Dealing with Debt Collection Agencies in the UK: A Guide for the Freeman Movement

Debt collection agencies are a persistent challenge for many individuals in the UK, particularly for those seeking to assert their rights under the concepts of “Freeman on the Land” and lawful rebellion. These agencies often purchase debts from original creditors, sometimes raising questions about the legitimacy of their claims and how best to address them.

In this article, we explore how debt collection agencies operate. We will also examine the legal framework surrounding them, and strategies to challenge or avoid paying them.

Understanding Debt Collection Agencies

Debt collection agencies typically act as third parties, attempting to collect unpaid debts on behalf of creditors. Alternatively, they may purchase debts outright from the original creditor, taking ownership of the obligation and seeking repayment directly from the debtor.

Can Debt Collection Agencies Buy Debt? Is This Legal?

Yes, debt collection agencies can legally purchase debts from original creditors. This process is known as debt assignment. In most cases, the assignment is “absolute,” meaning the agency becomes the new owner of the debt.

However, some people argue that when a debt is sold, it has been “paid” by the agency, effectively extinguishing the original obligation. While this perspective aligns with certain interpretations within the Freeman Movement, UK law, doesn’t seem to recognise it. In general, the corrupt courts view the new owner of the debt as entitled to collect the amount owed.

Challenging the Legitimacy of Debt Collection Agencies

Before addressing any debt claim, it is essential to verify its legitimacy. So, here are steps you can take:

1. Request Proof of Debt

Under UK law, debt collection agencies must provide clear evidence of the debt they are pursuing. You can send a “prove-it” letter asking for:

• A copy of the original credit agreement.
• Evidence that the agency owns the debt (deed of assignment).
• A detailed breakdown of the amount owed.

If the agency cannot provide this information, they have no legal basis to pursue the debt.

2. Verify Compliance with the Law

Debt collection agencies must comply with the Consumer Credit Act 1974 and the Financial Conduct Authority (FCA) guidelines. Check for any breaches, such as:

• Failure to provide proper documentation.
• Misrepresentation or harassment.
• Attempts to collect statute-barred debts.

If you identify any violations, you can report the agency to the FCA or Financial Ombudsman Service.

3. Challenge the Assignment

Ask the agency to provide the deed of assignment that transferred the debt. This document must clearly outline the transfer terms and confirm that the agency has legal ownership. If they cannot produce it, the claim may be unenforceable.

Dealing with Debt Collection Agencies

Here are key steps to manage interactions with debt collection agencies:

1. Stay Calm and Document Everything

Avoid engaging in emotional or aggressive exchanges. Keep all communication in writing to maintain a record of interactions.

2. Do Not Acknowledge the Debt Immediately

Acknowledging a debt resets the statute of limitations, potentially making an otherwise unenforceable debt collectible. Instead, ask for proof and take time to evaluate the claim. This is very important, you must drag it all out until you have all the information, but never admitting liability at any time.

3. Understand Your Rights

The FCA’s rules prohibit:

• Harassment or undue pressure.
• Misleading information about legal consequences.
• Contacting you at unreasonable times.

If you believe your rights are being violated, take immediate action by filing a formal complaint.

4. Negotiate if Necessary

If the debt is legitimate and enforceable, consider negotiating for a reduced settlement. Indeed, agencies often purchase debts at a fraction of their value and may accept partial payment.

Avoiding Payments to Debt Collection Agencies

For those who wish to legally avoid paying debt collection agencies, the following strategies can be effective:

1. Identify Statute-Barred Debts

Under the Limitations Act 1980, most unsecured debts in the UK become unenforceable after six years if:

• No payments have been made.
• The debt has not been acknowledged in writing.

Write to the agency to inform them the debt is statute-barred and demand they cease contact.

2. Check for Improper Practices

If the agency fails to follow proper legal procedures, their claim may be invalid. Therefore, use this to challenge the debt and halt collection efforts.

3. Use the “Prove-It” Letter Strategy

Demanding proof often exposes gaps in the agency’s records, especially for older debts. Indeed, without sufficient evidence, the debt may be unenforceable. Before you pay, if ever, drag procedures out all the way.

In other words, you need to see everything in writing to get a clear picture. Of course, you should only take the decision to pay them after you exhaust every avenue. They will not like this, but you have rights!

Should it end up in court, you need to show that you have been acting in honour and willing to communicate with them. However, once you show the court that they are at fault, things could tip in your balance.

4. Bankruptcy or Insolvency Options

For individuals overwhelmed by multiple debts, formal insolvency procedures such as bankruptcy or an Individual Voluntary Arrangement (IVA) can provide relief. However, these options come with significant consequences. So you should carefully consider your options.

5. Explore Freeman on the Land Defences

Advocates of the Freeman Movement often argue that contracts require consent and that many debts lack a lawful basis. While these arguments resonate within the movement, they are rarely upheld in court.

However, some of us have been successful. So it is possible to win. That being said, most can’t reach a satisfactory result due to lack of knowledge and confidence. Use your new-found knowledge cautiously because there may be a legal pushback. Remember also that the courts, with their legalese crap, are designed to win you!

Legal Protections and Support

If you’re struggling with debt, seek support from organizations such as Citizens Advice, StepChange, or the National Debtline. They provide free guidance and can help you navigate complex debt situations. We have to add that bit because some people back out at the first sniff of “trouble”.

Conclusion

Dealing with debt collection agencies requires a firm understanding of your rights and the legal framework. By challenging the legitimacy of claims, asserting your rights, and exploring lawful strategies, you can effectively manage or even avoid paying these agencies.

The Freeman Movement’s perspective on the extinguishment of debt through sale may not align with conventional legal interpretations, but it underscores the importance of questioning the validity of claims. Armed with knowledge and persistence, you can stand your ground against debt collection agencies. Indeed, it can and does work if you get to grips with it!