Every Debt Collection Agency Has to Abide to the Rules of the Government

There are days when people are financially unstable due to unemployment, business loss, extra medical or unavoidable expenses. On such days, they need some financial help to secure their family a meal for the day. Sometimes, that financial assistance also helps them to stand back on their feet. Often friends and family are priority while asking for help, but if it is a huge amount taking a loan is better. With time you clear that debt to your client. In case of failure in paying it on time, it turns out to be a bad debt and impacts your credit score.

Bad debts are those which are past due for many months. Sometimes creditors are able to receive monthly payments from debtors. However, when these debtors are unable to pay the total amount for a certain time and creditors are unable to retrieve it from them, then they contact the third party debt collection agency. These agencies trace the debtors through relatives and friends and send automated messages, letters, and emails to debtors to pay back. To know more about it in detail you can check debt collection Wiki page online, which is the best source of information on any topic.

The debt retrieving agencies can never violate rules as they have to follow legal procedures. In case of nay company is harassing or threatening you through calls or personal visit, you can always contact an attorney to sue them. No matter how bad your debt is, any collection agency will have to give prior notice or set a time and date to meet your personally. Even on a phone call they can’t use abusive language as they have to stick to the rules of CSA and FCA to maintain an understanding between, client and consumer.

There are many debt purchasing companies that purchase bad debt from market and business and then hire a debt recovery collection agency to retrieve bad debt from debtors of those clients. For example, Hoist Finance UK is a debt purchaser and its clients are Barclays, NatWest, Lloyds etc. Once Hoist Finance UK purchases all bad debts from its clients, then they pass it on to Robinson Way collection agency, which was acquired in 2012 via Hoist Finance UK.

If you are debtor of any of their client, then you will receive a farewell mail from your original creditor and hello form the new debt purchaser. It is foolish to ignore such debt letters and pile up at one corner, because these letters sometime contains hidden information. Once you receive informative letters from both parties, then the automated debt letter form Robinson Way collection agency continues to flow into your house every month till the time you don’t pay it off.

Here are certain rules that a debt collector needs to follow –

  • They can’t talk or threaten to talk to your friends or family about your dues without your consent.
  • They can’t add more interest or surcharges to the payment that is due.
  • They can’t abuse or use legal terms or any other powers that they aren’t authorised to.
  • In any sense they can’t mislead or bluff you by giving false call or leaving a false message to harass you.

If you ever feel that you’ve been harassed by them, you can contact an attorney and file a case against the. However, it is always wise to clear your debts with original creditor before it is handed over to any collection agency.

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