FCA Rules for Debt Collectors#
Debt collection in the UK is regulated by the Financial Conduct Authority (FCA). This page explains the rules debt collectors must follow and your rights when dealing with them.
Key regulatory documents:
- Consumer Credit sourcebook (CONC) - FCA rules
- Consumer Credit Act 1974 - Primary legislation
- FCA Debt Collection Guidance - FG17/4
Who Regulates Debt Collectors?#
FCA Authorisation#
All debt collectors must be:
- Authorised by the FCA, or
- An appointed representative of an authorised firm
You can verify a company’s authorisation on the FCA Register.
Permission Required#
Debt collectors need FCA permission for:
- Debt collecting - Recovering money owed under credit agreements
- Debt administration - Managing debts for creditors
- Debt purchasing - Buying debts to collect
| Activity | FCA Permission Code |
|---|---|
| Debt collecting | Collecting debts |
| Debt adjusting | Debt adjusting |
| Debt administration | Debt administration |
| Debt purchasing | Debt collecting (as owner) |
CONC 7: The Debt Collection Rules#
The FCA’s Consumer Credit sourcebook, Chapter 7 (CONC 7) sets out detailed rules for debt collectors.
CONC 7.3: Treatment of Customers in Default#
Debt collectors must:
| Requirement | Rule |
|---|---|
| Treat customers fairly | CONC 7.3.2 |
| Not pursue aggressive collection | CONC 7.3.4 |
| Allow reasonable time to pay | CONC 7.3.5 |
| Consider customer circumstances | CONC 7.3.6 |
| Not add excessive charges | CONC 7.3.8 |
CONC 7.9: Contact and Communication#
| What They Must Do | What They Must Not Do |
|---|---|
| Identify themselves clearly | Pretend to be solicitors or court officials |
| State the purpose of contact | Contact you at unreasonable times |
| Respond to requests about contact | Discuss your debt with third parties |
| Respect written-only requests | Use threatening or abusive language |
| Stop calling if you request it | Contact you at work if asked not to |
CONC 7.14: Information on Status of Debts#
You have the right to request:
| Document | What It Proves |
|---|---|
| Original credit agreement | You entered into the debt |
| Statement of account | How the balance was calculated |
| Default notice | Correct default procedure was followed |
| Notice of assignment | The collector owns the debt |
| Statement of current balance | What’s actually owed |
If they cannot provide these documents, they must suspend collection activity.
What Is Harassment?#
Examples of Harassment (CONC 7.3.4)#
| Behaviour | Why It’s Harassment |
|---|---|
| Calling multiple times per day | Excessive contact |
| Calling early morning or late at night | Unreasonable timing |
| Threatening bailiff action without court order | Misleading about powers |
| Discussing debt with family/neighbours | Breach of privacy |
| Using aggressive language | Threatening behaviour |
| Implying criminal consequences for civil debt | Misleading |
| Continuing contact after written-only request | Ignoring reasonable requests |
What’s NOT Necessarily Harassment#
| Behaviour | Why It May Be Permitted |
|---|---|
| Calling once per week | Reasonable frequency |
| Sending monthly letters | Standard correspondence |
| Asking about income/expenditure | Assessing ability to pay |
| Explaining consequences (accurately) | Providing information |
| Contacting after payment arrangement fails | Following up default |
Your Rights: How to Stop Contact#
Request Written Contact Only#
Write to the debt collector:
“I request that all future contact regarding this account be made in writing only. Please do not telephone me. I am exercising my right under CONC 7.9.4 to choose how I am contacted.”
They must comply with this request.
Request Proof of the Debt#
Write to the debt collector:
“I do not acknowledge this debt and request that you provide:
- A true copy of the executed credit agreement
- A full statement of account showing how the balance was calculated
- Proof that you own this debt (deed of assignment)
- Proof of default notice service
Under CONC 7.14, please suspend collection activity until this information is provided.”
Complain About Conduct#
If the collector’s behaviour breaches FCA rules:
- Complain to the collector in writing
- Allow 8 weeks for response
- Escalate to Financial Ombudsman if unresolved
Statute-Barred Debts#
What Is Statute-Barred?#
A debt becomes “statute-barred” after a limitation period if:
- No court action has been taken
- You haven’t made a payment
- You haven’t acknowledged the debt in writing
| Jurisdiction | Limitation Period | Legislation |
|---|---|---|
| England & Wales | 6 years | Limitation Act 1980 |
| Scotland | 5 years | Prescription and Limitation (Scotland) Act 1973 |
| Northern Ireland | 6 years | Limitation (Northern Ireland) Order 1989 |
FCA Rules on Statute-Barred Debts#
Under CONC 7.15:
| Requirement | Rule |
|---|---|
| Must not threaten court action for statute-barred debt | CONC 7.15.4 |
| Must inform you if debt is statute-barred (if asked) | CONC 7.15.5 |
| Must not mislead about legal enforceability | CONC 7.15.3 |
Statute-barred debts still exist legally, but they cannot be enforced through the courts.
Resetting the Clock#
The limitation period resets if you:
- Make any payment (even £1)
- Acknowledge the debt in writing
- Sign a new agreement
Do not make payments or acknowledge old debts without advice.
FCA Enforcement Actions#
The FCA can take action against debt collectors who breach rules:
| Action | Effect |
|---|---|
| Requirement to change practices | Immediate compliance required |
| Fines | Up to unlimited amount |
| Consumer redress schemes | Compensation to affected customers |
| Removal of authorisation | Cannot operate |
| Criminal prosecution | For serious breaches |
Recent FCA Enforcement Examples#
| Year | Company | Issue | Outcome |
|---|---|---|---|
| 2024 | Multiple firms | Unfair treatment of vulnerable customers | Supervisory action |
| 2023 | Debt purchase firm | Misleading arrears notices | £1.2m fine |
| 2022 | Collection agency | Failure to assess affordability | Consumer redress |
Source: FCA Enforcement Decisions
How to Complain#
Step 1: Complain to the Debt Collector#
Write a formal complaint including:
- Your name and account reference
- What happened (dates, times, details)
- Which FCA rules were breached
- What resolution you want
Step 2: Financial Ombudsman Service#
If the collector:
- Doesn’t respond within 8 weeks, OR
- You’re unhappy with their response
Escalate to the Financial Ombudsman:
| Contact | Details |
|---|---|
| Phone | 0800 023 4567 |
| Website | financial-ombudsman.org.uk |
| Post | Exchange Tower, London, E14 9SR |
The service is free.
Step 3: Report to FCA#
Report serious or ongoing misconduct:
| Contact | Details |
|---|---|
| FCA Consumer Helpline | 0800 111 6768 |
| Online | fca.org.uk/consumers/report-scam-unauthorised-firm |
Debt Collector Contact: Your Rights Summary#
| Your Right | FCA Rule |
|---|---|
| Be treated fairly | CONC 7.3.2 |
| Request written contact only | CONC 7.9.4 |
| Request proof of debt | CONC 7.14 |
| Not be harassed | CONC 7.3.4 |
| Not be misled about powers | CONC 7.3.4 |
| Know if debt is statute-barred | CONC 7.15.5 |
| Complain without retaliation | CONC 7.3 |
| Be given time to seek advice | CONC 7.3.8 |
| Have vulnerability considered | CONC 7.2 |
Official Resources#
- FCA Register - Verify company authorisation
- CONC 7 - Arrears, Default and Recovery - Full FCA rules
- FCA Debt Collection Guidance FG17/4 - Best practice
- Financial Ombudsman Service - Complaints
- Limitation Act 1980 - Statute-barred law
- Consumer Credit Act 1974 - Primary legislation
Related Guides#
- Debt Collectors - Individual company guides
- Bailiff Law - Enforcement agent powers
- Breathing Space - 60-day protection
- What Is an IVA? - Stopping debt collection
Frequently Asked Questions#
Are debt collectors regulated by the FCA?#
Yes. Debt collection is a regulated activity under the Consumer Credit Act 1974 and the Financial Services and Markets Act 2000. Debt collectors must be authorised by the FCA or be an appointed representative of an authorised firm. You can check a firm’s authorisation status on the FCA Register.
Can debt collectors contact me at work?#
Debt collectors should not contact you at work if you’ve asked them not to, or if contacting you there would reveal your financial situation to others. Under CONC 7.9, they must respect reasonable requests about contact methods and times. If they continue after you’ve asked them to stop, complain to the Financial Ombudsman.
How often can debt collectors call me?#
There’s no specific legal limit on call frequency, but excessive contact that causes distress is harassment under CONC 7.3. The FCA considers factors like frequency, timing, and persistence. If calls are causing you distress, write to them requiring written contact only. They must comply.
Can I ask a debt collector to prove the debt?#
Yes. Under CONC 7.14, you can request documents including the original credit agreement, statement of account, and proof of assignment (if the debt was sold). The collector must provide this or suspend enforcement. Many debts lack proper documentation, especially older accounts.
What can I do if a debt collector harasses me?#
Document all contact (dates, times, what was said). Write a formal complaint to the debt collector. If unresolved within 8 weeks, escalate to the Financial Ombudsman Service (free). You can also report harassment to the police under the Protection from Harassment Act 1997 in serious cases.
Can debt collectors add interest and charges?#
Only if the original credit agreement permits it. Under CONC 7.5, they cannot add unfair charges. Post-default interest must be in the original agreement. Many collectors stop adding interest once the debt is assigned. Challenge any charges not clearly permitted in your agreement.