Third Party Debt Collection

Third Party Debt Collection

Many debtors over recent years because of the economic climate have been unable to honour their agreements as far as debt is concerned. It is the creditor�s duty to pursue the debt, however most creditors take advantage of the debtor�s predicament to benefit themselves. They engage in practices that may at times infringe on the rights of debtors. This was the logic behind the forming of the Office of Fair Trading.

The Office of Fair Trading (OFT) is responsible for making sure that third party collection is fair to both sides. They issue creditors with Consumer Credit Licences so as to enable them to legally lend money to their customers. The OFT makes sure that the creditors do not infringe the rights of the debtors or else they risk losing their Consumer Credit License without which they cannot operate.

As pointed out earlier the real situation is however that most creditors engage in unlawful practices as they pursue debt. The debtors in these cases cannot report this as they have no knowledge of their rights in third party collection. The fact is debt is not a crime and no matter how much your owe anybody you are still entitled to your rights as a citizen. There are guidelines stating the right conduct of any creditor and debt collector.

Third Parties

When debtors are unable to pay they sometimes seek the help of a third party to help them in negotiating the repayment of the debt. These third parties are normally debt management companies or debt collection agencies whose personnel help the debtors with the negotiations.

When a debtor chooses to use the services of a third party it is the obligation of the creditor to comply with them. If they do not comply they would be breaching the guidelines set by the OFT. The creditor can refuse to deal with a third party if they can prove that the third party is not acting in the best interest of the debtor.

Debt Collection Visits

It�s very important that you know that it is illegal for a creditor or any third party collector to visit you at your home or at your workplace without your consent. The creditor must notify you of his visit to give you time to seek advice or support. If a debt collector does come to your home without your consent it is your right to ask them to leave. Moreover any third party collector isn�t allowed to come to your workplace at all for a personal debt, they are only allowed to come if it is a business debt.

If a creditor fails to contact the debtor concerning the debt for a period of more than so years then the debt is said to be statute barred. This means that the creditor cannot take any legal action against the debtor.

Rules concerning communication between the debtor and the creditor or any other third party collector must be adhered to. A debt collector must state who they are and what they want at the time they contact the debtor. They must also not attempt to use technical language to confuse the debtor.

Third party collection rules requires the creditor to desist from contacting the debtor when he/she is vulnerable or sick because of his predicament.

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