What creditors can and cannot do

What creditors can and cannot do in the UK

Understanding the limits of creditor power can make a huge difference to your stress levels.

What creditors CAN do

• Send letters and emails asking for payment
• Telephone you — but only at reasonable times and frequency
• Apply interest and charges as per your agreement (until you ask them to freeze)
• Pass your debt to a collection agency
• Apply to court for a County Court Judgment (CCJ)
• Apply for a charging order on your home (after a CCJ)
• Apply for an attachment of earnings (after a CCJ)
• Send bailiffs (after a CCJ with warrant)

What creditors CANNOT do

• Force entry to your home for most consumer debts
• Take essential household items (bed, fridge, cooker, etc.)
• Threaten you with criminal action or imprisonment (except council tax non-payment by magistrates)
• Contact you at work if you tell them not to
• Tell your employer, family, or friends about your debt
• Misrepresent their legal powers
• Add excessive charges beyond the original agreement

The most important thing

If a creditor has obtained a County Court Judgment (CCJ) against you, options narrow. A CCJ gives creditors specific legal tools. Act fast:

• Acknowledge any claim form within 14 days
• File a defence or admission
• Try to negotiate — courts often encourage settlement

If a creditor threatens you

Engage with them in writing using our template letters, keep logs of all contact, and escalate to the free debt charities. Most threats are bluster and the law provides genuine protection.