Consumer rights and harassment issues are a subject that contains as many myths as there are facts. Harassment will usually take the form of credit or loan companies applying pressure to those that are unable to pay their debts. Problems occur when disreputable companies use underhanded methods to recover money designed to instill fear into the debtor.
Debt Collection Scare Tactics
Debt collection agencies will bank on the debtor’s lack of consumer rights knowledge when it comes to collecting debts. This is not to say that all debt collection agencies will use scare tactics to collect debts. There are reputable companies that know some methods cannot be used to recover debts. However, there are still a large number of companies that will use the “any means necessary” method to recover monies owed. These companies use methods designed to instill fear into the debtor with no thought of the stress caused to the debtor.
Consumer Rights and Debt
If a consumer has fallen behind or is unable to pay their debts then a strict process must be followed by the debt company. The debt recovery process is strictly controlled under the Consumer Credit Act and the first step taken must be a letter of default to the debtor. The default letter must contain details of any breach of contract and the steps that must be taken to rectify this breach. No further action can be taken by the collection agency unless the letter of default has been sent to the debtor.
Post Default Letter Process
If the default letter has been sent and no steps have been taken to remedy the breach of contract then the next step of the process will begin. This can either take the form of court action or a payment arrangement can be made with the debtor. An arrangement means that a satisfactory agreement has been reached regards repayments between the debtor and the collection agency. This is the point where harassment usually comes into play between debt collectors and debtors.
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Basically, debt collectors have no legal right whatsoever to use scare tactics to demand money that is owed to them. They are not court appointed bailiffs and do not have the same legal recover powers. This is where harassment methods usually begin; debt collectors know these methods are not permitted by law but will bank on the debtor’s lack of consumer rights knowledge. There are number of methods that debt collectors will use to instill fear in the hope of recovering money, nearly all of which are illegal.
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Debt Collection Tactics
When it comes to recovering money disreputable debt collectors will use methods including:
- Continual phone calls to the debtor’s home or office
- Threats of taking the matter to a criminal court when the only court action can be the civil courts
- Arrange home visits without the debtor’s permission, this is not permitted
- Threaten to repossess the debtor’s goods without a court order, again this is not permitted
- Use threatening language either over the telephone, by letter or in person
- Threaten to publicly reveal debts
- Send letters that look as if they have been issued by the courts
- Contact the debtor’s employers with the intention of causing embarrassment
Illegal Harassment
All of the above methods used by some collection agencies are in fact not permitted under the Consumer Credit Act. However, disreputable collectors know that placing debtors in a state of fear or threatening to embarrass them will have the desired effect. Debtors that are being subjected to this kind of harassment do have a legal right to report these agencies and the consequences to the collectors can be severe. By standing up and enforcing consumer rights debtors can stop these types of underhanded scare tactics from continuing.
Who to Contact
Debtors that are being harassed should keep a diary of all contact between the debt collectors and themselves. They should then contact their local Trading Standards office with the diary of harassment and all letters sent by the collectors. The Trading Standards office will follow up the matter and do have the power to issue verbal warnings or proceed with criminal prosecutions against the debt collection agencies. Consequences can also include the debt collection agency having their credit licence revoked by the Office of Fair Trading.
Harassment by debt collection agencies can place debtors under severe mental strain. These types of debt collecting methods are against the law and should not be tolerated by consumers. This type of harassment will only end by the debtor standing up to the disreputable collectors and enforcing their consumer rights.
I endured the most traumatic harrassment from Everest Windows.
My windows were installed just before Christmas. As we had a small amount of building work completed by them I had a huge amount to clear up(brick dust). They left at 3.30 on the Thursday and at 8.40 am the next day a man called Robbie was on the phone to me demanding for the balance payment. I explained I’d not looked at the windows as it was dark and so much clearing up to do and it would not be until after the weekend at the earliest I’d get a chance. He was ringing from a mobile. I told him that I’m not giving my card details to someone on a mobile phone anyway and that he could be anyone ringing. I said until the snag list and missing parts is complete the job isn’t done anyway. I rang Everest customer services immediately after as I was so upset by his tone. They said it was fine for me to pay when all is complete. The following week I received calls from mobiles and the sittingbourne office number , emails and demands. I explained I’d been told it was ok to pay when all work was complete. They demanded to know who said this. During one episode of harassment that week I was speaking from my landline in distress to customer services again and they were calling my mobile repeatedly. Hanging up and calling again. I told the man on the phone look they are doing it whilst on phone to you. He asked for the mobile number and confirmed it was an employee. I reported this to Everest customer relations on 21 December 2017. I put it on trust pilot too but I think they got it taken down. I’ve heard nothing but acknowledgements and they say it’s been investigated. A lady called Sally (senior position in customer relations) has never even contacted me or spoken to me re the complaint. It was so traumatic, I’m concerned that if they do this to someone who is elderly or that’s not well, I wonder how the stress will effect them health wise! I suffered panic attacks for a few weeks after and I’m in my 40’s. As well as being shocked and now very cross at the traumatic ordeal of the harrassment, I am upset they haven’t even come back to me. What else can I do? Do I get legal advice? Any advice welcome.
I hope you may be able to help me with some advice.I am looking to take legal action against a debt collecting agency that opened a CCJ under my name for a debt already paid, without informing me, failed to inform the law company representing them and of course the Court.I found out when trying to rent a flat as I have failed the financial check and being 7 months pregnant this came as a shock.3 A&E visits later,lots of scans, test and baby monitoring ended in induced labor, baby being forced to come by Emergency C section after 4 days of torment(long story short).
They have issed a letter regarding the situation but the damage was already done.
My question is: Can a sue them and am I entitled to any compensation?
Have to mention my credit score damaged because of it, but the main issue is that my baby was in danger because of their action or lack of it.
Many many thanks in advance.
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