What Debt Collectors Can Do Legally and How to Deal With Them

Perhaps, the look on the faces of people who have had it rough with unregistered or illegal money lender agencies can sum up what they feel about money lenders and their debt collectors.

Although a professional and legally registered money lending company cannot use the loan-shark messenger manoeuvres to collect their pay, there are still some that may resort to underhand tactics. Failure to pay your bill in time or any case of trouble in paying your loans can land you in trouble and the unwanted attention of debt collectors. It is then crucial that you identify the best legal money lender that you can trust. This post shares some light on who debt collectors are, what they can do and how to deal with them.

Who are debt collectors?

Non-paying clients and defaulters cause various companies vast sums of money every year. That is the reason why these companies have devised a way to get back the funds people owe to them. This unfriendly task is most often undertaken by debt collection institutions, hired to act on behalf of the illegal money lender company to go after debtors. A bank may engage a debt collector to go after you if you fail to pay your credit card bills or fail to pay back your loan in time.

What can debt collectors do?

It’s not legal for a legitimate debt collection institution to run after people knocking door after door. However, that doesn’t stop them from employing scare tactics such as banging on your gate, door or window, or putting up banners to show everyone that you are in debt.

As far as possible, legitimate debt collectors will always try to meet the terms of the law. They work under industries code of ethics overseen by the Credit Collection Department of the government. This department is responsible for resolving any disputes between collection agencies and debtors, although they have no obligation or full authority to enforce the code of ethics.

What can’t the debt collectors do?

Vandalism is never allowed. The law will catch up with a debt collector that sprays or paints a property, affixes posters or adverts on a property or damages or steals what belongs to a debtor. These acts are equal to vandalism, and those that commit them are held liable under the law. Also, the law doesn’t allow them to damage or take your belongings. Any form of intimidation and violence is an offence as well.

Causing distress, alarm or harassment by insults, threats or abuse amounts to harassment. You have a right to sue the debt collectors or call the police to throw them out of your property if you feel they have acted against the law their quest to get the debt settled.

How to handle debt collectors

If debt collectors, do not let them intimidate you. If you see any activity that you believe is against the law, do not hesitate to call the cops. Meanwhile, take note that they have a right to act as an intermediary between you and the money lender you owe or your creditors to be precise.

You should always do proper research beforehand to ensure that you borrow money from a reputable money lender that will not resort to underhand tactics.