Charging For Debt Collection - UK


Charges should not be unfairly levied.

Examples of unfair practices in the UK are as follows:

a) Claiming collection costs from a debtor in the absence of express contractual or other legal provision

b) Misleading debtors into believing they are legally liable to pay collection charges when this is not the case, for example, when there is no contractual provision.

c) Not giving an indication in credit agreements of the amount of any charges payable on default.

d) Applying unreasonable charges, for example, charges not based on necessary and actual costs.

e) Applying charges which are disproportionate to the main debt.

View more topics on Unlawful Debt Collection Practices in the United Kingdom.

The source of this information was provided from the Office Of Fair Trading at and further information on illegal debt collection practices can be found there. Disclaimer: The above information was written in good faith, but we cannot guarantee accuracy or credit approval.