How debt collectors work

Debt collectors are usually either hired by your lenders to collect what you owe them - or your original lender sells the debt to them. Either way, the debt collector becomes responsible for getting back what you owe.

This can be an unnerving thought for many, but it should be remembered that debt collectors have to follow strict guidance and respect your rights. If a debt collector has been contacting you - or you have been struggling with your debts and suspect that they will soon - there's action you can take.

At any stage in the process, whether you've only just started struggling with debt or a debt collector is threatening court action, you may be able to resolve the situation. Work out how much you can afford to pay towards your unsecured debts every month - without interfering with important costs like food and your mortgage - and offer to pay this reduced amount to your lender or debt collector over a longer period of time. Your lender may be more likely to accept than you think, because receiving something each month is better than nothing.

If you'd like some advice about how to negotiate with your lenders click here.

If you would rather talk to a debt professional about your situation, fill in this debt solution finder and an expert adviser will be in touch.

What can debt collectors do?

Whether the debt collector has bought your debt or is working on behalf of your original lender, they have the same rights as your lender. That means that they can pursue all of the same legal channels in order to reclaim what you owe.

When they contact you, they have to be clear about who they are and who they are acting on behalf of. They must tell you which debt they are collecting, what you owe, and the action they are entitled to take against you if you refuse to pay.

What can't they do?

Debt collectors have to respect you and your wishes. For example, they can only come to your house if you give them permission. You don't have to let them in if you don't want to, and if you want them to leave they have to obey you. They can also only ring you at a reasonable time (i.e. not in the middle of the night).

If your debt collector is calling or visiting you at unreasonable times, this constitutes harassment. They're not allowed to visit or contact you at work unless you've told them they can - or unless your debt is a business loan. They are also not allowed to tell anyone else about your debt.

They're not bailiffs, and they're not allowed to pretend that they are. If you allow them into your home, they are not allowed to take any of your possessions. Bailiffs have more rights when it comes to this: they can enter through an unlocked door or window, and take the possessions that aren't essential for you to live and work. However, a bailiff would only come to your home if a debt collector had tried and failed to reclaim your debt.

If you'd like to know more about debt collectors and bailiffs, click here.

How to avoid bailiffs and debt collectors

Even if you're really struggling with your debt repayments, there are ways to keep debt collectors and bailiffs at bay. Basically, as long as your lenders can see that you are paying as much as you can towards your debts each month, whether that's through your own arrangement or a professional debt solution, they are less likely to get other parties involved.

Some debt solutions, such as an IVA (Individual Voluntary Arrangement), can give you legal protection against your lenders - as long as they agree to the arrangement.

For more advice and information about the debt solutions available to you, ring 0800 195 2911.

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Please remember, this is just an information tool. We would always recommend you speak to a debt advisor for the most appropriate way to resolve your debt problems.

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Related resources

• What can debt collectors not do?
• How do debt collectors find you?
• Will debt collectors come to my house?
• Facing debt collectors? You have rights.
• Who are debt collectors? What can they do?
• Will a debt collector settle for less?
• Who are Bailiffs? What can they do?
• Talking to debt collectors
• When bailiffs are used and what they can take from your home
• Debt management - can it stop the bailiffs visiting?
• Find out if you qualify for an IVA
• The IVA Process

Tags: debt, debt collectors, bailiffs, rights, unsecured debt, IVA

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider. Cards are provided by third parties and are subject to eligibility, status and terms and conditions. Applicants must be UK residents aged 18 or over.