Harassment by Debt Collectors Over Mistaken Identity

For ten long years, a resident of Wolverhampton has endured persistent harassment from debt collectors who erroneously claim she owes money to various companies she has never interacted with. Recently, she discovered that a County Court Judgment (CCJ) was issued against her but was completely unaware of it. This unfortunate situation arises from sharing a maiden name with another individual who is indeed responsible for the debt, despite their different middle names and living in separate regions.

Despite her continuous efforts to have her name removed from the records of these debt collection agencies, her plight remains unresolved. She has sought legal advice and even brought her case to the police's attention, yet no solutions have emerged. The latest correspondence she has received demands payment of £146 to a telecom company with which she has never been associated, further complicating her situation. Her credit score has taken a hit as a result, leading to a mortgage rejection.

The psychological toll from receiving threatening letters demanding payment for a stranger’s debt is vast. Over the years, some letters have even threatened bailiff action and legal repercussions. Fortunately, she has managed to apply successfully to have the CCJ annulled, but the harassment continues. One of the collection agents, which previously acknowledged her removal from their records, shamefully misidentified her as an ex-partner of the debtor.

The complexities surrounding debt collection arise from a convoluted network of companies involved in managing delinquent accounts. Often, larger corporations that fail to collect debts sell them off to collection agencies, which may enlist debt tracing firms to track down the debtor. However, there is minimal oversight over these tracing firms, allowing anyone to operate as one without regulation.

According to the Information Commissioner’s Office (ICO), it is crucial for creditors to make reasonable efforts to verify the accuracy of the information used during the debt tracing process before contacting individuals. A mere name and birth date match does not justify linking someone to a debt. Individuals who find themselves pursued for unrecognized debts should communicate directly with the collection agency to request proof of the alleged owed amount and put the account on hold until verified.

If the agency fails to provide proof and continues to pursue the debt, the affected individual can escalate the matter to the ICO or, for financial institutions, the Financial Ombudsman Service. However, even if a complaint is upheld, other companies may still exploit the inaccurate link. The latest agency contacting her, CRS Recovery, which had previously promised to cease communication, resumed demanding payment for an unpaid phone bill just a month later. Attempts to inquire how they confirmed her information have gone unanswered.