Protecting Your Rights as a Creditor: Important Legal Considerations in Debt Collection - Cobra Financial Solutions Ltd

No-nonsense, straight-talking debt collection service

Regardless of how eager you are to collect a debt, you need to consider what you can and cannot do legally. As a creditor, there are regulations and limitations in regards to how you can collect a debt. This is why a lot of creditors choose to enlist the services of a debt collection agency, such as Cobra Financial, to ensure all regulations and legal considerations are followed.


Debt Collection Regulations for Creditors in the UK

  • You Have to Prove the Debt – In order to collect a debt, creditors – or the debt collection agency working on your behalf – has to prove that the debt is owed. Without this proof, you won’t be able to collect the debt.


  • You Can’t Go to a Debtor’s Home or Workplace – Creditors and collection agencies are not allowed to go to a debtor’s home or place of work, nor can you take assets in place of money to repay the debt.


  • You Can’t Harassing Debtors – As a creditor, you can’t harass or intimidate a debtor. This includes contacting a debtor multiple times a day. You are also not allowed to contact a debtor on social media, use threatening language, act aggressively or result in physical harm.


  • You Can’t Add Charges to the Debt – Unless they have been mentioned in the policy or contract, or they have been previously agreed with the debtor, you’re not allowed to add charges to a debt.


  • You Can’t Contact Other People About the Debt – If you’re unable to contact a debtor, you cannot contact their family members, friends, employers or colleagues instead. You are only allowed to speak to the person who owes you the money.


  • You Can’t Pressurise a Debtor – You’re not allowed to pressurise a debtor into doing something, such as convincing them to sell their home or take out a loan to repay the money. You also can’t pressure them into paying the debt in instalments that are unaffordable for them.


  • You Can Only Contact Debtors at Certain Times – Whether you’re chasing a debt yourself or you have enlisted a debt collection agency, debtors can only be contacted at certain times. This is usually between 8am and 9pm, Monday to Saturday.


Of course, there are a lot of things that you can do as a creditor. For example, you can track down a debtor, and you can organise a meeting with them to agree a payment plan. You can contact them via phone, letter, text messages and email, as long as you don’t do so in a harassing way. If you are unable to recover a debt yourself, you can enlist a debt collection agency.


Debt Collection at Cobra Financial Solutions

This is where Cobra Financial comes in. With our experts on hand to help, collecting a debt is a simplified process. You can hand everything over to us and focus on other matters, knowing that your debt collection is in capable hands. Contact us today to find out more.

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