Things Debt Collectors Can Do

By: James Abbey, August 25, 2015

Often times there can be a lot of confusion about what a creditor can and cannot do when attempting to collect payment.  Some debtors are afraid that they may go to jail, or be forced to deal with an enforcement agent, once they receive a default notice or miss a payment.  However, while many vendors will take various forms of action when trying to gain payment, there are a set of standards that they must abide by.

When making contact regarding a default on a loan, lenders are allowed to send letters and/or make phone contact, but they cannot call a defaulter every hour, day after day, as that is illegal.  Moreover, they are allowed to send doorstep collectors however, debtors should be aware that these people are not bailiffs and have no more power than the individual who has also been making phone calls.  Additionally, the interest and charges on a specific account can continue to add up during the time the loan is in default.  Furthermore, creditors do have a right of offset.  What this essentially means is that they can take money from connected accounts.  So for example, if the debt is from a credit card and there is a current account with the same bank, they can remove funds from the current account to pay what is owed on the credit card, and they do not need permission from the account holder.

Fix your Debt Today

These are just a few of the items that a debt collector can do.  It is always a good idea to get a free credit report to ensure that any issues are fixed in a quick manner, thereby avoiding having to deal with debt collectors in the first place.