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Debt Collection: Know Your Rights

20 October 2025

Being contacted about a debt can feel overwhelming especially if you're unsure whether you owe the money, how to respond, or what powers a creditor has.

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Whether the debt is small or large, understanding your rights and seeking the right legal advice can make a significant difference.

In this guide, we explain your rights regarding debt collection in England and Wales and outline the legal support available to help you handle the situation confidently.

What Is Debt Collection?

Debt collection is the process of pursuing unpaid money owed by an individual or business. Common examples include unpaid credit cards, utility bills, council tax, or personal loans. It can be carried out by:

  • The original creditor (e.g., your bank)
  • A debt collection agency working on behalf of the creditor
  • A company that has purchased the debt
  • County Court bailiffs or High Court enforcement officers after a court judgment

Each of these parties has different rights and so do you.

First Things First - Do You Owe the Debt?

Before responding, check:

  • Is the debt yours?
  • Is the amount correct?
  • Has it become “statute-barred”? (means a debt is too old for the creditor to take you to court).

For most types of debt in England and Wales, if no action has been taken for six years, the debt may become unenforceable. This doesn’t mean the debt disappears, but you might not have to pay it if the creditor hasn’t acted in time.

You have the right to request proof of the debt. Do not make any payments or admit liability until the creditor or collection agency supplies this.

Your Rights When Dealing with Debt Collectors

If you owe money and are approached by a debt collector, you still benefit from important legal protections:

  • No harassment: Debt collectors cannot call excessively, use threatening language, or mislead you.
  • No forced entry: Debt collectors do not have the same authority as bailiffs and cannot enter your home without consent.
  • Breathing Space: Under the Debt Respite Scheme, you can receive temporary protection from most creditor action while you seek debt advice.

If a debt collector breaches your rights, you can complain first to the organisation, then to the Financial Ombudsman Service.

What Happens If You Ignore the Debt?

Ignoring the situation won’t make it disappear. If a creditor takes legal action, you could be issued a County Court Judgment (CCJ), which may harm your credit history and lead to enforcement measures such as:

  • Deductions from wages
  • Bailiff visits to recover goods
  • Charging orders against property

Early engagement is essential. Even if you cannot pay the full amount, you might be able to negotiate affordable repayments or explore other options.

Bailiffs: What Are They Allowed to Do?

Bailiffs (enforcement agents) act after a court judgment and have greater powers, but must follow strict rules:

  • You must receive notice before they visit
  • They cannot enter your home by force (except for criminal fines or unpaid taxes)
  • They cannot take essential items such as clothing, work tools, or basic furniture

Always check their ID and paperwork. If in doubt, seek legal advice immediately.

Legal Support and Advice

Facing debt doesn’t mean facing it alone. Help is available:

  • Legal Aid: In some cases (e.g., eviction or serious enforcement), you may qualify for legal aid.
  • Solicitors and Legal Clinics: For complex disputes or aggressive enforcement, professional legal advice is vital.
  • Breathing Space Scheme: Your adviser can initiate a 60-day legal pause on most debt recovery actions.

Debt can feel like an uphill battle, but help is out there, and you have more rights than you might think. Don’t ignore the situation. Check the facts, understand your rights, and reach out for legal support early. Acting now is the first step toward regaining control.

Ready to recover what you’re owed?

Don’t let unpaid invoices hold your business back. Contact us today for expert debt recovery solutions tailored to your needs. Call us now on 01202 294411 or visit our website to get started!

 

Further Information
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