Understanding Your Rights and The Rights of Your Creditors.

Although having a debt problem can prove to be a stressful time for many people it is important to understand that there are processes and procedures that can be put in place by organisations such as ourselves in order to bring matters under control and reduce the stress levels associated with personal debt problems.

Your creditors (the organisations that you owe money to) do have debt recovery measures available to them, such as the court system, that they can consider using if they feel that they have not reached a satisfactory repayment arrangement  by the individual that owes them money. In the vast majority of cases however, creditors would much rather reach an informal debt repayment plan in order to start to receive payments towards the debt and also to avoid the administration and legal costs they will incur if they choose to go down the 'legal' road. This is why it is very important to speak with debt help professionals who will be able to advise you of your options and set up a debt repayment plan with your creditors if need be. Its all about acting quickly and striking a negotiated balance with you creditors.

Firstly - Your Right To Feel Good About Yourself.

Being in debt is not a crime. Debt problems effect hundreds of thousands of people every single day in Ireland and being in debt is nothing you should feel ashamed about. The vast majority of people we help have not got into debt on purpose but rather have found themselves facing financial difficulties due to a change in circumstances or have become over committed to credit facilities unintentionally. The Debt Advice Team often speak with clients that tell us 'I am so ashamed' and we aim to quickly advise the client that money worries are very common in Ireland, they are not alone and they have absolutely no reason to feel bad about their situation. We remind our clients that actually, the fact that they have contacted us to help them get on top of their debt problem is to be applauded.

Your Right To Expect Fair and Professional Behaviour From Creditors

Consumer Credit Act 1995
Acting honestly and reasonably is always a good trait when dealing with your creditors. It is important to have an honest rapport with your creditors and to let them know that you are unable to pay your debts to them at the contractual rate that you will have agreed in your credit contract governed by the Consumer Credit Act 1995. Under this law your creditors have a responsibility to act in a fair and reasonable manner when dealing with your personal circumstances.

Creditor Behaviour
Specifically, "Bullying" tactics by creditors are prohibited. Your creditors are also not allowed to from visit or telephone you at your place of work without your strict consent. Creditors are also not allowed to telephone you between the hours of 9.00 p.m. at night and 9.00 a.m. in the morning or on Sundays or public holidays without your consent. Their are also strict limits imposed on creditors for the sending of written communications to the your place of work.

Enforcement
A creditor may not enforce an agreement by demanding early repayment or seeking repossession without first serving a notice to you at least 10 days before they propose to take any action. This notice must state the action the creditor proposes to take to enforce the term of the agreement together with details of the date of the proposed action.

In addition, where a person has broken the terms of the credit agreement, the creditor or owner cannot demand early repayment or recover possession unless they have served a notice not less than 10 days before they intend to take action specifying the action needed to remedy the breach or if it cannot be remedied, the compensation sum payable, in either event not less than 21 days after service of the notice.

Consumer Protection Act 2007
On May 1st, 2007 the new Consumer Protection Act came into effect in Ireland. The Act provides a range of measures aimed at making business comply with consumer legislation and enabling people to take legal action against businesses that have acted unlawfully against them. Here the Act provides that for a consumer "redress" right under Section 74 that paves the way for a person to apply to the District, Circuit or High Court to claim for compensation in respect of any loss or damage suffered by the person as a result of a trader acting unlawfully against them.