How to stand up to 'pay up or else' boys

The present economic climate has forced businesses to squeeze hard for payment of their accounts.

What has emerged in recent times is the use of more aggressive tactics that can easily tip over into harassment and unfair practice.

The main culprits have been banks and utility companies.

If you are on the receiving end of such activities, what can you do about it? "The Debt Collecting Merry-Go-Round" explains the law and gives practical advice.

I first turned from poacher to game keeper when I acted for a client from Warminster, who was being hounded by a bank for the payment of a personal loan.

Up to that point, I usually worked for creditors. His family had been long standing clients of Pinniger Finch & Co Solicitors in Westbury, where I practice law, so I decided to see if I could make the bank behave more reasonably.

I felt sympathy for him. He was approaching retirement age, probably had learning difficulties and was working for minimum wages in a local supermarket sweeping the floors.

I did wonder how he obtained a substantial personal loan. I got involved to try and stop the incessant calling of my client, which was many times each day time over a lengthy period.

My client was not seeking to avoid payment but it was apparent he had no means to make more than a nominal payment.

Eventually I had no option but to issue proceedings under the Protection from Harassment Act 1997, seeking an injunction to stop the unreasonable frequency of contact and to get the bank to accept a realistic repayment proposal. Handling the case inspired me to help others in similar situations and was the catalyst for the book.

The book is not intended to help those who have the money to pay what they owe. I have no sympathy for such people. I want to assist those who have a genuine dispute or are in real financial difficulty and want to pay what they can afford.

The merry-go-round will often start rolling with a gentle stream of letters reminding you that a particular debt is unpaid. The temperature then rises with letters threatening that bailiffs will arrive if payment is not made within seven days. The next line of attack will be a string of telephone calls, over weeks or months, which are designed to break your resolve and force you into making payment.

Faced with such a barrage of contact, what should you do? The first step, though easier said than done, is to pause and avoid getting into long telephone conversations with the debt collectors.

At this point, seek advice from your local CAB or come and see me at Pinniger Finch at one of our free legal clinics. Appointing a representative to act for you will take the heat out of the situation. Debt collectors under the Office of Fair Trading (OFT) guidelines must deal with an appointed representative such as the CAB or a lawyer. A failure by debt collectors to abide by OFT rules could result in their Consumer Credit Licence being revoked.

After you set out your position in writing as to why you dispute the debt or have provided evidence to support your repayment proposal, the debt collector should respond to the points raised and either accept the position or if not, they have the option take matter to court.

If they don't take court action but simply return to a barrage of telephone calls and letters, it is then that you should take advice as to whether you could claim harassment under the Protection from Harassment 1997 Act.

This Act, which was introduced to deal with stalkers, can provide a remedy in the form of injunctive relief and damages for anxiety and distress that you have been caused.

The Act states that a person must not pursue a course of conduct which amounts to harassment of another and which he knows or ought to know amounts to harassment of another. So although two or more incidents can be regarded as harassment, the courts will expect such activities to go beyond mere inconvenience and so it must be of a serious nature before you can expect the court to conclude there has been harassment and award a remedy.

If the debt collectors persist with the futile hounding of you after, for example, it is obvious that you do not owe the utility bill because that meter is not the one in your property, then you would have grounds to claim harassment and, as a last resort, you might wish to take legal action to stop the nonsense. Taking legal action is expensive but you may be entitled to court fee exemptions if you have a very low income or are on certain benefits.

Don't expect the courts to be quick at processing claims. Ironically, the under resourcing of the county courts is fuelling the merry-go-round as the courts are in many cases slow and expensive. The Government's answer is to push everybody into mediation.

Mediation is not the answer in these cases; people want, and deserve, a speedy decision so that they can collect the money due to them.