Debt collectors are interested in just one thing: retrieving the monies owed to them. In order to collect monies owed, debt collectors often resort to unsavoury collection techniques such as harassing phone calls to yourself, your employer or your close friends and family members. However, debtors do not have to submit to harassment from collection agents and can instead choose a proactive approach toward dealing with negative debt situations.
First, several UK institutions exist in order to protect consumers from harassment at the hands of lenders and you would be wise to consult with these agencies to see if your lenders are overstepping their legal bounds in their treatment of your case. Second, debtors can employ one of several different repayment methods that help you to gain control over your debt situation and stave off harassment from debt collectors.
Consumer Protection
The Office of Fair Trading in a UK organization that exists for the sole purpose of fostering honest and transparent business dealings between consumers and the companies with which they do business. One of the most basic tenants of the Office of Fair Trading states that it is unfair to communicate with debtors/consumers in a manner that is, “unclear, inaccurate or misleading...”
If you are unsure whether any given lender is crossing over from regular collection practices into harassment, you should not hesitate to contact the Office of Fair Trading to request their advice on the matter.
The Consumer Protection from Unfair Trading Regulations 2008 is a great tool for debtors that wish to surmise whether their lenders have crossed over into harassment in their collection techniques. This watchdog document states that debtors may not attempt to embarrass you in front of neighbors or family members, may not contact you at unreasonable hours of the day or night and may not threaten you will actions that are unenforceable by law. If creditors employ these harassment techniques, they can be punished by fine or even imprisonment.
Proactive Repayment
Many lenders are willing to work with consumers in order to ensure the repayment of monies owed. If you feel that your lenders are harassing you for repayment, you may wish to employ one of the following means of repayment in order to change the tone of your interactions with your lenders. If creditors recognize that you are making a good-faith effort toward repaying your debt, they will typically lay off of forceful collection practices in order to arrive at a mutually beneficial solution to the problem.
A consolidation loan is a sum of money borrowed in order to pay off all of your lenders in one fell swoop. Often, consumers that are approved for a consolidation loan can then negotiate with lenders either on their own or through the employment of a third party (i.e. debt relief agency or debt lawyer) to negotiate a lump sum settlement that is up to 60% less than the original amount owed.
In addition debt management plans are available to consumers owing upwards of £5,000, who have at least 3 creditors and are able to pay at least £100 a month towards their debts.
