Harassment by creditors - StepChange Step Change

Harassment in debt collection occurs when creditors or debt collectors use aggressive, unfair, or deceptive tactics beyond standard debt collection practices. In the UK, laws like the Administration of Justice Act 1970 and the FCA Consumer Credit Sourcebook (CONC) set clear rules to ensure debt collection is handled fairly and responsibly.

The Financial Conduct Authority (FCA) describes harassment as any behaviour that feels unreasonable, oppressive, or causes distress to the debtor. It's important to remember that what one person considers harassment might be different for someone else. Contact that feels acceptable to one individual could be seen as too much by another.

Recent research indicates that people with mental health problems are especially vulnerable, with 52% of those in utilities arrears experiencing mental health issues. This makes them more vulnerable to the psychological effects of aggressive debt collection practices.

Financial Conduct Authority Consumer Credit Sourcebook (CONC)]

All debt collection agencies, creditors, banks, and law firms involved in consumer credit must adhere to the FCA's Consumer Credit Sourcebook (CONC). These entities must be FCA-authorised and are required to:

• Treat customers fairly and with respect
• Provide clear and accurate information
• Allow reasonable time to repay debts based on individual circumstances
• Avoid oppressive or deceptive practices

Administration of Justice Act 1970

Under Section 40 of this Act, it's a criminal offence for creditors to harass debtors. Violations can result in fines of up to £5,000 in magistrates' court, and while successful prosecutions don't automatically affect FCA authorisation, convicted firms may face separate regulatory action by the FCA regarding their fitness to hold authorisation.

The Consumer Duty 2024

The FCA's Consumer Duty, which came into full effect in 2024, has significantly strengthened consumer protections. It requires debt collection companies to:

• Act in consumers' best interests and prevent harm
• Communicate clearly and transparently without jargon
• Consider consumers' vulnerabilities and circumstances
• Ensure skilled and knowledgeable staff handle debt collection

Excessive Contact and Communication Violations

SIGN #1 - Multiple Daily Contacts
Although there is no fixed legal limit on daily calls or texts, repeatedly contacting you multiple times per day in a manner that feels like stalking can be considered harassment. The Financial Ombudsman Service assesses factors such as the frequency and timing of the contact, along with your personal situation, to decide whether the contact is excessive.

SIGN #2 - Inappropriate Contact Hours
Calling at any hour outside 6 a.m. to 9 p.m. is regarded as harassment. As a general guideline, acceptable contact times align with bailiff working hours. Anything beyond this period is typically deemed unacceptable.

SIGN #3 - Social Media Contact
Debt collectors are not allowed to reach out to you through social media, whether by direct messages or public posts on your pages. They are required to use only official channels such as mail, phone, or email.

Financial Pressure and Coercion Tactics

SIGN #4 - Pressure to Borrow or Sell Assets
Under CONC 7.3.10, creditors aren’t allowed to pressure you into borrowing money or selling your property to cover debts. This means they can’t suggest you take out loans, increase your current borrowing, or sell your home. Such advice can make your financial situation worse and is completely against the rules.

SIGN #5 - Unreasonable Payment Demands
Debt collectors cannot pressure you to pay amounts you cannot afford or demand full payment within unreasonably short timeframes. Under FCA rules, they must consider your individual financial circumstances and accept reasonable payment proposals.

Deceptive and Misleading Practices

SIGN #6 - Fake Legal Documentation
Some debt collectors use misleading tactics to make debts appear more serious, including:

• Using logos similar to court logos.
• Creating documents that resemble court papers.
• Falsely implying legal action has been taken.

SIGN #7 - False Legal Threats
Debt collectors are not allowed to make false statements about legal consequences, such as:

• Claiming bailiffs will visit without court orders.
• Claiming a County Court Judgment (CCJ) exists when none has been issued.
• Misrepresenting their legal authority

SIGN #8 - Prison Threats
Stating that you could face prison for debt is harassment and entirely incorrect. In the UK, you cannot be jailed for owing money to creditors or debt collectors, except in very rare cases involving government debts.

Professional Misconduct and Impersonation

SIGN #9 - Violence or Threats
Any physical or verbal threats are entirely unacceptable and constitute serious harassment. If this happens, immediately contact the police as your safety is the top priority, then file a formal complaint.

SIGN #10 - Bailiff Impersonation
Debt collectors cannot falsely claim to be bailiffs or court officials. If you're unsure whether someone is genuinely a bailiff, verify their credentials through:

• Certified Enforcement Agent database
• High Court Enforcement Agent Association

SIGN #11 - False Identity Claims
Debt collectors are required to clearly identify themselves and cannot falsely claim to represent courts or other authorities.

Privacy Violations and Third-Party Contact

SIGN #12 - Contacting Family or Third Parties
Your debt situation is confidential. Debt collectors cannot:

• Discuss your debt with family members, friends, or colleagues.
• Ask others to pass messages about your debt.
• Contact third parties without your explicit consent.

SIGN #13 - Public Debt Shaming
Discussing your debt publicly (online, in person, or over the phone where others can hear) constitutes harassment and breaches data protection laws. This includes naming and shaming on social media or discussing details with people who know you.

Procedural Violations

SIGN #14 - Multiple Debt Collectors for Same Debt
Creditors are not permitted to assign multiple debt collectors to pursue the same debt at the same time. Doing so causes confusion and undue pressure, which can be considered harassment.

SIGN #15 - Lack of Proper Documentation
If a debt collector contacts you without the original creditor informing you via a "notice of assignment," this is harassment. You have the right to refuse engagement until proper documentation is provided.

SIGN #16 - Ignoring Debt Disputes
If you've told a debt collector that you don't believe you owe the money, they must stop collection attempts and investigate your claim. Continuing to pursue payment despite your dispute constitutes harassment.

Document Everything

Keep detailed records of all harassment incidents:

• Date and time of each contact
• Method of communication (phone, letter, email, visit)
• Names of individuals you spoke with
• Content of conversations or correspondence
• Witness accounts if others were present

Contact the Creditor Directly

Your first step should be writing formally to the creditor or debt collector:

• Explain your concerns about their behaviour
• Reference specific incidents of harassment
• Mention your awareness of FCA Consumer Credit Sourcebook (CONC) rules
• Specify your preferred contact method and request confirmation

Send by recorded delivery to obtain proof of receipt.

File Official Complaints

If direct contact fails to resolve the issue:

Financial Ombudsman Service (FOS)

• Free service for settling disputes with financial institutions.
• Can award compensation for distress and financial losses.

Average uphold rate of 34% across all financial products in 2024/25.

Trading Standards

• Can investigate criminal offences and pursue prosecutions.
• While a conviction does not automatically cause loss of FCA authorisation, the FCA may review a firm's authorisation if there is a criminal conviction, especially where it reflects on the firm's fitness and propriety.

For a more detailed process, see our article - How to Complain About a Bank or Debt Collection Agency in the UK: Your Complete Step-by-Step Guide

The landscape of debt collection regulation has evolved significantly. With 305,726 new complaints received by the Financial Ombudsman Service in 2024/25 - the highest level in six years - regulators are taking harassment more seriously than ever.

The Consumer Duty has notably enhanced protections by obligating firms to proactively identify vulnerable customers and customise their approach. Recent FCA research found that some firms were not following existing vulnerability guidance, prompting a greater regulatory focus on this issue.

Court cases have also demonstrated that harassment can result in significant compensation awards. In notable cases, consumers have received £7,000 in damages for harassment-related distress and financial losses.

If you're experiencing mental health difficulties, you have additional protections under current regulations. Research shows that people with severe mental illness are four times more likely to be behind on bills and twice as likely to have utilities disconnected.

Debt collectors must:

• Recognise signs of mental health problems
• Provide appropriate support and flexibility
• Avoid practices that could worsen psychological distress
• Allow reasonable time for you to seek advice or support

When harassment is proven, you may be eligible for compensation covering:

• Distress and anxiety caused by inappropriate treatment
• Financial losses from time spent dealing with harassment
• Additional costs incurred due to the creditor's behaviour

Recent Financial Ombudsman Service data shows that firms paid out an average of £201 per upheld complaint in the first half of 2024, though awards can be significantly higher in serious harassment cases.

Proactive communication can prevent harassment:

• Clearly state your preferred contact methods and times
• Request written communication to maintain records
• Inform creditors of any vulnerabilities or special circumstances
• The Real Debt Guy is here whenever you need support.

The Real Debt Guy is a qualified financial adviser and a UK debt expert. The information in this article is considered to be true and correct at the publication date.