Harassment

Creditors have the power to collect their lawfully due debts. However, they are not allowed to harass debtors in the process.

Conduct used by creditors or collection agencies which causes upset or distress could constitute “harassment”.

The Protection from Harassment Act 1997 Section 8 provides that individuals have the right to be free from harassment and while this is not a statutory offence in Scotland, debtors could still raise a civil action. Advisers could also quote the Act when dealing with creditors. 

The Financial Conduct Authority (FCA) have also dealt with this in their Consumer Credit sourcebook (CONC) which gives rules that FCA expect creditors to adhere to;

CONC 7.9
• Contact with customers
• Communication with third parties
• Debt collection visits

CONC 7.10
• Treatment of customers with mental capacity limitations

Advisors should refer to the FCA rules to judge whether creditors or collection agencies are adhering to them.  Non-compliance with the rules is a serious matter and could ultimately risk an agency's FCA authorisation; without which, they would not be allowed to trade.    

Advisers should try to find a resolution with the company in the first instance before taking the complaint to the Financial Ombudsman.