Debt collectors leaving targets afraid for their lives, poll says

‘Bombarding someone with threats won’t make the situation any better,’ industry boss warns

Half of debtors said they felt they had not been treated humanely by collection agencies (PA Archive)

The aggressive tactics of debt collectors have left four in 10 of their targets fearing for their lives, according to a survey.

A poll of 1,000 adults in problem debt found 50 per cent did not feel they had been treated in a humane way by the businesses they owed money to.

One-third, or 32 per cent, said they had had a “rattling” experience with bailiffs knocking on their doors.

As a result, 52 per cent had had to take out further loans, landing themselves in more debt to keep collectors at bay.

And 46 per cent said this had left them feeling anxious, while 12 per cent felt trapped by the situation.

The research also found having such a negative experience as a customer had seen 21 per cent make a formal complaint to the debt collection company and 18 per cent stop using that business.

More than one in 10 (12 per cent) had left bad reviews online and 11 per cent posted complaints on social media.

The poll was commissioned by Ophelos, a debt resolution company. Its founder, Amon Ghaiumy, said: “With more people than ever falling into problem debt, sometimes for the first time in their lives, businesses cannot afford to ignore the abhorrent behaviour employed by external debt collectors.

“Not only does this worsen the impact of debt on consumers, but in the current cost of living crisis, this unethical approach is what will leave a lasting impression on millions of people.

“The fact is that people are going to blame businesses and lenders for the huge impact that bad debt collectors have on their mental and financial health.

“It begs the question of businesses: how do you want to be remembered when we come out of the recession?

“The actions they take in today’s crisis will be remembered -– and that means they simply cannot let this behaviour become the face of their business.”

The study also found one-quarter of those polled had spoken to friends and family about managing their debt, and 50 per cent had borrowed money from friends in order to pay off loans.

Some 41 per cent have reverted to overdrafts and 40 per cent have turned to family to help.

But a year ago, 40 per cent of respondents did not expect to be in problem debt like they are now – unable to pay household bills, council tax and energy bills.

And 36 per cent said they believed that if nothing changes they would still be in the same situation, if not worse, by this time next year.

It also emerged credit cards, energy bills and rent were where most adults currently had outstanding debt. Nearly one-fifth of respondents (18 per cent) said their salary did not cover their outgoings.

Many fear that energy and water bills, along with food prices, might make it difficult to avoid going deeper into debt.

Amon Ghaiumy added: “It’s becoming more common than ever to be in debt, and it’s not because people are ‘choosing not to pay their bills’ - it’s because they simply can’t.

“It’s outrageous that one in five people are having to go into debt to afford basic necessities like groceries and medication.

“More needs to be done to help those in this financial crisis. Businesses need to better help support their customers through this hugely difficult time rather than letting their debt get worse or spiral out of control.

“Bombarding someone with threats won’t make the situation any better. With the right tools and an empathetic approach, resolving debt doesn’t have to be a scary situation if it is dealt with properly.

“And for individuals, it’s important to always seek support when in debt even if you are unable to pay it off and not suffer in silence – there is always advice or someone out there who can help.”