There is no doubt about this area of debt consolidation and collection that it is indeed most controversial. Where and how does a legitimate well managed debt programme slide into the murky world of illegitimate threats and debt harassment?
 

UK – Consumer Credit Act 1974 http://www.oft.gov.uk/Business/Legal/CCA/default.htm 

The Administration of Justice Act 1970 (Section 40)
http://www.swarb.co.uk/acts/1970AdministrationofJusticeAct.shtml 

The Protection from Harassment Act 1997
http://www.opsi.gov.uk/acts/acts1997/1997040.htm 

USA – Fair Debt Collection Practices Act http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm 

The bottom line as in all cases is that it is a CRIMINAL offence if a Creditor or their Agents contravene any of the above relevant acts and that contravention causes the debtor or their family alarm, distress or humiliation. Specifically, harassment is a criminal offence under section 2 of the Protection from Harassment Act 1997 and if convicted, the transgressor could be liable to six months imprisonment and/or a level 5 fine (up to £5,000 fine).

In part two of this series we will go into the above legislation and the practical ramifications in more detail but let me stress here and now that this series is not all about trying to coach people into debt avoidance. The principle of Credit and Debt is as old as time itself and to act as some form of proponent for the abolition of one of the corner stones of Capitalism and the Free Market Economy would be nothing more than economic suicide and highly irresponsible but there comes a time when as far as some individuals are concerned, enough is enough.

As Shakespeare said “To err is only human, to forgive divine”, well I am not trying to imply that all types of successful debt consolidation rely upon divine intervention (though there is many an Insolvency practitioner who would concur that some Individual Voluntary Arrangement applications would need divine intervention to make them succeed) rather that we consider why it is that some of the less fortunate amongst us have difficulty in dealing with their debts.

The really intriguing aspect of all of this is that the profile of those who are now filing for either Bankruptcy or an IVA is changing almost daily. Gone are the old fashioned stereotypes and welcome to the world of everybody. Today a news item reported rather tragically of a UK Student who took his own life because his bank was not prepared to help him with a £1200 overdraft facility.

“The Debtors they are a changing” (apologies to Bob Dylan) and so must be the way that we deal with them.