"About your outstanding account.."
When you owe money to anyone you may expect that they will try to find out when the debt will be paid, and may exert some pressure to make sure that it is paid as soon as possible.
Larger organisations may have their own departments to pursue outstanding accounts, or debts may be 'sold' to another organisation who specialises in buying and recovering outstanding accounts.
(The original company gets some money immediately instead of having to wait until the debt is paid).
Sometimes larger organisations employ smaller companies on a commission basis to recover debts.
Whether debts are sold or recovered on a commission basis, the next company in the chain may also sell on the debt, or employ a smaller local company to carry out a recovery for them. "This is Credit Control."
If you owe money, even to a nationally known reputable company, you cannot be sure that they are the people you are dealing with when you receive telephone calls or visits in connection with the debt.
You may be dealing with a small local company whose only interest is to collect what they believe is a debt - because they will be paid when some or all of the money is recovered.
A number of our callers have reported 'extreme' methods of debt recovery - repeated telephone calls, arrogant staff demanding immediate repayment in full, and threats of court action. One caller was even bullied into passing a telephone call to her son whilst he was ill in bed. (He owed less than £200 to a finance company).
Others have told us of letters headed 'Court Recoveries Department' which they have assumed were something to do with the local County Court.
Enough is enough
If you owe money it is likely that you owe several companies, not just one. A company trying to make sure that their debt is settled in full before anyone else's claim may try to force you into paying more than you can afford.
If you are under pressure there are four things to remember -
Budget realistically for the income (or benefit) you receive and the payments you have to make to live.
Talk to your local CAB, to us, to the County Court office if there is a genuine court action against you - find out what regular payments you can genuinely afford to settle debts or judgements against you.
When you know what you can pay, stick to it. You cannot pay any more unless you go without food, or heat or rent.
Explain this situation to any telephone caller or to any visitor. If they persist despite your explanation, report the matter to your local Trading Standards office.
Section 40 of the Administration of Justice Act 1970
Under this Act it is a criminal offence to try to coerce anyone to pay a contractual debt in such a way as to cause "harm distress or humiliation" by the frequency publicity or manner of the demands for payment.
Trading Standards offices are obliged to investigate, and if appropriate to prosecute, anyone acting in this way.
The circumstances of each case can be very different, and each must be looked at on its own merits.
A Trading Standards investigation should make any company look into the activities of its staff.
If Trading Standards decide that there is a case to answer, they will prosecute the company or individual involved.
DON'T allow yourself to be bullied.
If you have a serious problem with a debt recovery organisation, report them to Trading Standards. The chances are this is a small firm working for a large national company which may have exceeded its authority.
If so, the national company should bring their debt agency into line very quickly - or the agency may simply be fired for being too aggressive.
"You are not alone"
Some 200,000 people fall into debt each year - don't fall into the trap of being ashamed.
This is what the recovery agencies will be counting on, and in many cases it is a feeling they seem to encourage.
Being in debt is something which happens to a lot of people each year. This is why debt recovery departments exist.
Whatever the reason you have fallen into this position you should still be entitled to feed clothe and house yourself in reasonable comfort.
If there is money left over you may wish to repay some of your debts.
Where there is no money left over you should not have to pay or to worry about anything.
If anyone tries to tell you something different, GET HELP.
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