What is a debt collector and what can they do in the UK?

A debt collector is a person or company that pursues payment of debts owed by individuals or businesses. In the UK, debt collectors are usually either acting on behalf of an original creditor (like a bank or retailer) or have purchased the debt outright from the original creditor.

Types of debt collector in the UK

• Debt collection agencies: instructed by a creditor to collect on their behalf. The debt is still owned by the original creditor.
• Debt purchasers: companies that buy debts from original creditors at a discount and then collect the full amount themselves. They are now the legal owner of the debt.
• Bailiffs (enforcement agents): different from debt collectors — they have powers to take goods and can only act following a court order.

What debt collectors are regulated by the FCA

Most debt collectors must be authorised and regulated by the Financial Conduct Authority (FCA). You can check any debt collection firm on the FCA Register at register.fca.org.uk. FCA-regulated debt collectors must follow the Consumer Credit Sourcebook rules on fair debt collection.

What debt collectors can do

• Contact you by letter, phone, email or text to request payment
• Sell or assign your debt to another company
• Apply to court for a County Court Judgement (CCJ) if a debt is unpaid
• Charge interest and fees allowed under your original credit agreement
• Report the debt to credit reference agencies

What debt collectors cannot do

• Pretend to be a court official, bailiff or police officer
• Threaten legal action they cannot or do not intend to take
• Contact you at unreasonable times or in ways designed to intimidate
• Contact you at work if you have told them not to
• Pursue a disputed debt without providing evidence of the amount and origin
• Enter your home without permission