Step 4 Dealing with your non-priority debts

What can I do if creditors harass me?

If you do not pay, your creditors are allowed to keep reminding you from time to time but they must not act illegally. If they threaten or harass you to try to make you pay, they may be committing an offence under the Consumer Protection from Unfair Trading Regulations 2008.

The Financial Conduct Authority (FCA) has issued the Consumer Credit sourcebook (CONC). It sets out rules and guidance that organisations must follow when collecting debt. If an organisation breaks these rules or guidelines, the FCA may question their fitness to be authorised to provide consumer credit. Contact us for advice.

Collection agencies

The creditor may pass or sell your debt to a collection agency. Don’t worry. A collection agency has no greater powers than the creditor. They are not bailiffs and have no rights to come into your business or home. If you feel a collection agency is behaving unfairly, contact us for advice.

You should negotiate payments with the collection agency in the same way as your other creditors. Some collection agencies may try to charge you extra fees for collecting the debt from you. You may be able to complain about this. Contact us for advice.

Extra advice:

loan sharks

A loan shark is someone who lends money but does not have a legal licence to do so. They often use violence and threats to make people pay and usually there is no written agreement. If you are worried about an illegal money lender, you can contact the Illegal Money Lending Team.