Debt collection: The law and your rights

The law is designed to prevent you from being harassed, threatened, intimidated or misled.

Key elements of the law include: 

Clear communication

You have the right to clear, accurate information about what you owe.

Proof first

You can ask for written confirmation of the debt before paying anything.

Rules on privacy

Debt collectors can’t discuss your debt with family, friends or neighbours without permission.

Limits on home visits

Collectors must give notice and cannot enter your home without permission.

They must also only visit you at a “reasonable” time of day - usually between 8am and 9pm. 

Fair treatment

You can’t be harassed, threatened or pressured into paying what you owe.

Professional advice 

You can always speak to a debt adviser or legal professional. 

With most unsecured debts, the organisation chasing the money can pursue it for six years from the date of the last payment or acknowledgement of the debt.

After this point, the debt may become statute barred.

If you’ve fallen behind on your mortgage and your property is repossessed or sold for less than the outstanding balance, the lender can chase the remaining capital debt (shortfall) for up to 12 years.

If you get a demand for payment, then the first thing you should do is check whether it’s legitimate.

Ask the creditor or debt collector for a written statement telling you details about the debt, such as how much you owe.

You’ll then know exactly what the situation is and possibly be able to look at options like: 

• setting up a payment plan you can afford
• asking for a payment holiday if you’re struggling

If you’re not sure what to do next, it could be worth speaking to a debt adviser.

Yes, debt collectors must give you notice before arriving at your home.

They also can’t enter without permission and must explain why they’re visiting you.

Debt collection agencies aren’t allowed to threaten or intimidate you or contact customers at unreasonable times.

They also can’t mislead you about the consequences of not paying a debt.

If they do, this could count as harassment.

Yes, if you believe you’re being treated unfairly by a creditor or debt collector, you can make a complaint.

It’s best to do this via letter or email, so you have a written record of your complaint, and it could be useful if you need to escalate it later on.

Make sure your correspondence is clearly marked as a complaint, explain your grievance and say what you’d like to see done to resolve the situation.

You can also ask the creditor or debt collector for a copy of their complaints procedure, and ask them to stop chasing you for payment while an investigation is underway. We should point out though that they don’t have to do this.

Ideally, your complaint later should give hard evidence and factual information, such as dates, times and names of callers.

And make sure you ask for a written reply.

Again, having a written record and paper trail could be useful if you need to take your complaint further.

Once you’ve submitted your complaint, you can expect the creditor or debt collector to confirm they’ve received it and tell you how they’ll handle it.

They should set out how long they expect to take investigating your grievance and if they’ll pause your account while this process is underway.

If you’re not happy with their response and your grievance hasn’t been resolved to your satisfaction, you can escalate it to the Financial Ombudsman Service.

There are a number of laws specifically setting out what debt collectors and creditors can and can’t do.

1. Consumer Credit Act 1974 (CCA)

This lets you ask for a copy of your credit agreement and lays out the need for clear communication and fair collection practices.

It also includes protections against unfair contract terms and misleading lending.

2. Financial Conduct Authority regulations

The sector watchdog, the Financial Conduct Authority, also has its own rules on how debt collectors must be authorised and ethical practices they must follow.

The rules state borrowers must be treated fairly, without undue pressure to repay, and that agencies must provide clear information about balances, interest, fees, and repayment options. 

3. Administration of Justice Act 1970

This protects you from harassment and intimidation, prohibiting:

• threatening or abusive language
• excessive calls or visits
• misleading claims about legal consequences

Creditors who break these rules may face legal action and you may have grounds to complain.

4. Tribunals, Courts and Enforcement Act 2007

This regulates the powers of bailiffs so they can’t act unfairly or excessively.

It also makes sure that enforcement teams can only take appropriate goods, and protects vulnerable people, such as those with disabilities or facing financial hardship.