What to expect from your lender when it comes to debt collection.
Expect your lender to:
Treat you fairly and reasonably when collecting debts (this includes the lender’s agent such as a debt collector).
Before debt collection starts, provide key information about the underlying loan, how much you owe, including any additional changes on top of what is owed and what help is available. This is only for loans that are credit contracts and doesn’t apply to collection on debts such as missed rent or utility bills.
Stop debt enforcement action during an application for unforeseen financial hardship or if you have an unresolved complaint about the debt collection itself.
Not mislead you about repossessing goods if the loan is unsecured or by saying they will take court action if they can’t or don’t intend to.
Be prepared to:
Be contacted by the lender or debt collector about what you owe so you can work out your options, for example a repayment plan that’s reasonable for both you and the lender.
Receive information about the debt owing before being asked to pay it. You can also ask for information about the debt owing on a consumer credit contract if that information hasn’t been given to you.
Top tips
You do have an obligation to repay your debts and lenders are entitled to take action to collect overdue payments, but they must follow some legal rules.
If the lender has hired a debt collector and you feel they are treating you unreasonably, you can complain to the lender about them. They should not make you feel threatened or intimidated.
If you dispute the debt because you think the amount is wrong or the debt is not yours, you can ask the lender or debt collector to explain why they believe you are responsible for the debt. They must ensure the information they use is correct. You have the right to make a complaint to the lender or their dispute resolution scheme if you can’t resolve this type of situation with the lender.
