OFT 664 Debt collection guidance review consultation

[Amethyst]

Debt collection: draft OFT guidance for creditors, debt collectors, law firms and other businesses engaged in the recovery of consumer credit debts

Start date: 10 March 2011
End date: 02 June 2011
Content on this page ...

• Consultation document
• How to respond
• Responses
• Contacts
• Media enquiries

[anchor Summary]
Summary

Specific OFT guidance on debt collection (OFT 664) was first published in 2003 and updated in December 2006.
This consultation concerns the OFT's proposal to publish a revised version of that guidance, updated to take account of market developments, regulatory changes and other recently issued OFT guidance and draft guidance currently out to consultation.
We would welcome your views and comments on the consultation document (contact details below). The document contains instructions on how to respond to the consultation and who to contact with any queries.
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Consultation document

Debt collection: draft OFT guidance for creditors, debt collectors, law firms and other businesses engaged in the recovery of consumer credit debts (OFT664con) (pdf 583kb)
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How to respond

Please send responses by post to:
Jane Shepherd
Office of Fair Trading,
Fleetbank House,
2-6 Salisbury Square,
London
EC4Y 8JX
or by email to dcguidance-review@oft.gsi.gov.uk
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Responses

After the consultation we will publish a short summary of the responses received.
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Contacts

Team Leader
Rita Hall Hughes (020 7211 8671, rita.hall-hughes@oft.gsi.gov.uk)
Project Director
Nigel Cates (020 7211 8114, nigel.cates@oft.gsi.gov.uk)
Senior Responsible Officer
Ray Watson (020 7211 8908, ray.watson@oft.gsi.gov.uk)
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Media enquiries

Any media enquiries should be directed to a member of our Press Office.



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[leclerc]

Re: OFT 664 Debt collection guidance review consultation

There might be a few people who might want to help ya on this one

[Nibbler]

Re: OFT 664 Debt collection guidance review consultation

A lot to take in in that!

A brief skim and I like this:

ignoring or disregarding debtors' legitimate wishes in respect of when, where and how to contact them, for example, shift workers who ask not to be telephoned during certain times of the day, or some debtors may request contact by letter rather than by telephone

Still reading..............

[Amethyst]

Re: OFT 664 Debt collection guidance review consultation

Current 664 doc - http://www.oft.gov.uk/shared_oft/bus...dit/oft664.pdf for comparison etc

[jebedee]

Re: OFT 664 Debt collection guidance review consultation

Page 49 is interesting, it gives what the OFT believes are valid grounds for disputing a debt, limited or sensible?

[Amethyst]

Re: OFT 664 Debt collection guidance review consultation

They do encompass of lots of disputes - Although I'm not sure whether misselling (eg PPI/packaged account fees etc) would come under 'the amount of the debt being pursued is incorrect' ?

Does that need strengthening ? - or possibly a clarification that if only part of a debt is being disputed they can chase for the rest ?

[Nibbler]

Re: OFT 664 Debt collection guidance review consultation

A few things that stand out for me. (there are loads more)

- "using the threat of enforcement action through the courts – including but
not limited to applications for charging orders (or inhibitions in Scotland)
and orders for sale – to intimidate debtors in financial difficulties to pay
more than they can afford"

- "taking steps to enforce a debt when the debtor is subject to a debt
relief order (DRO), or other statutory scheme, for example, an
Individual Voluntary Arrangement (IVA)"

- "falsely implying or stating that a particular course of action will take place
before it is possible to know whether such action would be permissible

For example, referring to enforcement proceedings, including

• warrant of execution
• charging order
• attachment of earnings,

before a court judgment has been obtained."

Not even got on to the CCA stuff yet.

[Amethyst]

Re: OFT 664 Debt collection guidance review consultation

It's much stronger and clearer isn't it.

This is a good addition

h. failing to confirm formally and unequivocally, whether or not a payment
has been accepted as full and final settlement of a debt

i. failing to properly advise the consequences for the debtor, under
circumstances in which he has offered a settlement payment lower than
the total amount owing

[Nibbler]

Re: OFT 664 Debt collection guidance review consultation

m. making undue, excessive or otherwise inappropriate use of statutory
demands when pursuing arrears or debts

That is perhaps a but soft?

EDIT: But I suppose it depends what you define as inappropriate. If it's construed as threatening court action they don't intend to take, then fine.

[jebedee]

Re: OFT 664 Debt collection guidance review consultation

i'll take more time to read this thouroughly.

[Nibbler]

Re: OFT 664 Debt collection guidance review consultation

Well, all in all, there are some good things in that. Mostly things that we know should have been there in the old version, but weren't.

Still falls woefully short in many regards though.

Too little too late comes to mind, as it usually does with the OFT.

Plus of course guidelines are fine, but their letter and spirit need to be enforced. The OFT failed on that score with the last set. I can't honestly see that improving from them or anyone that takes over their role.

[Crispybacon]

Re: OFT 664 Debt collection guidance review consultation

Wow well after a quick cursory read, as someone who uses the current OFT664 to put DCA's back in their place, I have to say that the proposed changes give a lot more clarification and 'protection' to consumers.

I am sure DCA's will still twist the words and the spirit to suit themselves (using the word 'may' rather than 'will' and argue this point) but these guidelines make it much more difficult.

Amethyst - Are you going to be responding to this in some official consultative capacity? Do you want feedback from forum members on this thread?

Crispy

[Amethyst]

Re: OFT 664 Debt collection guidance review consultation

Please Crispy, yes I would like to do a formal response so any thoughts very welcome. Will be fine toothcombing over the weekend to get a starting point to work from so will post once have done that xx

[EXC]

Re: OFT 664 Debt collection guidance review consultation

Can't you rope Amy in on the consultation?

[Amy]

Re: OFT 664 Debt collection guidance review consultation

You can go off people you know.