Unfair Debt Collection Practices

Under the Debt Collection Act 2018 (DCA), debt collection agencies in Bermuda must follow strict rules to ensure they treat consumers fairly. The law prohibits agencies from using unfair debt collection practices, which include:

• Harassing or oppressing a debtor (e.g., excessive calls, threats, intimidation).

• Using false, deceptive, or misleading statements to pressure payment.

• Engaging in unfair or unscrupulous behaviour, including unethical tactics.

• Charging fees or commission higher than what the law allows.

• Attempting to collect a debt that is not valid.

• Applying a payment meant for one specific debt to multiple debts without your consent.

• Obtaining or sharing your personal credit information without proper authorization.

It is important to understand that these rules apply specifically to licensed debt collection agencies.

Individual creditors, such as a store, landlord, or service provider who is collecting their own debt, are not bound by the DCA’s definition of unfair debt collection practices, though they must still act within the law and cannot harass, threaten, or defame you.