The government has today (23 December 2016) announced a crackdown on unresolved debts which can damage people’s credit ratings without them knowing. The action comes after concerns were raised that companies were issuing claims to consumers using incorrect addresses.
Ministers say that is unacceptable and will consult on ways to protect people from having their credit ratings affected despite being unaware of the claims made against them. They will also examine to what extent unscrupulous debt agencies have contributed to the problem.
The consultation will consider how the current system can be improved and reinforced to ensure that companies take all reasonable steps before they are able to apply to a court for a claim.
The consultation will look at ways to:
- better protect consumers who are sent mail to inaccurate addresses
- verify addresses again before a claim is sent
- protect people’s credit scores from being damaged if they resolve outstanding debts quickly
- consider how modern communication could notify people of outstanding debts
- assess the role of parking companies and examine how drivers are informed of fines