Debt collectors in Scotland

Debt collectors in Scotland have no special legal powers. They can contact you and ask you to pay, but they cannot force their way into your home, take your belongings or take money from your wages or bank account. Only sheriff officers can enforce a debt, and only once the creditor has a court decree or a summary warrant. Collectors of consumer credit debts are regulated by the Financial Conduct Authority (FCA) and must follow its rules.

Who are debt collectors?

A debt collector is a firm that tries to recover money for a creditor, such as a lender. Some firms buy debts and then collect them in their own name. Taking steps to get payment of a debt under a credit agreement is a regulated activity, so these firms need FCA authorisation. You can check a firm on the FCA Register.

Scotland has no bailiffs. Enforcement is done by sheriff officers, who are officers of the court. A debt collector is neither.

What can a debt collector do?

A collector can:

• write to you, phone you, email you or text you about the debt
• ask you to pay and discuss a repayment plan
• visit you, if they follow the FCA rules on visits below
• pass the debt back to the creditor, who may decide to go to court

If the creditor goes to court and gets a decree, sheriff officers can then use diligence (legal enforcement), such as a charge for payment followed by an arrestment.

What must debt collectors not do?

The FCA’s rules for consumer credit firms, in its Consumer Credit sourcebook (CONC), set clear limits.

Honesty about who they are and what they can do

• They must tell you who they work for, their role and why they are contacting you.
• They must not misrepresent their authority or the legal position, for example by claiming to act on the courts’ instructions as sheriff officers or messengers-at-arms when that is untrue.
• They must not use official-looking documents designed to, or likely to, mislead you about who they are.
• They must not say action can or will be taken when legally it cannot. The FCA gives examples including threatening enforcement while you are paying through the Debt Arrangement Scheme, or claiming a right of entry without a court order.

Treating you fairly

• They must treat you with forbearance and due consideration if you are in or approaching arrears. That can include reducing or stopping interest and charges, accepting reduced or token payments for a reasonable time, or agreeing an affordable repayment plan.
• They must not pressure you to pay in one go or in unreasonably large amounts, to pay within an unreasonably short time, or to sell your property or borrow money to pay.
• If you tell them you, or a debt adviser, are working on a repayment plan, they must pause active collection for a reasonable period. The FCA says this should generally be 30 days, and possibly a further 30 days if the plan is progressing.
• Where appropriate, they should tell you about free, impartial debt advice.
• They should not take steps to enforce a debt if they know you are in sequestration, a protected trust deed or the Debt Arrangement Scheme.

Contact and privacy

• They must not contact you at unreasonable times, and must pay due regard to reasonable requests about when, where and how you are contacted.
• They must not unfairly tell, or threaten to tell, other people about your debt, and must take reasonable steps to stop others finding out.
• They must not make you call a premium rate number.

Visits to your home

Anyone visiting for a firm must, unless it is not practicable, explain the purpose of the visit and give you adequate notice of the date and likely time. They must not:

• act in a threatening way
• enter your home without your consent or an appropriate court order
• refuse to leave when you reasonably ask, or when it becomes clear you are unduly distressed
• visit when they know or suspect you may be particularly vulnerable
• visit without your agreement when the debt is reasonably disputed

The FCA says it would normally be inappropriate to visit you at work or in hospital.

What if I do not think I owe the debt?

If you dispute a debt on valid grounds, or what may be valid grounds, the firm must pause collection, investigate and give you details of the debt. Valid grounds include that you are not the person who owes it, the debt does not exist, or the amount is wrong. It is up to the firm, not you, to show you are the right person and the amount is correct, and it must tell you the outcome.

If the debt may be more than five years old, read statute-barred debt in Scotland before you pay anything or write to the collector, because a payment or written admission can restart the time limit.

How do I complain about a debt collector?

1. Complain to the firm first. Say what went wrong and how you want it put right. Keep notes of calls and copies of letters, emails and texts.
2. Wait for the final response. For most complaints the firm has up to 8 weeks.
3. Go to the Financial Ombudsman Service if you are unhappy with the answer or do not hear back in time. You normally have 6 months from the date of the final response. The Ombudsman’s service is free, and you do not need to pay anyone to complain for you.

If the problem is really with the original lender, you can complain to them as well.

How can I deal with the debts themselves?

Stopping bad behaviour does not make the debt go away. If you cannot pay, you have options, from an informal debt management plan to the Debt Arrangement Scheme, a trust deed or sequestration. Each has different costs and consequences, and an adviser needs to look at your full situation. Start with free debt advice in Scotland.

Official sources

• FCA Handbook, CONC 7 (arrears, default and recovery), including 7.3, 7.9, 7.11 and 7.14
• Financial Ombudsman Service: how to complain
• Regulated Activities Order, article 39F (debt collecting)
• mygov.scot: sheriff officer powers and your rights