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5 Things Debt Collectors Are Forbidden to Practice

  • September 15, 2022
  • Posted by: Taurus Collections
  • Category: Blog
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Debt Collectors

The debt collection industry struggles to get good press. The harmful or illegal actions of a few unprincipled companies have overshadowed the value and importance of debt collection agencies that diligently return money to their actual owners. However, the Financial Conduct Authority (FCA) has set specific rules and guidelines regarding how Debt Collection Agencies should operate and the policies they must follow to support vulnerable customers.

Below are five typical tactics debt collectors are forbidden to practice while collecting debts.

 

Pretend To Work For a Government Agency

Debt collecting agencies cannot pretend to work for any government agency, including law enforcement. They are prohibited from claiming to be working for a consumer reporting agency.

This is one of the significant reasons why you should always do your research and hire a professional debt collection agency. When selecting your potential debt collectors, ensure they have the proper knowledge, qualifications, certifications, and experience to ensure that your collection tasks are taken care of professionally.

 

Threaten To Arrest You

Collection agencies are forbidden to falsely claim that a debtor has committed a crime or threaten to get them arrested if they don’t repay the money they owe. Remember that failing to pay debts on time does not land someone in prison. Furthermore, debt collection agencies cannot issue an arrest warrant or put people in jail.

 

Publicly Shame You

It is against the law for debt collectors to publicly shame or harass people into paying money they may or may not owe. Additionally, a debt collection agency cannot send postcards or publish the names of people who owe money anywhere. They are not permitted to discuss the matter with anyone except the debtor, their spouse, or their attorney.

 

Try To Collect the Debts You Don’t Owe

Some crooked debt collectors knowingly or unknowingly rely on incorrect information to get money from people. Therefore, you should always hire a reputed debt collection company with legal qualifications and experience in collecting debts.

Remember that a professional debt collecting agency will always follow the correct procedures for debt collection. This might include calling debtors within five days of first notice or sending them a written note stating how much they owe, to whom, and how to pay. The debtor must reply promptly to this notice. If they don’t recognise the debt, they have the right to ask for more information on the debt and creditor.

 

Harass You

The law has restricted specific ways that debt collectors used to harass debtors. These include:

 

  • Act(s) of coercion.
  • Calling repeatedly.
  • Using obscene or profane language.
  • Calling people before or after working hours without their permission.
  • Calling people at work if you forbid it in writing.
  • Contacting people at all if they tell the collector, in writing, to stop contacting them altogether or to contact only their attorney.

 

About us

Are you having trouble collecting your debts and looking for a convenient way to handle your business debt collection? We are here to help! Taurus Collections (UK) Ltd. have straightforward techniques to help our clients with certain debt collection services. Our services include:

 

Use our Late Payment Calculator to compute your outstanding credit amount. Contact us at 01332 565 350 (Derby) or 0800 069 8777 or email us at enquiries@tauruscollections.com to know more or get in touch. Also, connect with us on Facebook, Instagram, and Twitter.