What Creditors can and cannot do

#Debtline What creditors can do 

  • They can chase you for the debt by phone or letters; 
  • They can send doorstep collectors; it’s really important to realise that these are not bailiffs and have no more power than someone ringing you
  • They can continue to add interest and charges to your account in line with the original agreement, provided that you’re not in a legally binding solution like bankruptcy or an IVA
  • They can take money from connected accounts. For example if you have a credit card and a current account with the same bank they can dip into the current account and take what is owed on the credit card; they don’t need permission from you. This is known as off setting
  • They can issue a default notice. This is something your creditors are legally required to send once you have defaulted on the original agreement.
  • They can pass the debt on to an internal or external debt collector. These don’t have any more legal powers than the creditor.
  • They can apply for a county court judgment .If you receive one of these you must fill in the paperwork and make an offer of repayment for the court to consider. The court will set a repayment and it’s important that you stick to this.
  • Some collection agencies issue a statutory demand, this is the start of bankruptcy proceedings. However in most cases these are used as scare tactics as a way to get a an offer of repayment.

What creditors cannot do 

  • They cannot harass you, you can inform them directly or through a third party of your situation but they should not be ringing every hour day after day. Request that they only contact you in writing and make sure you open your mail. 
  • They cannot break data protection laws, so they cannot speak to your family, friends, neighbours or an employer.
  • They cannot stalk you on social media 
  • Send bailiffs without having a defaulted CCJ; they may threaten you with bailiffs but unless you have defaulted on a CCJ then what they actually mean is a doorstep collection agent. This is often used as a scare tactic; door step collectors have no more power than someone calling you on the phone, you do not need to pay them.
  • They cannot ask for more money if you made an offer to the court because a CCJ was issued, and this was accepted by the court. Later on if a creditor wants an increase in payment they would need to apply to the court  for a variation of the court order.

Do you have creditors chasing you and want to get them to stop contact Twinpier

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