Types of Harassment:

Debt collectors are not bailiffs. This is important to remember as some companies can give you a false impression about who they are and will threaten to take away your possessions or may even threaten you (although it is an illegal practice it has been known to happen). A Debt Collector can only ask that you pay the amount, and you don’t have to speak with them if you don’t want to.

These types of tactics are not legal and if you are a victim you should not stand for it! Make sure that you contact the local trading standard office giving them as much information as you can, such as the name of the company and even the person in question and their badge number. If the situation becomes threatening, then call the police straight away.

Dealing With Harassment from Debt Collectors and Bailiffs:

Harassment in this way is a criminal offence and there are several laws and guidelines which cover this type of harassment, and it is important that you are aware of what debt harassment means as well as understanding what your rights are.

Administration of Justice Act 1970

Section 40 of the Administration of Justice Act makes it a Criminal offence for debt collectors to make demands for debt payment frequently or “subject him or members of his family or household to alarm, distress or humiliation”. The debt collector cannot falsely lead you to believe that criminal proceedings will start if you fail to pay it, provide false court documents or pretend that they are bailiffs.

Here is section 40 of the Administration of Justice Act in full:

1. A person commits an offence if, with the object of coercing another person to pay money claimed from the other as a debt due under a contract he-

• harasses the other with demands for payment which, in respect of their frequency, or the manner or occasion of making any such demand, or of any threat or publicity by which any demand is accompanied, are calculated to subject him or members of his family or household to alarm, distress or humiliation;
• falsely represents, in relation to the money claimed, that criminal proceedings lie for failure to pay it;
• falsely represents himself to be authorised in some official capacity to claim or enforce payment; or
• utters a document falsely represented by him to have some official character, or purporting to have some official character which he know it has not.

2. A person may be guilty of an offence by virtue of sub-section (1) (a) above if he concerts with others in the taking of such actions as is described in that paragraph, notwithstanding that his own course of conduct does not by itself amount to harassment.”

The Protection from Harassment Act 1997

Through The Protection from Harassment Act 1997, harassment can be classed as a criminal offence. It is an offence to:

• “Cause harassment, alarm or distress” which must happen on at least two occasions and can be verbal or written.  An example of this type of harassment would include continued calls to your workplace.
• “Cause fear of violence” which again must happen on at least two occasions.

Office of Fair Trading

The Office of Fair Trading have published a guideline of what they deem as harassment by creditors. The following is taken from their Debt Collection Guidance documents which give advice on how debt collectors should treat debtors fairly:

1: “It is unfair to communicate, in whatever form, with consumers in an unclear, inaccurate or misleading manner.” This means that debt collectors should not mislead debtors with documents which look as though they have been issued from the court, give false information, mislead the debtor into thinking they are bailiffs and use confusing legal terms.

2: Those contacting debtors must not be deceitful by misrepresenting their authority and/or the correct legal position.  This means that debt collectors can not give the impression that they work for a court, or imply that action will be taken when it will not such as bankruptcy proceedings.

3: “Putting pressure on debtors or third parties is considered to be oppressive.” This means that debt collectors are not allowed to pressurize you into selling goods, use multiple trading names, ignore disputes, pressurize you to make payments that you cannot afford or make verbal or physical threats.

4: “Dealings with debtors are not to be deceitful or unfair.” This means that debt collectors are not allowed to send letters that are not addressed correctly because they are unsure of the debtors details, refused to deal with appointed third parties and refuse to suspend action if the debt is being disputed.

5: “Charges should not be levied unfairly.” This means debt collectors are not allowed to add any unreasonable charges or claim collection costs where this is not appropriate.

6: “Those visiting debtors must not act in an unclear or threatening manner.” This means that debt collectors should give you full details about when they will visit, leave the property when asked and not to visit at inappropriate locations such as the workplace.

What To Do Next?

If you have debt collectors demanding payment or you are struggling to make repayments in anyway, then you need to get help.

Our Advisors can offer you profesional advice and information about all aspects of debt. And if you are struggling then we might be able to offer you a monthly payment plan that you can afford.

However, contrary to popular belief, a well managed credit card can sometimes be a cheap and efficient way to borrowing money. Serious debt problems will arise when you use your credit card debt to supplement your income. Making those regular, everyday purchases with your credit card, like using it to pay for fuel or the weekly shop, can be a dangerous habit to fall into. If you save your credit card for big ticket items that you’ve already saved and planned for, it can work out to be an efficient way to pay them off.

Shopping around for the best deal can secure a card that offers 0% interest on purchases and balance transfers, which means that you can borrow money without it actually costing you anything – as long as you stick to the terms of the agreement.

There is no denying the extra buying power that a credit card affords you. Be very careful about what you actually decide to do with it though. Buying things you don’t need purely because you can is a big debt danger. Spending irresponsibly can lead to late payments, penalty charges, blotches on your credit report and significant damage to your credit rating. This makes it much harder to secure credit and will tend to result in you paying a higher rate of interest.

If you don’t have a credit card and you’re considering applying for one, don’t go mad with the limit. Just because they’ve offered you a high limit, it doesn’t mean you have to take it. The more you’ve got, the more you’ll be tempted to spend. This is risky because if you struggle to make the payments it can turn into an expensive debt. Making affordable purchases and paying them off quickly is the only way to avoiding paying unnecessary interest.

Of course, Harrington Brooks are always on hand to help anyone who’s experiencing debt problems. Trying to buy your way out of debt with your credit card is never, ever a good idea. If you find yourself in a situation where you feel that the only way to afford your weekly shop, your bill payments or any other regular expenses is with your credit card, you need to talk to a debt specialist before the situation gets any worse. The longer you leave it, the more limited your options will become and the more serious a debt solution will be required to solve your mounting debt problem.

So, credit card debt needn’t necessarily be a problem. It can be a great way to borrow money cheaply but remember that it’s also fraught with potential problems. If you overstretch yourself and your financial situation changes, you could quickly find yourself if financial trouble.

Capital Gains Tax is applied when you sell off a valuable asset. This could be property, shares or other investments. This might not seem to impact too heavily on your finances, if you don’t think that you have significant assets but it’s been suggested that up to a million people will be caught out by this increased rate of tax each year.

The increase in tax aims of to counterbalance and fund the proposed income tax cuts for lower income households. However, as those that hold these valuable assets can decide when and if they want to sell, this increase in Capital Gains Tax could act as a deterrent, taking away any incentive to sell their assets and actually cause a drop in overall economic activity.

Taking a model from other European countries that have gone down this route, it has been estimated that an increase in Capital Gains Tax to 40% would actually result in a total cost to the UK economy somewhere in the region of £3-£5billion. To put it another way, that’s over 60,000 people losing their jobs.

Increasing Capital Gains Tax makes it more expensive for businesses to raise capital. The knock-on effect of this is often a drop in production and as a direct result of that, a smaller workforce. As we know, a sudden change in financial circumstances, like losing your job for example, is a common cause of debt problems. Regardless of the stigma surrounding debt, it is seldom caused by frivolous over-spending and irresponsibility. Getting specialist debt advice as soon as you find yourself in financial strife is key to a smooth, fast acting debt solution. The longer you let the debt go untreated, the more stressful the situation will become and the more limited the debt solutions that will be available to you. Get in touch with an advisor at Harrington Brooks and they’ll talk you through your options.

Ultimately, there was always going to be lasting fallout from the economic crisis and it’s going to affect people in different ways. On the surface, funding a cut in income tax for lower income households with an increase in Capital Gains Tax would seem to be a sensible solution. However, as we’ve seen, this cut in Capital Gains Tax has a knock-on effect that could result in substantial job losses for the workforce that was meant to be served by this drop in income tax. Financial security is about being prepared for these unforeseen eventualities.

The sooner you face up to your financial difficulties and ask a professional for debt help, the more options you’ll have available. There are a number of different debt solutions on the UK market and each is suited to certain circumstances. A financial solutions company, like Harrington Brooks, will have the experience to help you take the right action in tackling your debt problem. As one of the longest established debt help organisations in the country, they have the detailed industry knowledge to advise you of the best option to suit your situation.

Taking Harrington Brooks as an example, an established position of authority will facilitate an excellent working relationship a wide range of UK creditors. Their extensive knowledge helps them to tailor their debt help, giving them the ability to construct bespoke debt solutions for individuals who are struggling with debt.

This kind of intermediary debt help, with an established company acting as broker, makes you and your creditors more comfortable. Both parties have the sense of encouragement that comes from a credible, trustworthy party lending their support.

Debt, after all, is an extremely common problem but it is one which needs an individual solution. You are looking to achieve a swift resolution and your creditors are keen to be repaid as quickly as possible but it’s important that all parties remember that there is no such thing as a quick-fix debt solution. The debt help on offer from a dedicated, trustworthy organisation is comprehensive. It’s about solving your debt problem for life so it needs to be thorough. It will mean compromise and it will take determination but with the right debt help, it’s only a matter of time until you’re debt free.
www.harringtonbrooks.co.uk

In the wake of last year’s festive overspending, more than £7bn worth of credit card debt was transferred between cards as customers searched for a better deal. Transferring your balance for free, in order to take advantage of a lower rate of interest, can help you to solve your mounting debt problem. The rates that are being offered by credit card companies are also a lot cheaper than they were this time last year. So, if you shop around, you can get a good deal. You have to be extremely cautious though. Whenever you are dealing with debt, there are risks and the advertised rates on offer may not tell the whole story. There is always small print.

A lot of attractive balance transfer offers come with a sting in the tail. For example, some will charge interest at a higher rate on any new spending; only giving you the advertised rate on the switched balance. So, you could get 0% on your transferred balance for the introductory period but any new debt will build up interest at an extremely high rate. Also, it’s important that you have either paid off your outstanding debt or you remember to transfer your balance again once the interest-free period runs out. You stand to be hit with a high rate of interest on the remaining balance if you don’t.

There are other debt solutions out there though. If you’re committed to getting your finances in shape and freeing yourself from the burden of bad debt, talk to a specialist debt advisor. Harrington Brooks are one of the longest established and most trusted financial institutions in the UK. Their dedicated team of debt advisors are on hand to help you find the solution that best suits your circumstances. Visit their website and try the free Harrington Brooks debt wizard for a fast and free answer to your debt problem.