If you’re struggling with debt or have fallen behind on payments, you may have been contacted by a debt collector or a debt collection agency. For many people, this can feel worrying or intimidating, especially if you’re not sure what their role is or what they’re allowed to do.
Understanding what debt collectors are, how they work, and what rights you have can help you feel more in control and make better decisions about how to deal with your debts.
What Is a Debt Collector?
A debt collector is a person or company that tries to recover money that is owed. They may be:
- Working for the original lender (such as a bank, credit card company, or utility provider)
- Working for a debt collection agency that has been hired to collect the debt
- Working for a company that has bought the debt from the original lender
In all cases, their job is to contact you and try to arrange payment or a repayment plan.
It’s important to understand that debt collectors are not bailiffs and do not have the same legal powers.
Why Do Creditors Use Debt Collectors?
When someone falls behind on payments, the original creditor will usually try to contact them first by letter, email, or phone. If the account remains unpaid for some time, the creditor may decide to:
- Pass the debt to a debt collection agency, or
- Sell the debt to another company
This doesn’t change the fact that you still owe the money, but it does change who you’re dealing with.
Debt collectors are used because they specialise in contacting people and setting up repayment arrangements.
What Can Debt Collectors Do?
Debt collectors are allowed to:
- Contact you by letter, email, text, or phone
- Ask you to pay the debt or set up a repayment plan
- Visit your home to ask to speak to you
- Ask questions about your financial situation
They are also allowed to pass information back to the creditor or the company that owns the debt.
What Can’t Debt Collectors Do?
Debt collectors do not have the same powers as bailiffs. They:
- Cannot force entry into your home
- Cannot take your belongings
- Cannot threaten you with immediate legal action
- Cannot pretend to be bailiffs or court officials
- Cannot harass or pressure you into paying more than you can afford
If a debt collector comes to your home, you do not have to let them in and you can ask them to leave.
What’s the Difference Between a Debt Collector and a Bailiff?
This is one of the most common areas of confusion.
A debt collector is simply trying to recover a debt by contacting you and asking for payment. They have no special legal powers.
A bailiff is only involved after court action has taken place. Bailiffs can, in certain circumstances, take control of goods or enforce a court order.
If someone claims to be a bailiff, you should always ask to see identification and paperwork.
How Do Debt Collectors Contact You?
Debt collectors usually start by contacting you in writing. This may be followed by phone calls or messages. In some cases, they may ask to visit your home.
You have the right to ask them to:
- Communicate in writing instead of by phone
- Explain the debt clearly
- Provide proof that the debt is yours
They should not contact you at unreasonable times or in a way that causes distress.
What If You Don’t Recognise the Debt?
If a debt collector contacts you about a debt you don’t recognise, you should not make any payment until it’s been properly checked.
You can ask them to:
- Prove that the debt exists
- Show that they have the right to collect it
- Provide details of where the debt came from
Sometimes debts are very old, or mistakes are made when accounts are sold between companies.
What If You Can’t Afford to Pay?
If you’re struggling to pay, you don’t have to agree to payments you can’t afford.
Options may include:
- Offering a small, affordable repayment plan
- Asking for time to get advice
- Looking at a formal debt solution such as an IVA or Debt Relief Order
If you enter a formal solution like an IVA, debt collectors must stop contacting you about included debts.
Can Debt Collectors Take You to Court?
A debt collector themselves cannot usually take you to court, but the company that owns the debt can.
If a debt remains unpaid, the creditor may:
- Apply for a County Court Judgment (CCJ)
- Then use enforcement methods such as bailiffs or an attachment of earnings
This is why it’s important not to ignore debts and to get advice early. You can get debt help online or speak to our friendly team for a confidential, no obligation conversation. Call us today on 0161 464 0870 and start taking back control of your finances.
