Harassed over debt
Question
A credit company employee turned up at my work place - uninvited - and discussed my loan in full view and hearing distance of my work colleagues and customers. He was demanding money in front of all these people. Was this legal? Is there anything I can do about it?
Answer
It can be unpleasant to find yourself in a position like this. It's never nice discussing the details of your financial situation with colleagues and this sounds like a particularly distressing situation.
If this action was taken by a debt collector from the company you have a loan with, this could be considered harassment and therefore illegal.
Harassment of debtors is a criminal offence in England and Wales under Section 40 of the Administration of Justice Act 1970. Under this act an offence is committed when a creditor or a creditor's agent (such as a debt collection agency):
- Makes demands for payment that aim to cause "alarm, distress or humiliation" to the debtor or their family (this includes the frequency or manner of the demand);
- Falsely implies that criminal proceedings will follow if the debtor doesn't pay;
- Pretends that they are authorised in an official capacity to claim or enforce payment, e.g. that they are a court official or a bailiff;
- Produces documents that look as though they are official in some way if they are not, e.g. send a document to a debtor that looks as though it has been sent from a court.
If you believe that the debt collecting agency has committed an offence your first step would be to write to the company, quoting the fact that their agent has committed an offence under the Administration of Justice Act. In the letter you should also let them know that if this happens again you will have no option but to contact your local Trading Standards Office.
In these cases Trading Standards have an enforcement role and if you believe the company has committed an offence you can report it to them.
You can also seek further advice about the situation and any debts you might have from your local Citizens Advice Bureau (CAB) or National Debtline on 0808 808 4000.
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