Debt: Your Rights
Know where you stand...
If you have found yourself in financial difficulty and unable to pay your bills, there are a number of possible solutions, depending on your circumstances. Depending on how serious your debts are and for how long you have ignored them, you may be able to arrange an achievable repayment schedule with your creditors. However, if you do ignore your debts for too long, you may find that your rights are waived.
If you have buried your head in the sand for too long you could end up facing a County Court Judgment (CCJ) or a knock on the door from the bailiffs. However, before it gets to this stage it is normal procedure for creditors to be flexible and compassionate when it comes to repayment options. If your debts have reached the stage where your creditors are taking action, see below for some of your basic rights:
Energy Suppliers
If the debt is with an energy supplier, it will have standard licence conditions that it must follow which will set out how it should deal with customers who are struggling to pay. So, you should be offered an arrangement to pay off the arrears at a rate you can afford.
Bailiffs
Bailiffs may be sent round if your creditor has filed a County Court Judgement (CCJ). The creditor can file for a ‘warrant of execution’ which is likely to result in bailiffs visiting you to collect what you owe.
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You do not have to let County Court bailiffs into your home and they cannot force their way in on their first visit. However, they can enter through an open window or door.
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Bailiffs recovering money you owe to HMRC are allowed to break into your home, providing they have a magistrates’ warrant.
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You may negotiate with bailiffs to pay some or all of your debts on the spot but make sure you get a receipt.
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Bailiffs' fees and expenses can and will be charged to you on top of your other debts.
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Bailiffs cannot take essentials such as bedding, furniture and cooking equipment, they also cannot take any items you need for your job.
Office of Fair Trading (OFT) Debt Collection Advice:
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Applies to all consumer credit licence holders and applicants.
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It applies to the collection of debt once your account is in default.
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These guidelines state that it is unfair for a creditor to communicate in an unclear and misleading manner.
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According to these rules, putting pressure on you when you are in debt is considered to be oppressive – this includes calling at inappropriate times and frequent intervals.
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Charging for debt collection must be classed as fair. For example, misleading debtors into thinking they are legally liable to pay a debt collection fee if this is not the case is not allowed.
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The rules also state that when visiting debtors, debt collectors must not act in an unclear or threatening manner.
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A debt collector must give adequate notice before visiting a debtor.
If you are unhappy with how you have been treated when trying to resolve a debt issue you are within your rights to complain to the Financial Ombudsman.
For FREE and impartial debt advice, fill in the debt advice enquiry form and a qualified advisor will assess your individual sitaution and call you back to help you work out the best course of action.