Getting letters, calls or visits about a debt can feel overwhelming, but FCA-authorised firms are bound by conduct rules in the Consumer Credit sourcebook (CONC), chapter 7. These apply UK-wide to authorised lenders, debt collectors and others acting for them. Some entries in the sourcebook are rules (marked R) and others are guidance (marked G), and the sourcebook makes separate reference to procedures in Scotland and Northern Ireland.
Saying who they are and why they are calling
CONC 7.9.1R requires a firm to ensure anyone contacting you on its behalf explains who they work for, their role or relationship with the firm and the purpose of the contact. CONC 7.9.2R says a firm must not make a statement that may induce you to contact it while misunderstanding the reason. Guidance gives an example: a calling card left at your address that implies you missed a delivery.
When and how contact can be made
Firms must not contact customers at unreasonable times and must pay due regard to reasonable requests about when, where and how to contact them, for example from people who work shifts (CONC 7.9.4R). They must not require you to call a premium-rate or special-rate number that costs more than a standard geographic number (CONC 7.9.5R).
Keeping your debt private
CONC 7.9.6R says a firm must not unfairly disclose, or threaten to disclose, information about your debt to a third party. CONC 7.9.7R requires a firm to avoid acting in a way likely to be publicly embarrassing and to take reasonable steps so third parties do not learn you are being pursued. Guidance (CONC 7.9.8G) suggests, for example, marking post “private and confidential” and not showing a debt-collection name on an envelope. CONC 7.9.10R says a firm must not disclose details of a debt to someone without first establishing that they are, or act for, the borrower, and guidance (CONC 7.9.11G) says threatening action against the “occupier” of premises or sending demands to everyone sharing a name and date of birth or address is likely to breach that rule.
Guidance (CONC 7.9.9G) adds that the privacy rule would not stop a firm sending a statutory notice to your last known address, provided it takes reasonable steps such as those above to avoid third parties finding out.
Visits to your home
Unless it is not practicable, a firm must ensure a person visiting explains the purpose and intended outcome and gives adequate notice of the date and likely time at a reasonable time of day (CONC 7.9.12R). CONC 7.9.14R says visitors must not act in a threatening manner, visit when they know or suspect you may be particularly vulnerable, visit an inappropriate location without your consent, enter your property without consent or an appropriate court order, refuse to leave when reasonably asked, or visit or threaten to visit without your agreement when a debt is deadlocked or reasonably queried or disputed. Guidance (CONC 7.9.15G) says it would normally be inappropriate to visit someone at work or in hospital as a patient.
False claims about authority and legal powers
CONC 7.11.1R says a firm must not misrepresent its authority or its legal position on the debt or recovery process. Guidance gives the example of claiming to be a bailiff acting on court instructions when that is untrue. Other rules prohibit official-looking documents likely to mislead about the firm’s status (7.11.3R), falsely claiming trade-body membership or accreditation (7.11.4R), suggesting action can be taken when legally it cannot (7.11.6R), claiming proceedings for a warrant of execution or attachment of earnings before a court judgment has been obtained (7.11.8R) and claiming an action has been taken when it has not (7.11.9R). Guidance examples include implying bankruptcy proceedings where the debt is too low to qualify, and claiming a right of entry without a court order.
Guidance (CONC 7.11.5G) also reminds firms that it is an offence under section 17 of the Legal Services Act 2007 to falsely imply that someone is entitled to carry on a reserved legal activity, such as conducting litigation or appearing before a court, or to use a title such as “solicitor” without entitlement.
FAQs
Can a collector visit me at work?
CONC 7.9.15G says it would normally be inappropriate to visit a customer at their place of work, or at a hospital where they are a patient.
What if I dispute the debt?
CONC 7.9.14R(7) says a visitor must not visit or threaten to visit without your prior agreement when the debt is deadlocked or reasonably queried or disputed, and points to CONC 7.14 on settlements and disputed debt.
Where can I get help?
CONC 7.3.7AG says firms should point customers in arrears to free, impartial debt advice from not-for-profit bodies, such as through MoneyHelper. Independent advice is a sensible step whatever the collector says.
Bottom line
The FCA’s rules require debt collectors and lenders to identify themselves, avoid misleading or embarrassing tactics, respect reasonable contact requests and never overstate their legal powers. If contact you receive does not fit these rules, keep a record of dates, names and wording and take free debt advice before responding. This is general information, not legal or financial advice.