Bank's Conduct Amounted To Harassment

Key points

A bank's conduct, involving the making of hundreds of telephone calls to customers, could amount to harassment for which it would be liable in damages for injury to feelings. The conduct would have to be unacceptable and intimidatory and clearly amount to harassment contrary to the Protection from Harassment Act 1997. The existence of a debt did not give the Bank the right to make repeated telephone calls to the customer when she had made it clear that she did not wish to talk to them. The Bank should have pursued its legal remedies. The facts

The customer ("C") had a number of accounts with the Bank of Scotland (the "Bank"). There had been periods when C had exceeded her overdraft / credit card limit by a modest amount. The Bank thought it was necessary to contact C by telephone to discuss her accounts.

Original calls to defaulting customers were automated and when answered, would be transferred to an operative at a call centre. When the Bank made calls to C, she made it clear that the calls should stop. But in just over a year, the Bank made 547 calls to C. C commenced proceedings claiming damages from the Bank for harassment. The Bank claimed that the large number of calls was a reasonable attempt to contact C to discuss her accounts.

Decisions

C was in breach of her contract with the Bank as she had exceeded the permitted indebtedness on her accounts. The Bank could therefore sue and withdraw its services. However, a creditor is encouraged to first try and contact...