Regulated Debt Collection
Debts that are covered by the Consumer Credit Act are called Regulated debts. It is always worth checking if a debt is regulated or not as it will indicate what rights you may or may not have under a certain agreement.
Debts which are Regulated include:
- Store Finance;
- Credit Cards;
- Payday Loans;
- Certain Alternative Lenders;
- Certain High-Street Lenders;
- Personal Loans;
- Hire Purchase Agreements;
- And More;
Rights under Non-Regulated Debt:
With a debt regulated by the Consumer Credit Act, you have enhanced protections and rights, including:
- Receiving a default notice if you fall into arrears;
- Being given time to bring your account up to date before any further action is taken;
- Ensuring all regulated creditors possess a licence; trading without one is a criminal offence;
- Regular statements being sent by creditors;
- Receiving arrears letters if you fall behind on payments;
- The ability to have the Financial Ombudsman Service investigate your case if you lodge a complaint and are dissatisfied with the outcome;
- Restrictions on the types of court actions some creditors can pursue (such as not being able to pursue an Order for Sale or High Court Enforcement Action);