It’s time to put a stop to the debt threats
FAR too many vulnerable people are at risk because of antiquated legislation that all but forces companies to bully them.
A new campaign by the charity, The Money and Mental Health Policy Institute, which I am proud to have founded in 2016, and still chair, is campaigning to change the law.
IT’S NOT ‘ONLY MONEY’
FINANCE is a wellbeing issue. You are four times more likely to be in debt crisis if you have a mental health problem.
New research we’ve done, based on analysis of the NHS’S Adult Psychiatric Morbidity survey, reveals that 100,000 people in debt attempt suicide each year and those in debt are three times more likely to have considered suicide than others.
CHANGES NEEDED:
■ Debt threat letters need to stop: The Consumer Credit Act 1974 requires companies sending letters to people struggling to repay debts to include the following text in capitals or bolded:
IF YOU DO NOT TAKE THE ACTION REQUIRED BY THIS NOTICE BEFORE THE DATE SHOWN THEN THE FURTHER ACTION SET OUT BELOW MAY BE TAKEN AGAINST YOU (OR A SURETY).
Money and Mental Health is calling on the Government to change these rules, to make letters easier to understand and signpost people to help.
If you agree, go to moneyandmentalhealth.org/ debtthreats and sign the petition supporting this. ■ Regulation of debt enforcers and bailiffs: There is guidance on how they should behave, but they’re not independently regulated.
Reports of threatening and unlawful behaviour persist.
We need independent regulation of bailiffs by the Ministry of Justice to protect those in acute distress from aggressive collections.
STRUGGLING TO COPE?
IF YOU need help with suicidal thoughts, contact the Samaritans on 116 123.
If you’re worried you or someone else is in immediate danger, call 999. ■ Get free one-on-one help: Contact a non-profit debt agency such as citizensadvice. org, stepchange.org or nationaldebtline.org.
Contact capuk.org for emotional support as well. ■ Know your bailiff rights: They can’t turn up at your door without sending a letter first. In most cases they can’t force their way in.
If they turn up, stay calm and don’t be intimidated. They rarely take goods the first time they come. If they get aggressive, call 999.
If they are collecting unpaid court fines, or if you haven’t paid what you agreed on the first visit they can use a locksmith for entry. They should show you a court warrant for this. ■ Sort through your finances: If you’re struggling to budget, look for a bank account or an app that will let you split your money into separate ‘piggybanks’ (like monzo.com or squirrel.me).
Also, check you’re claiming all the benefits you’re entitled to at mind.org.uk and entitledto.co.uk
■ Martin Lewis is founder and chair of Moneysaving Expert. com. Go to moneysaving expert.com/latesttip for his free money tips weekly email.