If you’ve gotten yourself in a lot of debt and it’s been escalated to a debt collector, don’t panic – there are rules and regulations in place to protect both parties.
There is a difference between debt collectors and enforcement agents (formerly known as bailiffs) – and it’s important to know what these differences are, and the powers that each type has.
For instance, while debt collectors can visit your home, they cannot enter it or collect any goods.
On the flipside, an enforcement agent can do both – and will, if you ignore contact with them. This doesn’t mean that they can take anything, but we’ll get to that.
Let’s look at debt collectors first.
How far are debt collectors allowed to go?
Debt collectors can work for the company you owe money to (known as a creditor) or for a debt collection agency.
They’re sometimes also known as field agents.
According to StepChange, a debt charity, they can contact you to discuss your debt, organise payment arrangements and request payments from you.
They are not allowed to discuss your debt with anyone other than you – including family, friends or neighbours – nor can they come to your place of work for any reason, meaning you’re not at risk of your colleagues or manager finding out details about your financial situation.
‘It all depends on the kind of “debt collector” – there are a couple of types and they have different powers,’ Rick Smith, managing director of Forbes Burton, a company rescue and insolvency specialist, tells Metro.co.uk.
‘A debt collector has quite limited powers and can’t really do much. What’s important to remember is that they’re not allowed to break in or take goods and if you ask them to leave they have to go.
‘They are definitely not allowed to bully or harass you under any circumstances. They also can’t call you on the phone repetitively, use obscene language, or threaten you.
‘If they do you can actually complain about them to the person you owe money to and the relevant governing body.’
It is also a criminal offence for a debt collector to pretend to be an enforcement agent. Whether a debt collector or enforcement agent visits your door, you should always ask to see ID and write down their name.
You don’t need to pay them right then and there, and you don’t even need to open the door to a debt collector.
However, just because you don’t have to open the door, that doesn’t mean the debt goes away – don’t avoid the conversation. It’s better to have a chat with the debt collector and discuss your situation, so that it can be resolved and you can explain your budget to them.
And remember – if you do make a payment to them during a visit, get a receipt and be aware that they might come back for further repayments.
You don’t have to do have this encounter on your doorstep. Contact the creditor and tell them that you prefer to communicate via phone, email or letter, if you prefer.
How far are enforcement agents allowed to go?
The main difference between debt collectors and enforcement agents is that the latter have legal power.
How far an enforcement agent can go to claim payment from a debtor (the person who owes the money) depends on the court order placed on the case – which can come from the High Court, County Court or magistrates’ court.
County Court enforcement agents can collect most kinds of debts that individuals or businesses owe, but only once they have the County Court Judgement (CCJ) and if you have not paid the money you owe, according to Step Change.
Meanwhile, other enforcement agents can also visit you to claim payment for funds owed to the Government or local authority. HMRC doesn’t need to get a court order to send an enforcement agent to your house.
However, they must send a letter advising you of their visit first, to give you a chance to pay off the debt before then, if you’re able to do so.
Cathal McCabe, a lawyer at Downs Solicitors, who previously worked as a county court advocate for Ashley Taylors Legal where he dealt with possession claims and debt claims, explains:
‘The question of how far an enforcement agent can legally go depends on the court order that has been made and the parties that are instructed to enforce the debt.
‘High Court enforcement officers will usually have a greater authority than bailiffs, to enter your home, access land and access buildings linked to the debtor.
‘Generally the enforcement agent will be able to retrieve goods with the view of settling the debt.’
However, there are certain goods that even enforcement agents are not allowed to take:
Goods that enforcement agents can’t take
- Any items that are essential for basic domestic needs of the defendant and their family
- Any goods that constitute ‘tools of the trade’, which are for the personal use of the defendant in their profession and that have a maximum value of up to £1,350, e.g. tools, books, vehicles and other equipment
- Goods which belong to someone other than yourself, known as ‘the Third Party’
- Items that are on hire purchase agreements, or are leased or on rental agreements, such as cars
- Goods that have already been seized by any other high court enforcement officer, enforcement agent or county court bailiff
- Perishable items
Source: Cathal McCabe
Examples of household items that enforcement agents can’t take
- A cooker or microwave, a fridge and a washing machine
- A landline or mobile phone
- Beds and bedding for everyone in the house
- A dining table and enough chairs to seat everyone in the house
- Appliances to heat and light your house
- Medical or care equipment
Source: StepChange
If you’re in debt and having trouble with repayments, it is best to tackle this head-on, starting with speaking to the debt collector or creditor that you owe money to.
By doing this, you reduce the risk of them sending an enforcement agent to your house.
There is also support available to you to help you cope with debt problems that you may want to take advantage of.
What should you do if an enforcement agent comes to your house?
An enforcement agent cannot force their way inside your home and if you feel uncomfortable with their gender, you can request a female or male enforcement agent specifically by contacting them ahead of the visit.
Furthermore, if there is no adult over 16 years inside the house, they cannot enter.
There are also set times that they are allowed to visit: 6am to 9pm.
Citizens Advice recommends not letting the enforcement agent into your house, and instead chat to them outside, through the door or over the phone.
What’s more, it is suggested that you lock doors and windows, as enforcement agents cannot force their way in if these are locked.
There is one exception to this rule: if you owe a criminal fine, they are within their right to get inside by getting a locksmith, but this is rarely enforced.
Finally, under no circumstance can enforcement agents or debt collectors threaten or bully you.
If either party physically threatens you or anyone in your home, call the police and do not let them in.
Debt Month
This article is part of a month-long focus in November all about debt.
Scary word, we know, but we’re hoping if we tackle this head on we’ll be able to reduce the shame around money struggles and help everyone improve their understanding of their finances.
Throughout November we’ll be publishing first-person accounts of debt, features, advice, and explainers. You can read everything from the month on the Debt Month tag.
If you have a story to share, a topic you want us to cover, or a question that needs answering, get in touch at MetroLifestyleTeam@Metro.co.uk.
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