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Guide to debt collectors and bailiffs
3 August2021
If you ignore letters and phone calls from your lenders, or you can't agree a new way of repaying your debts, they may decide to send a debt collector or bailiff to your home to get back the money you owe.
When you borrow money, whether it's a mortgage or on a credit card, you do have certain rights - but you also have the responsibility to repay your lenders what you owe them.
Having a bailiff or debt collector turn up on your doorstep can be an intimidating experience. So, if a bailiff or debt collector has said they will visit, or has visited already, this information about your rights and legal obligations will help you know exactly where you stand.
If you are having debt problems, bear in mind that the sooner you take action, the sooner you could get your debts back under control - which means you could avoid facing bailiffs or debt collectors altogether.
You can contact a debt adviser on 0800 195 2911 or visit our website, where you can leave your details with us and we'll get back to you to discuss your options.
Taking on debt
What are your rights as a borrower?
Borrowing money is a decision that shouldn't be made lightly. If you decide to borrow some money - whether it's for DIY, a new car or even to help fund the cost of a holiday - you'll be entering into a contract with your lenders.
You should be asked to sign a 'credit agreement' - a legal document setting out what both you and your lenders are agreeing to, such as how the money you're borrowing should be paid back.
As a result, there are certain things you're obliged to do if you borrow money:
1. Repay your debts in full. Whatever the amount you borrow, by making the arrangement with your lender, you'll be agreeing to pay back everything you owe. This means it's important to consider the total amount you'll pay back, along with the size of your agreed monthly payments. Bear in mind that you'll also be repaying interest on top of whatever you borrow - so it's important to consider the APR (or 'Annual Percentage Rate' - the rate of interest you'll be paying) plus any annual or set-up fees attached to the money you borrow before you take on any credit.
2. Inform your lenders of any changes to your circumstances. If you can no longer afford to make your monthly payments as agreed, you'll need to tell your lenders as soon as possible. You may be able to come to a new informal arrangement to repay your debts at a pace that's manageable for you, or get the help and advice you need to get back in control of your debts.
Remember that if you can't afford to repay your debts, there is professional help available if you need it. If you feel embarrassed or reluctant to speak to your lenders directly, you may decide to get some help from a professional debt management company, who could deal with your lenders for you and help you find a suitable solution.
What rights do your lenders have?
Your lenders lend money on the understanding that you'll repay them everything you borrow.
If you stop making your payments and no alternative agreement has been made, there is action your lenders could take:
- They could decide to employ professional debt collectors to reclaim what you owe on their behalf
- If you have ignored multiple warning letters and calls, they could take legal action against you - such as applying for for a County Court Judgment (CCJ), taking you to court or sending bailiffs round to recover your debts.
Bailiffs and debt collectors: what's the difference?
Bailiffs and debt collectors are not the same thing. They have different rights and powers - so it's important to know exactly what they can and can't do if they visit you.
Who are debt collectors?
Debt collectors could be hired by your lenders to collect the money you owe them. They're often external debt collection agencies who specialise in negotiating with borrowers, although some lenders have their own debt collectors.
In some cases, your lenders will sell the debt to them, making them responsible for getting back the money you owe - but if this happens, you should get a letter telling you this has happened.
Your lenders are only likely to call a debt collection company if you're in several months' worth of arrears on your debt repayments. In other words, it's unlikely you'll have to deal with them if you've only missed one or two payments.
What can debt collectors do?
Whether the debt collector has been hired by your lender or they've bought your debt, they'll have the same rights - no more, no less - as your actual lender.
When debt collectors contact you, they have to tell you exactly who they are and who they're acting on behalf of. They must also be clear about which debt they've been sent to collect, how much you owe them and the action they're legally allowed to take if you don't repay your debts.
What can't debt collectors do?
Debt collectors are not bailiffs - and they can't pretend they are.
First and foremost, as we've mentioned, debt collectors don't have any more legal powers than your lenders, and they must act according to your wishes.
Debt collectors are not allowed to:
- Visit you without your permission
- Enter your home unless you let them
- Stay unless you want them to
- Call you at unsociable hours (i.e. late at night)
- Contact you at work without your permission (unless your debt is a business loan)
- Tell anyone else about your debt, e.g. friends, family or colleagues.
Who are bailiffs?
A bailiff is someone who works on behalf on the courts to collect unpaid debts. They have more rights and powers than debt collectors: they can be court officials or they could be employed by a private firm.
In most cases, bailiffs will only be called in to reclaim your debts if:
- You're in serious arrears with your debt repayments
- You and your lenders haven't reached an agreement on how to repay your arrears
- Your case has been through the County Courts
- The judge has agreed that using bailiffs is the best action to take.
If all four of the above apply to you, it's important you know precisely what bailiffs can and can't do if they turn up at your door.
What can bailiffs do?
Bailiffs have the legal power to take away some of your possessions, in order to sell them and reclaim some/all of the money you owe.
However, they're only allowed to take items that are considered 'non-essential' from your home, e.g. a games console or TV. They will be able to take items from outside your home though, such as your car or any garden equipment.
Bailiffs can enter your home through an open window or door, or if you agree to let them in. In some instances, e.g. if you have unpaid criminal fines, VAT or income tax, bailiffs can force entry into your home - but only as a last resort after all other options have been considered.
What can't bailiffs do?
The first time that bailiffs visit you, they can only enter your home (or your garage or any other building on your property) if you let them in, or they can get in through an unlocked door or window.
However, they're not usually allowed to force their way into your property by pushing past you, or putting their foot in the door. If you haven't let them in and they try getting in this way, you can call the police.
There are also certain things that a bailiff isn't allowed to take. They can't take anything you need to live - so they can't take your clothes, cooker, bed or chairs. They also won't be able to take anything you need for work, such as any tools (although this won't necessarily include a car if you own one).
Bailiffs also can't take your children's toys, or anything that you can prove belongs to someone else (unless that person jointly owns the debt with you).
What should you ask a bailiff?
If a bailiff turns up at your door, you should ask for them to give you proof of their identity before you let them in or pay them.
You should ask for a copy of their bailiff certificate to prove that they are who they say they are. You should also ask for:
- A copy of the court order that says you owe the money
- A copy of their 'authorisation' - a document giving them permission to take your things.
What happens to the things a bailiff takes away?
If bailiffs get into your home, they may get you to sign a 'walking possession agreement'. This means they'll make a list of the items you own that they'll take away if you don't repay your debts in the timeframe set out in the agreement.
Any of your possessions that a bailiff takes away will be sold at auction, and the money raised will go towards repaying your debts.
Although this could take some pressure off you, and give you some time to get the money together to repay your debts, bailiffs will usually charge a daily fee - and they could break into your home to repossess your goods if you fail to stick to the agreement.
Bailiffs & debt collectors: what action can I take?
The thought of a debt collector or bailiff visiting you can be troubling. But it's important to remember that there are steps you can take to tackle your debt problems.
How can I deal with debt collectors?
You should bear in mind that if a debt collector contacts you - or you've been struggling to repay your debts for some time and suspect they will soon - there is action you can take.
You may be able to resolve the situation by agreeing to make payments of as much as you can afford every month - while still leaving enough for your essentials, like your rent/mortgage and utilities - to your lender or debt collector.
Although making smaller payments will mean it takes you longer to repay your debts (and repaying interest for longer could cost you more overall too), your lenders may be more willing to accept this agreement than you may think - as they'll still be getting back everything you owe them, just in smaller monthly amounts.
You could negotiate for lower payments at any stage in the process - whether debt collectors have just started phoning you or they're threatening court action - and if your lenders accept them, it could stop your debt problems getting worse.
If you're worried about talking directly to your lenders or debt collectors yourself, a professional debt management company could help you.
How can I deal with bailiffs?
If a bailiff visits you, you may want to pay them some - or even all - of the money you owe, if you're able to.
If you can afford to pay:
- You don't have to let the bailiffs in - you can pay them on your doorstep if you want to
- Ask for a receipt, so that you have proof that you've paid.
If you can't pay anything right away:
- Speak to the bailiffs about what lower payments you could make
- Tell them you'll pay what you owe directly to your original lenders
- Contact your lenders and offer to repay what you can afford.
However, you should note that if you don't offer to pay, you could be taken to court again.
How do I make a complaint?
Remember that the law is there partly to protect you - as well as your lenders. If you're unhappy with the way a bailiff or debt collector has dealt with you, you're within your rights to make an official complaint.
Most bailiffs work for private companies, so if you have a complaint to make - for example, about any fees you've been charged - you should write directly to the company they work for. If they don't respond, then you should get in contact with the lender or organisation you owe money to - and always keep a copy of any complaint letters you send.
If a debt collector harasses you, you can contact your local trading standards department to make a complaint. If a debt collector makes any physical threats against you, you should call the police.
The Financial Ombudsman Service is also on hand for any complaints you have about how a lender or debt collection firm has treated you. However, before you contact them, you'll need to follow the lender's own complaints procedure.
Remember - you don't have to let things get this far
If you're really struggling to repay your debts, there is action you could take to keep bailiffs and debt collectors at bay.
As long as you can show your lenders that you're repaying as much as you can reasonably afford, it's less likely that they'll get other parties involved.
If there's simply no way you can repay what you owe in a reasonable timeframe, there are some insolvency solutions, such as an IVA (Individual Voluntary Arrangement) or bankruptcy, that could help you regain control of your debts by repaying only as much as you can realistically afford - and as long as your lenders agree to it, you'll be protected from any further action.
For advice and help on how to deal with problem debts, you could speak to one of our debt advisers on 0800 195 2911 or visit our website here.
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Tags: bailiffs, debt collectors, debt management, iva, individual voluntary arrangement