Debt Collector FCA Rules: Your Legal Rights

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:

• FCA consumer credit regulation - FCA rules
• Consumer Credit Act 1974 - Primary legislation
• FCA consumer credit regulation - treatment of customers in arrears or default

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

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:

CONC 7.9: Contact and Communication #

CONC 7.14: Information on Status of Debts #

You have the right to request:

If they cannot provide these documents, they must suspend collection activity.

What Is Harassment? #

Examples of Harassment (CONC 7.3.4) #

What’s NOT Necessarily Harassment #

Your Rights: How to Manage Contact #

Ask for a reasonable communication channel #

Write to the debt collector:

“Please contact me by post or email rather than telephone. Calls are causing difficulty because [brief reason, if you want to give one]. Please record this as my reasonable communication request under CONC 7.9.4 and explain if you cannot follow it.”

FCA rules require a firm to have regard to a reasonable request about when, where and how it contacts you. This is not an automatic right to prevent every necessary contact, but the firm should consider your circumstances, vulnerability and the proportionality of its approach. Keep a copy and complain if it ignores the request without a good reason.

Request Proof of the Debt #

Write to the debt collector:

“I do not acknowledge this debt and request that you provide:

1. A true copy of the executed credit agreement
2. A full statement of account showing how the balance was calculated
3. Proof that you own this debt (deed of assignment)
4. 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:

1. Complain to the collector in writing
2. Allow 8 weeks for response
3. 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

FCA Rules on Statute-Barred Debts #

Under CONC 7.15:

For many England-and-Wales debts, limitation is a defence to a court claim rather than an automatic cancellation. FCA rules restrict misleading or unfair pursuit of a known statute-barred regulated consumer-credit debt, but court papers must still be answered.

Events that affect limitation #

A qualifying payment or written acknowledgement before limitation expires can restart time for some debts. Section 29(7) of the Limitation Act 1980 says a right already barred is not revived by a later acknowledgement or payment. A new agreement, judgment and Scottish prescription require separate analysis.

Get advice before paying, acknowledging liability or relying on limitation.

FCA Enforcement Actions #

The FCA can take action against debt collectors who breach rules:

Recent FCA Enforcement Examples #

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:

The service is free.

Step 3: Report to FCA #

Report serious or ongoing misconduct:

Debt Collector Contact: Your Rights Summary #

Official Resources #

• FCA Register - Verify company authorisation
• CONC 7 - Arrears, Default and Recovery - Full FCA rules
• FCA consumer credit regulation - customers in arrears or default
• 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 is no universal call-count limit. Frequency, timing, content, circumstances and vulnerability matter. Ask for post or email and explain why; FCA rules require due regard to a reasonable request, although necessary and proportionate contact may continue.

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.