Statutory Demands FCA Rules and Guidance from April 1st

[Amethyst]

Detailed rules for the FCA
regime for consumer credit

This instrument comes into force on 1 April 2014.

Proportionality

7.3.14 R (1) A firm must not take disproportionate action against a customer in
arrears or default.
[Note: paragraphs 7.14 (box) of ILG and 3.7t of DCG]


(2) In accordance with (1) a firm must not, in particular, apply to court for
an order for sale or submit a bankruptcy petition, without first having
fully explored any more proportionate options.
[Note: paragraph 7.14 (box) of ILG]


7.3.15 G A firm should not make undue, excessive or otherwise unfair use of statutory
demands (within the meaning of section 268 of the Insolvency Act 1986)
when seeking to recover a debt from a customer.
[Note: paragraphs 7.10 of ILG and 3.7n of DCG]

[ncf355]

Re: Statutory Demands FCA Rules and Guidance from April 1st

Oh dear

Guessing this will make for VERY unpleasant reading for someone beginning with 'L'

[Amethyst]

Re: Statutory Demands FCA Rules and Guidance from April 1st

2009 - OFT requirements http://oft.gov.uk/shared_oft/press_r...quirements.pdf

As a result, 1st Credit Ltd and its associated companies must:

refrain from issuing statutory demands warning of bankruptcy where it is unlikely that proceedings will be initiated

not discuss legal action with consumers unless it is likely that such action will be taken

ensure that sensitive cases involving vulnerable individuals, for example those with mental health or medical problems, are dealt with appropriately, and
ensure that all matters of concern raised with them by the free advice sector and other third parties are dealt with appropriately.

1st Credit must also report back to the OFT every six months providing statistics regarding the number of enforcement actions it has taken against debtors.

Figures 1st March to 1st March.

LOWELL
718 gazette documents, from 01/03/2011 to 01/03/2012 and containing the word(s) 'Petitioner: Lowell'
509 gazette documents, from 01/03/2012 to 01/03/2013 and containing the word(s) 'Petitioner: Lowell'
306 gazette documents, from 01/03/2013 to 01/03/2014 and containing the word(s) 'Petitioner: Lowell'

1st CREDIT
201 gazette documents, from 01/03/2012 to 01/03/2013 and containing the word(s) 'Petitioner: 1st Credit'
83 gazette documents, from 01/03/2013 to 01/03/2014 and containing the word(s) 'Petitioner: 1st Credit'

[ncf355]

Re: Statutory Demands FCA Rules and Guidance from April 1st

Good grief, those are some shocking results

[Amethyst]

Re: Statutory Demands FCA Rules and Guidance from April 1st

Indeed. Reducing though


7.14 of ILG box is

Proportionality
7.14 Taking steps to repossess the borrower's home, other than as a
last resort.
The OFT would not expect a creditor to take disproportionate action against
borrowers in respect of arrears or default. This would include such matters as
applying to the court for an order for sale or for the borrower to be made
bankrupt, without having explored other alternative, more proportionate options
for recouping arrears.
39 Lasting Powers of Attorney do not exist in Northern Ireland. An enduring power of attorney
can be granted and must be lodged in the High Court through the Office of Care and Protection.
OFT1107 | 71
In the OFT's view, it would not be disproportionate for creditors to apply for
charging orders (or inhibitions in Scotland) against a borrower's home as a
means of securing arrears owed to them. However, we would consider it to be
an unfair and irresponsible lending practice for creditors to use the threat of
court action followed by a charging order (or inhibition) to intimidate borrowers
in financial difficulties to pay more than they could reasonably afford.
We consider that other possible options for dealing with the problem should be
explored prior to resorting to taking steps to repossess the borrower's property
and that proper consideration should be given to any reasonable offer by the
borrower to pay by instalments.
The OFT would further expect second charge lenders in England and Wales to
have regard to the requirements of the Pre-action Protocol for Possession Claims
Based on Mortgage or Home Purchase Plan Arrears in Respect of Residential
Property (PAP) as set out by the Civil Justice Council in October 200840. The
aims of the PAP are to ensure that a lender and a borrower act fairly and
reasonably with each other in resolving any matter concerning arrears, and to
encourage more pre-action contact in an effort to seek agreement between the
parties on alternatives to repossession.
The Pre-action Protocol on Possession Proceedings applies to all mortgage
repossession cases in Northern Ireland.41 The Home Owner and Debtor
Protection (Scotland) Act 2010 provides for pre-action requirements to be
placed on secured lenders in Scotland.
40

AND 3.7t of DCG is

3.7 Examples of unfair or improper practices are as follows:

t. taking steps to repossess the debtor's home, other than as a last resort.
42

[EXC]

Re: Statutory Demands FCA Rules and Guidance from April 1st

Oh dear

Guessing this will make for VERY unpleasant reading for someone beginning with 'L'

Especially if it appears in conjunction with a story on it by a certain national media organization.

[Amethyst]

Re: Statutory Demands FCA Rules and Guidance from April 1st

:wub: subtle EXC, subtle

[ncf355]

Re: Statutory Demands FCA Rules and Guidance from April 1st

Oh yes, I'm liking...........

[Amethyst]

Re: Statutory Demands FCA Rules and Guidance from April 1st

With the new rules in mind I wonder whether it may be worth people who have got through the Stat Demand process to write to the FCA with something like this letter we prepared agesss ago to complain to the OFT. Changing references to the FCA rules and guidance but still quoting the 1st credit undertakings ?

YOUR NAME AND ADDRESS.

FAO Ray Watson

Dear Sir

I wish to make a formal complaint about a company called xxxxxxxxxxxx (Lowell etc) I have recently received a statutory demand which I intend to set aside due to a major dispute / which I have set aside in my local court, and despite (no response from xxxxxxx / them not appearing in court) / to which I have not responded, and it is clear to see that as the time has run out to present a bankruptcy petition / It should be mentioned that at no time have they attempted any kind of personal service which I believe is an integral part of the Insolvency procedures. I feel they have used the demand as a debt collection tool.

I understand that another debt collection agency were given 'requirements' by the Office Of Fair Trading back in 2009. In your requirements imposition you clearly stated to 1st Credit that.

refrain from issuing statutory demands warning of bankruptcy where it is unlikely that proceedings will be initiated

Can you please clarify to me if I am correct in stating that all debt collection agencies compliance departments should comply with this ?

I realise that you will not be able to get involved in individual cases, but I would like to bring this to your attention.

Yours sincerely

[EXC]

Re: Statutory Demands FCA Rules and Guidance from April 1st

Changing references to the FCA rules and guidance but still quoting the 1st credit undertakings ?

And the Gazette petition data?

[ODC]

Re: Statutory Demands FCA Rules and Guidance from April 1st

Especially if it appears in conjunction with a story on it by a certain national media organization.

:wub: subtle EXC, subtle

Too subtle for me

[Walker]

Re: Statutory Demands FCA Rules and Guidance from April 1st

Detailed rules for the FCA
regime for consumer credit

This instrument comes into force on 1 April 2014.

Amethyst, can you kindly provide a link to the FCA document. Do these rules apply to a Statutory Demand issued against an individual for collection of Council Tax arrears?

Thanks in advance.

[Amethyst]

Re: Statutory Demands FCA Rules and Guidance from April 1st

Unfortunately not, the rules are from CONC ( Consumer Credit sourcebook ) and deal only with Consumer Credit regulated lending.

You should start a new thread regarding the statutory demand you have received for the council tax as you will need to deal with it quite quickly.

[Walker]

Re: Statutory Demands FCA Rules and Guidance from April 1st

Unfortunately not, the rules are from CONC ( Consumer Credit sourcebook ) and deal only with Consumer Credit regulated lending.

You should start a new thread regarding the statutory demand you have received for the council tax as you will need to deal with it quite quickly.

Done. Thanks for your advice.

[Mani1111]

Re: Statutory Demands FCA Rules and Guidance from April 1st

Hi
got any recent figures from the gazzette to how they have complied with the rulings since 2014