Enforcement Action
One of the most worrying things about financial problems is getting
demands for repayment through the post.
Creditors are entitled to make reasonable demands for repayment.
There are a number of steps that they are obliged to take by law
before they can attempt to recover money. However many of the letters
that are sent out are poorly worded and threaten legal action and
further steps that may not be applicable.
Some letters will say they are 'pre-legal' or 'pre-court' but
they are NOT legal documents. They are simply stating the creditor's
intention (which is not always acted upon) to take action if full
payment, or a reasonable offer, is not made.
A 'default notice' is a genuine pre-legal document which most
creditors must issue before they can take any steps to recover
the debt in the county court.
It is important to note that at this stage it is still possible
to make an offer of payment, as shown above. The default notice
also contains a paragraph that advises you to see help from a CAB
or Law Centre.
Debt Collectors
Many creditors appoint debt collectors to recover
money owing to them. Even if a debt is being collected by a debt
collector
they are still only entitled to ask for reasonable repayments which
should take into account someone's ability to pay.
Debt collectors can be negotiated with in exactly the same way
as set out above. They have NO legal powers to enter your home,
take goods etc and they cannot use bailiffs without a court order.
Complaints about creditors and 'harassment'
Creditors' letters telephone
calls and visits can sometimes create a strain upon a person
in debt, and there may be occasions where
these can become intrusive.
If you are taking responsible steps to deal with your debts and
you are still getting letters and calls, you may wish to make a
complaint about the creditor or collector.
If this is happening to you, take the following steps:
- Write to the creditor, explaining the steps you are taking to
resolve your debts.
- If you feel you are getting too many letters or calls, ask
the creditor to send only essential communications in writing.
- If the problem carries on, keep any letters and keep a log
of calls, including the date, time, who the call was from
and what was said.
- There is a big difference between creditors just being persistent
and them actually being guilty of harassment - this is
a criminal offence. If you want to make a complaint or you
feel that you
are being harassed, get advice at once.
'Loan Sharks' - All credit lenders must be legally licensed;
a lender who is not, and who ignores the rest of the rules,
is often
referred to as a loan shark No matter how bad your debts seem, never borrow from an unlicensed
lender, they may demand extortionate payments, randomly increase
the debt and enforce payment by illegal means, including threats
and violence.
It will be impossible to negotiate with a loan shark - seek help
if you are being harassed. |
