A new survey conducted on behalf of debt advice and solutions provider Debt Advisory Centre has found that 27% of respondents have been contacted by a person or group claiming to be acting on behalf of a creditor. Those aged between 25 and 34 years old (39%) were the most likely to have received such contact.

Of the respondents who have been contacted by someone on behalf of a creditor, 27% did not fully understand who the people contacting them were. This figure rose to 38% among over-55 year olds.

39% of these respondents admitted that at the time of the communication, they did not recognise the differences between the powers of the organisations most likely to act on behalf of lenders: debt collectors, bailiffs and high court enforcement officers (HCEOs). This means that some of these respondents may not have known their rights at the time they were called or visited, the Debt Advisory Centre said.

The various debt collection agents able to act in the UK have different powers, and therefore the people they contact have different rights when dealing with them.

Debt collectors can be hired by lenders and do not act on behalf of the court. Bailiffs are appointed by the courts and so have greater legal powers – but they typically only collect certain debts, including County Court Judgements, unpaid court fees, income tax, council tax, VAT or national insurance. Finally, HCEOs, who were formerly known as sheriffs, work on behalf of the High Court and have the power to enforce court orders such as evictions.

The Debt Advisory Centre warned that not being fully aware of the powers of the different debt collection agents may mean people act in an uninformed way due to not correctly understanding their rights.

Ian Williams, spokesman for Debt Advisory Centre, said: “It’s worrying that of the more than one in four people in the UK who have been contacted by some form of debt collection agent, a quarter did not understand who that agent was and two-fifths did not understand the difference between the various debt collection authorities.

“Because debt collectors, bailiffs and HCEOs have very different powers, the recipient can choose to act in different ways when dealing with them. For instance, debt collectors do not have the authority to take and sell possessions, and bailiffs are not allowed to force entry to your home on their first visit.

“Being in debt can be a lonely and isolating experience, particularly once people acting on behalf of lenders start to get in touch chasing up late or missing payments. That’s why it’s important that anyone worried about their debts contacts an expert advisor when they first start to struggle with their debts, so they can find an appropriate solution before they get to this stage.”