What is debt collection?

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What is debt collection?
If you have fallen into arrears with money that
you owe then you may well find that your
creditors use some form of debt collection
service to recover their money. Here you will be
actively encouraged to either repay what you owe
or to surrender assets that can be sold to do so
by individuals or by companies. This may be done
after an application has been made in the courts
or on a less formal basis.
Who collects debts?
In general terms there are two types of Debt
collectors that you may come across in this
scenario
1. Bailiffs bailiffs act to collect debts
that have been subject to some form of court
order. So, for example, if you breach the terms
of a CCJ ordering you to repay a debt then the
court can order bailiffs to try and take
possession of your assets to recover the money
that way. Bailiffs can be employed by courts
directly or can be private debt collection
agencies that are used by the courts for this
purpose.
2. Debt Collection Agencies these agencies
are private companies that collect debts on
behalf of their clients. So, for example, if you
fail to make payments on a credit product or a
bill then the company may employ debt collectors
to collect the money on their behalf. This can
also involve the company selling on your debt
to the collection agency. Here, you then owe the
debt collector the money and not the original
creditor.
What can/cant a bailiff/debt collector do?
To be honest people get pretty scared at the
concept of debt collection. There have been way
too many cases of debt collectors harassing
consumers and causing them real stress to recover
money. The problem is, if you are having this
kind of problem for the first time, then you may
not know enough about your rights to manage the
situation well.
But, bailiffs and Debt collectors are legally
bound to act in a certain way. They have to
adhere to fair practices as
laid out by the OFT (Office of Fair Trading). So,
it is important to know what they can and cannot
do in their efforts to recover the money that
they owe. Lets take a look at the basics
Bailiffs ?
Bailiffs and private debt collection agencies do
not all have the same powers and what they can
and cant do will depend on the debt that they
are collecting. Bailiffs generally have more
options open to them legally than private
agencies because they will be working on behalf
of a court. For example, bailiffs sent out by
your local court to recover court fines cannot
force their way into your home when they visit
you for the first time this includes entering
your home after you open the door by pushing past
you or preventing you from closing your door.
They can only enter if you let them in (which you
do not HAVE to do) or if you leave a window open
or a door unlocked. At this stage forced entry is
illegal. If you owe money to the Inland Revenue
and related agencies then bailiffs have more
rights. They can, for example, use a warrant
from a magistrate to break into your home to gain
entry perfectly legally. Bailiffs employed to
evict you because of non-payment of your mortgage
or rent are also allowed to force entry to start
the eviction process.
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Debt Collection Agencies or Debt Collection Agency
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Debt Collection agencies have less leeway than
bailiffs and, for example, can only visit your
home if they
have the necessary license to carry out a
visit. Agencies have no rights to enter your home
and you are perfectly within your rights to
refuse to let them in or to discuss your
situation with them on your doorstep. If you do
let them in then you have the right to ask them
to leave (and to expect them to do so) at any
time.
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Agencies are held to fair practices and cannot
harass you. They are not supposed to make an
excessive number of phone calls or visits, for
example. And, if they call you and leave a
message to call them as soon as you return then
they must explain why and who they are. They also
cannot call you at work, contact your neighbours
pretending that they thought they were you or try
to catch you when you leave work on days when
they know you have been paid. They are also not
allowed to park company vehicles with debt
collection or similar terms written on them
outside of your home. If anything like this
happens to you then this is a case of
harassment. They also should not make false
claims about what will happen to you if you do
not repay what you owe. They cannot, for
example, try to scare you into paying by telling
you that they have the right to take your
possessions without a court order or to take you
to a criminal court when this is not legally
true. Debt collectors cannot pretend that they
are bailiffs.
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Which of my possessions can be taken?
If you agree/have no option but to allow bailiffs
to seize your property to repay what you owe then
you do need to know what they can and cannot
take. They cannot, for example, remove what are
known as essential goods, including
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Clothes Electrical appliances such as cookers and
fridges Most items of furniture Assets/items
which you use for work purposes (i.e. computing
equipment or tools) Bedding
They can, however, remove goods such as
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TVs and non-essential electrical equipment Items
outside of your home such as your car and
anything you have stored in a shed or garage that
is not locked.
In many (but not all) cases you will not lose
property that it not your own. So, for example,
your spouses property will generally be safe
here unless you are both liable for the debt.
How to deal with a debt collection visit
You can negotiate with bailiffs/debt collectors
with a view to sorting out the situation. So, you
could, for example, be given extra time to come
up with the cash you need before your property is
removed or you could come to an agreement that
involves regular repayments. If you feel that
your Debt collectors is acting unfairly then
you should
contact your local Trading Standards Officer to
make a complaint and to get help.
Please visit this locations below for more info
Debt collectors Victoria
Debt collection Victoria
Debt collection Bendigo
Debt collectors Bendigo