| |
| |
|
WebsiteAlways |
|
Harassment of People in Debt by Creditors
Harassment Harassment of people in debt by creditors or their agents is a criminal offence under the Administration of Justice Act 1970. It is often difficult to know what to do when you feel a creditor is not dealing with your account fairly. In order for you to identify what activities by your creditors may involve harassment and what can be done about the problem, this factsheet outlines: The relevant section of the Administration of Justice Act The Office of Fair Trading (OFT) Debt Collection Guidance on harassment How to deal with harassment by your creditors. SECTION 40 OF THE ADMINISTRATION OF JUSTICE ACT S40 Punishment for unlawful harassment of debtors. 1. A person commits an offence if, with the object of coercing another person to pay money claimed from the other as a debt due under a contract he: harasses the other with demands for payment which, in respect of their frequency, or the manner or occasion of making any such demand, or of any threat or publicity by which any demand is accompanied, are calculated to subject him or members of his family or household to alarm, distress or humiliation; falsely represents, in relation to the money claimed, that criminal proceedings lie for failure to pay it; falsely represents himself to be authorised in some official capacity to claim or enforce payment; or utters a document falsely represented by him to have some official character, or purporting to have some official character which he know it has not. 2. A person may be guilty of an offence by virtue of sub-section (1) (a) above if he concerts with others in the taking of such actions as is described in that paragraph, notwithstanding that his own course of conduct does not by itself amount to harassment. OFFICE OF FAIR TRADING CODE OF GUIDANCE Many activities could count as harassment. It is important to note that anything done by a person which is reasonable when trying to recover a debt, is not considered to be harassment. Both the Office of Fair Trading and Trade Associations (run by the credit industry) have produced guidance on what activities may be considered harassment and should therefore be avoided by creditors. The following list is taken from the new Debt Collection Guidance for holders of consumer credit licenses. Creditors are warned by the Office of Fair Trading under the Debt Collection Guidance that the following practices are "considered unfair": IT IS UNFAIR TO COMMUNICATE, IN WHATEVER FORM, WITH CONSUMERS IN AN UNCLEAR, INACCURATE OR MISLEADING MANNER. This includes: Letters that look like court claims Not making it clear who the company is or what their role is Unhelpful legal language Not giving balance statements about the debt when asked Contacting you at unreasonable times even when asked not to Asking you to contact them on premium rate phone numbers. THOSE CONTACTING DEBTORS MUST NOT BE DECEITFUL BY MISREPRESENTING THEIR AUTHORITY AND/OR THE CORRECT LEGAL POSITION. This includes: Claiming to work for the court or be a bailiff Implying action can be taken that is not legally possible such as implying they could take your property using a business name or logo that implies they are a government body Implying that court action has been taken against you when it hasn't Implying not paying your debt is a criminal offence Threatening to take court action in England if you live in Scotland or the other way round. PUTTING PRESSURE ON DEBTORS OR THIRD PARTIES IS CONSIDERED TO BE OPPRESSIVE. This includes: Contacting you too frequently Pressurising you to sell property or take out more debt Using more than one collection company at the same time or not telling you when your debt has been passed to another company Pressurising you to pay in full or in large instalments you cannot afford Making threatening gestures or statements Ignoring disputes about whether you owe the money Trying to embarrass you in public or threatening to tell a third party about your debts such as a neighbour or your family. DEALINGS WITH DEBTORS ARE NOT TO BE DECEITFUL AND/OR UNFAIR. Examples include: Sending letters addressed to the occupier or discussing the debt with someone without knowing if they are you Refusing to deal with an adviser acting on your behalf Not accepting reasonable offers or passing on payments you make Refusing to freeze action if you dispute the debt. CHARGES SHOULD NOT BE LEVIED UNFAIRLY. Examples include: Claiming collection costs when the original credit agreement didn't allow this to happen and making you think you are legally liable for the costs Not putting the specific amounts that can be added for collection costs in the original credit agreement Adding unreasonable charges. THOSE VISITING DEBTORS MUST NOT ACT IN AN UNCLEAR OR THREATENING MANNER. Collectors should explain the reason for any visit and give you notice of the time and date they will call They shouldn't visit if they know you are ill or vulnerable and if they find you are unwell or distressed they should leave They should not come in if you do not want them to and should leave when you ask them to They shouldn't visit you at work or somewhere like a hospital. HOW TO DEAL WITH HARASSMENT BY YOUR CREDITORS The first step is to write to a creditor and outline your concerns about the company's behaviour. Inform them that you are familiar with the terms of Section 40 of the Administration of Justice Act and ask that the creditor takes steps to avoid similar occurrences in the future. Tell your creditors how you would prefer to be contacted and ask that they confirm their agreement to this. A letter at this stage may avoid the need to take further action against the company. Tell them you are aware of the OFT Debt Collection Guidance and that you will consider making a complaint about their behaviour under the guidance. It is usually difficult to persuade the police to prosecute in cases of harassment unless a more serious offence such as violence, fraud or blackmail is also involved. Normally complaints should be made to the trading standards/consumer protection department at your local council. They should investigate whether an offence has been committed and whether prosecution is appropriate. The penalty is a fine of up to £5,000 in the Magistrates Court. Also a conviction is likely to provide evidence that the creditor is no longer a fit and proper person to hold a consumer credit licence. If Trading Standards will not act it may be worth contacting the Office of Fair Trading directly. The address is at the end of the factsheet. The OFT does not usually take up individual complaints but their Debt Collection Enforcement Team collects information that can be used to take action against creditors who can lose their consumer credit licence. The creditor may be a member of a trade association with a code of practice. You could find out if your creditor is a member of a trade association and write to them with your complaint. A code of practice is not legally enforceable but the association may take some action against their members. Details of the main trade associations are at the end of the factsheet under "Useful Addresses". OTHER OPTIONS Another alternative is for you to pursue your own prosecution in the Magistrates Court. This could involve considerable cost so you need to obtain proper legal advice first. BT have a new service called "Choose to Refuse" which might help if you are getting a lot of calls from an unpleasant creditor. You have to key in a pin number after a call. The caller will then get an automated message if you don't wish to take their call when they ring. The cost of the service is £8.00 per quarter. If you receive a telephone service from another provider, contact them and ask if they have a similar service. You could refer to the Malicious Communications Act 1988. This deals with the sending of letters or articles for the purpose of causing "distress or anxiety". A person found guilty can be fined in the Magistrates Court. To prosecute successfully, the letter or article sent would have to convey:- A message which is indecent or grossly offensive A threat; or information which is false and known or believed to be false by the sender. The Criminal Justice Act & Public Order Act 1994 Section 4a makes it a criminal offence to cause Harassment, alarm or distress with intent by using threatening, abusive or insulting words or behaviour. This can only be an offence if it happens in a public place not in your own home. The police would need to be contacted and prosecute for this offence. The Protection from Harassment Act 1997 makes it a criminal offence to harass people and put people in fear of violence. The harassment must happen on at least 2 separate occasions. The police would have to agree to prosecute for this offence. USEFUL ADDRESSES The Finance & Leasing Association (FLA) The Consumer Credit Trade Association (CCTA) Credit Services Association Ltd (CSA) Consumer Credit Association (CCAUK) Mail Order Traders' Association (MOTA) Office of Fair Trading If your complaint is against a solicitors firm acting for a creditor, a complaint can be made to: Consumer Complaints Service The author, Michael Sherriff, has written 100's of articles realting the UK credit and finance industry. Family and personal money matters can often be a great concern and in some cases lead to depression or even suicide. This is something that has affected Michael personally and since then has carried out extensive research into the financial industry and released articles to educate those that need advice. His ebook "UK Credit Secrets 2005" has become a UK best seller for anyone wanting to know the truth about credit repair and what they can do to repair their credit history. Find out more at UK Credit Secrets
MORE RESOURCES:
Credit - Google News |
|
|
|
RELATED ARTICLES
The Exact Action To Take When You Find Errors In Your Credit Report There are times when you may be turned down for credit and you do not understand why.According to the Fair Credit Reporting Act you are entitled to a free copy of your credit report if you have been denied credit because of negative items on your credit report within 60 days of the request for credit, if you are unemployed but looking for work, are on state benefits, or believe that your credit report is incorrect because of fraud. Credit Report - How to Improve Your Credit Score One of the great mysteries of life is how the three major credit bureaus (Experian, Equifax, and Trans Union) score credit. They all have secret statistical formulas for determining your credit score, but they are unwilling to divulge exactly what, exactly, constitutes your score. Your Credit Rating and How To Check It There is a lot of confusion surrounding UK credit ratings, credit scores, credit blacklists, credit reports, and credit files. This guide to your credit rating aims to give you the facts you need. Credit Counseling: Is it Really Necessary? Not everyone has a positive experience with credit counseling. Potential creditors often frown upon consumers who are going through credit counseling, denying them credit or sticking them with elevated interest rates on new lines of credit. What Can Happen to You as a Victim of Identity Theft, Facts & Figure Is identity theft really that serious? Thousands of people every year are victims of this terrible crime. Thieves use your personal information to commit fraud or other crimes in your name and can cause significant credit damage. Check Your Credit Before Shopping For That Home Loan Review Your Credit Score.Nearly every bank, credit union, and mortgage lender relies on a three digit score provided by one of the three major credit bureaus to help them make lending decisions. How To Eliminate Credit Card Debt There is almost nothing more troublesome than having too much debt to pay each month. Consumers incur debt for many different reasons. Identity Theft - Dont Think You Are Immune As identity theft becomes more prevalent, the need to regularly check your credit report is very easy to see and understand. Two big headlines in the news recently point to how closely tied your credit report and identity theft are. How to Repair a Bad Credit Rating If you have a bad credit rating, then you might find that your ability to get financing, loans, and even some jobs is greatly diminished.Once you have a bad credit rating, it might seem like there's nothing that you can do about it? but you don't have to believe that. Free Credit Report - Watch Out for Scams Many people may still not be aware of an amendment to the Fair Credit Reporting Act (FCRA) that Congress passed last year. This amendment allows U. Rebuild & Keep Good Credit Ratings by Understanding Your Credit Cards Secured Credit Card is similar to a prepaid credit card since the funds you are using are actually yours and not the issuer of the credit card. Generally people who apply for secured credit card or prepaid credit card are people with poor credit or unemployed. Understanding Credit Report Score Understanding credit report scores is important when you see your credit report because you need to be able to make some sense of it.Your credit score is used by anyone loaning you money such as credit card companies, home loan lenders, auto loan lenders and finance companies. Bankruptcy Myths Busted The average American knows very little about bankruptcy. Most people probably are aware of bankruptcy's ability to dissolve debt and give the debtor a fresh start. Like It Or Not, You Have A Score To Settle! Part 1 Just when most people finish with school and can stop worrying about test scores, there's a new kind of scoring that enters the picture. It's called credit scoring. Commercial Collections: Business Finance Booster Shot Commercial collections: fixture of the new B2B cultureIf you're in the business-to-business field, or even if you're a consumer products business that works through third-party distribution channels, you probably know what it's like to check your mail anxiously each day, sifting through all the bills for that payment that was supposed to have been in months ago.It wasn't supposed to be like this. What You Need To Know About Credit Cards What is a credit card? A credit card is a card that allows you to borrow money to pay for things. There will be a limit to how much you can spend called your credit limit. 5 Ways To Raise Credit Score It's not as hard as you think to raise credit score. It's a well known fact that lenders will give people with higher credit scores lower interest rates on mortgages, car loans and credit cards. Top 7 Factors to Consider While Reviewing Credit Card Offers Credit cards have migrated from being hip or convenience product into a must have entity for everybody. Shopping Online you need a credit card. Credit Card Shocker Have you ever looked at your credit card statement? I'm not talking about just making sure that all the transactions are correct. I'm talking about looking at the finance charges. Can You Acquire Good Credit Overnight? You Bet Your credit file may not reflect all your credit accounts. Although most national department store and all-purpose bank credit card accounts will be included in your file, not all creditors supply information to credit bureaus : Some travel, entertainment, gasoline card companies, local retailers, and credit unions are among those creditors that don't.
|
| Interesting articles | Home | site map | Link |
| © 2006 |
