It feels like my creditors are harassing me, what are my rights?

It is often difficult to know what to do when you feel a creditor is not dealing with your account fairly. If you do not pay, your creditors are allowed to keep reminding you from time to time but they must not act illegally. Many activities could be classed as harassment but this is often difficult to prove. It is important to note that 'anything done by a person which is reasonable' when trying to recover a debt, is not considered to be harassment.

Guidelines have been put together by The Office Of Fair Trading giving guidance on what activities may be considered as harassment and should therefore be avoided by creditors.

Creditors are warned by the Office Of Fair Trading that they should not: -

• Bring unreasonable pressure to bear on you in default of payment

• Falsely claim that criminal proceedings can be brought for non-payment

• Falsely imply that they may legally seize property or take other action without going to Court

• Impersonate a Court or any other official person, by letter or by telephone

• Make nuisance visits and phone calls, or use abusive or threatening language in person, by letter or by telephone

• Leave messages for you to contact someone urgently with no explanation

• Contact you at work, or the customer's employer with intent to create embarrassment and create fear of dismissal

• Wait outside work on payday

• Park outside your door in a vehicle marked 'debt collectors'

• Call on the neighbours, pretending to believe the neighbour is you

• Send insufficiently addressed postcards

You cannot be prosecuted in the Criminal Court because you have not paid a consumer debt, but some creditors may try to make you think you can, this is also illegal.

If you feel you are being harassed, you may take the following action:

The first step is to write to the creditor and outline your concerns regarding the company's behaviour. Inform them that you are familiar with the terms of the Judgment Enforcement (NI) Order and ask that the creditor take steps to avoid similar occurrences in the future. Make suggestions as to how you would prefer to be contacted by the creditor and ask that they confirm their agreement to this in writing.

However if you do feel the need to make an official complaint regarding a creditor, this should firstly be made to your local Trading Standards Officer. If Trading Standards will not act it may be worth contacting the Office of Fair Trading.

What action can my creditors take against me?

This really depends on the type of debt and agreement that you signed initially. You need to be aware of the consequences of non-payment as for some debts it is much more serious than others. Your priority debts are so called because the ultimate outcome is more severe.

Priority Debts are:

NON-PAYMENT OF THIS	CAN LEAD TO THIS
Mortgage / 2nd Mortgage / Rent	Loss of your home
Secured Loan / Secured Overdraft	Loss of the item given as security. This could be your home
Rates	Attachment of earnings / Deductions from benefits
Magistrates Fine	Imprisonment*
Inland Revenue / VAT	Bankruptcy / Imprisonment*
Gas / Electricity	Pre-pay meter / Disconnection / Large reconnection fee
TV Licence	Fine / Imprisonment*
CSA / Maintenance Orders	Deductions from earnings / Imprisonment*
Existing EJO orders	Committal proceedings

Non-priority debts are:

NON-PAYMENT OF THIS	CAN LEAD TO THIS
Credit / Store Cards	EJO action
Unsecured Loan / Overdraft	EJO action
Hire Purchase	Loss of goods
Credit Sale	EJO action
Loan Shark	Threat of violence
Loan From Family / Friends	EJO action
Catalogue	Not enforceable if you have not signed a credit agreement

*Imprisonment only applies if you wilfully refuse to pay.

What should I do if my account has been passed to a Debt Collection Agency?

Many creditors do not wish to collect reduced payments and often pass accounts to Debt Collection Agencies. The first letter you receive from the agent will be strongly worded and may contain threats of Court action. Don't panic. Make the agent a monthly offer of payment that you can afford and send them a copy of your budget. Start and continue sending the payment to the agent.

What if they're threatening to send a collector to my house?

Few debts are collected by door-to-door agents, as it is expensive for the creditor. If a collector does call make an offer of payment and give the agent a copy of your budget. Smaller regular payments are more effective than larger ones you cannot sustain. If the agent demands a higher payment than you can afford, be firm about the offer you have made. Ask the agent to accept payments by post if this would be better for you than paying at the door.

What should I do? - They want the balance in full

Demands for full settlement are very common. If you do not have the money then you cannot meet this demand. Make a monthly offer of payment to the creditor that you can afford and send them a copy of your budget. Start and continue sending the payments.

What should I do? - I've received a Default Notice

If a creditor intends to transfer an account to a debt collection agency or instigate court action then a Default Notice may be sent to you first. If you have not already done so, make an offer of payment you can afford.

What should I do? - I've received a solicitor's letter

Accounts are often passed to solicitors if Court action is to be taken. It is not too late to make an offer of payment to the solicitor. Send them a copy of your budget sheet. Also, see questions in the Legal section for information about EJO procedures.