Dealing with harassment

Many creditors harass clients. Much of this goes unreported and unchallenged and the client may even feel they deserve this treatment. Section 40 of the Administration of Justice Act 1970 defines harassment as trying to coerce a person to pay a contract debt by making demands for payment that are calculated to subject a person to ‘alarm, distress or humiliation, because of their frequency or publicity or manner’.

Harassment can occur in writing or orally. It can include using obviously marked vehicles, calling repeatedly at antisocial hours, or visiting neighbours or places of work. Harassment occurs if a debt collector purports to be enquiring about a person but explains to neighbours why the enquiries are necessary. Harassment might also include posting lists of debtors in public. It includes abusive or threatening behaviour and all acts of violence. Any false representation that non-payment of a debt is a criminal offence, or that a person is a court official or other publicly sanctioned debt collector is also regarded as harassment.

Harassment is not a criminal offence but could give rise to civil action.

Because much debt collection activity takes place verbally over the phone, at the client’s home and sometimes at their place of work, you should always ask how demands were made, exactly what was said, and check all written communication for evidence of inappropriate behaviour.

It is important to take urgent action to protect the client from further contact. Send a letter of complaint immediately, outlining the facts as understood and warning the collector and creditor that, if not resolved to the client’s satisfaction, the complaint will be taken to the next level. In cases of violence or extreme harassment, inform the police and the local trading standards department as soon as possible.

Note: feedback from creditors suggests that some advisers do not act professionally when making complaints on behalf of clients – eg, by using rude, abrupt and sarcastic language. In addition, hearsay evidence is often reported as fact instead of, for instance, ‘our client informs us that…’. The complaint letter should be objective and factual, and not personalised (unless the complaint is about the actions of an identified individual).

Next, advise the client to have no further contact with the collector or creditor until the matter has been resolved. This may involve politely, but firmly, refusing entry to the property or not answering the telephone. You should advise clients that, if they have expressed a wish to the collector or creditor not to be telephoned and that contact should be by letter only, this wish should be respected.

Advise the client to keep a diary recording details of any further attempted collection action. If possible, take practical steps to ensure that the client’s friends, neighbours or relatives know about serious harassment and enquire whether they can provide a safe haven or support to them. Some agencies give clients a sheet of their letterheaded paper and advise them to show this to any collectors or creditors who visit and tell them to contact your agency.