulate on the internet that we never recommend you use. They may seem correct as a way to handle debt collectors, but they may not work practically. Also, your situation may end up far worse than needed.
If you don’t know the methods we are talking about, read the article in the purple box below. It will give an idea of why we say this and the consequences.
You should always handle Debt Collectors using the rules already in place for them to follow. They are there to protect you from harmful practices.
The Real Debt Guy
You should always handle Debt Collectors using the rules already in place for them to follow. They are there to protect you from harmful practices. Any information we provide to tackle your debt with a Debt Collector will be from the Financial Conduct Authority (FCA) or the UK government. So, you can be sure if you follow their rules and guidance, you will be fine.
What to Do If a Bailiff Comes to Your Door
First things first: Don’t just do what the bailiff says; know the rules before acting. They are not sent out to intimidate you; they must act professionally at all times.
Important Tips When Confronted with a Bailiff
As mentioned, we have an article that will give you signs to look out for to see if a bailiff misbehaves in the purple box below. Here are a few tips to note when confronted with a Bailiff:
- Don’t automatically open the door, as it is not a legal requirement that you let a Bailiff into your home
- Never engage with a Bailiff without checking that they are who they say they are (more about this is in the article in the purple box below)
- Don’t act criminally towards the Bailiff (e.g., physically assault the bailiff or similar)
- Don’t panic! Be calm always; remember, the Bailiff cannot legally try to intimidate you.
Preventing Debt Collectors & Bailiffs
It takes a lot to get to the stage of a Bailiff knocking at your door. Try to tackle the situation long before you reach this stage.
We know sometimes things happen in life, and you may not have been able to avoid this outcome. Make sure you read the articles on this page so at least you will know that Bailiffs are not something to panic about
As for Debt Collectors, they are not something to lose sleep over. Your key takeaway should be that you are protected by section 7.3 of the Financial Conduct Authority Handbook.
If you’re struggling to the extent that you can only pay £1 per month, the Debt Collectors are expected to accept what you can afford. Visit our I need help with debt section to learn more about how to deal with your financial struggles.
