OFT final guidance on use of s77/78 due this week

[Nibbler]

Just noticed this on Crudit Today.

Credit Today online

The Office of Fair Trading is set to publish its final guidance on section 77 of the Consumer Credit Act by the end of this week....

[Amethyst]

Re: OFT final guidance on use of s77/78 due this week

Should be interesting

Cates said that the consumer watchdog had intervened in the High Court to argue that while fines should discourage bad practice from debt collection agencies it "was completely unacceptable that people were using the Act to escape paying."

[Amethyst]

Re: OFT final guidance on use of s77/78 due this week

end of week tmw ..... (blimey its a busy week this week isnt it!)

[Nibbler]

Re: OFT final guidance on use of s77/78 due this week

(blimey its a busy week this week isnt it!)

Certainly is.

Announcement after announcement it seems.

But not this one yet.

[Angry Cat]

Re: OFT final guidance on use of s77/78 due this week

Ah Ha, something that we have ALL been waiting for!

[The Debt Star]

Re: OFT final guidance on use of s77/78 due this week

don't hold your breath. it'll be the january 2010 guidelines which mean that DCAs are off the hook where CCAS requests are concerned

[Amethyst]

Re: OFT final guidance on use of s77/78 due this week

why Jan 2010 ? ccd ?

[Nibbler]

Re: OFT final guidance on use of s77/78 due this week

why Jan 2010 ? ccd ?

Presumably that is the draft guidelines/consultation the OFT issued in January 2010?

http://www.oft.gov.uk/shared_oft/con...OFT1175con.pdf

Personally, I would expect the final version to be much the same. Or perhaps even more friendly towards creditors/DCAs?

But we shall see...........

[Amethyst]

Re: OFT final guidance on use of s77/78 due this week

lol oh yes, I was thinking 2011 doh !

[The Debt Star]

Re: OFT final guidance on use of s77/78 due this week

Personally, I would expect the final version to be much the same. Or perhaps even more friendly towards creditors/DCAs?.

Thats what I'm saying, yes

[Angry Cat]

Re: OFT final guidance on use of s77/78 due this week

15/10/2010:
Just phoned the OFT and the result of the consultation has not yet been released!
No doubt they are looking at the CCD, prior to the press release.

"Relevant OFT guidance will be updated in due course in the light of the CCD changes:
http://www.berr.gov.uk/assets/biscor...e-guidance.pdf

[Nibbler]

Re: OFT final guidance on use of s77/78 due this week

Now published by the looks of it:

Docs dated October 2010.

Unenforceable credit agreements - The Office of Fair Trading

http://www.oft.gov.uk/shared_oft/bus...it/OFT1272.pdf

http://www.oft.gov.uk/shared_oft/bus...it/OFT1266.pdf

[Amethyst]

Re: OFT final guidance on use of s77/78 due this week

Ace, thanks Nibbler


Unenforceable credit agreements

Borrowers and hirers are able to ask creditors to send them information about their credit agreements. If information is not provided within 12 working days, the debt becomes unenforceable.
Sections 77, 78 and 79 of the Consumer Credit Act 1974 outline the information creditors must provide to debtors under fixed-term, running account and hire agreements.
Under these sections a debtor can pay £1 to get:

• a copy of their agreement
• copies of some of the other documents mentioned in their agreement
• a statement of account.

If this information is not provided within 12 working days the debt becomes unenforceable. This means a creditor:

• cannot:
  - make the debtor pay the debt before they're supposed to
  - get a court judgment against the debtor
  - take back anything hired or bought on credit, or take anything used as security in the agreement.
• can:
  - ask debtors to pay what they owe
  - send a default notice
  - pass information on to a credit reference agency
  - pass information on to a debt collector
  - sell the debt to someone else
  - take the case to court.

If you are a business and would like more detailed guidance, download OFT1272 - Guidance on section 77, 78 and 79 of the Consumer Credit Act 1974 - the duty to give information to debtors and the consequences of non-compliance on the enforceability of the agreement (pdf 330kb).
If you are a consumer and would like more information or you are a business that would like to send information to your customers view OFT1266 - Need information about your credit or hire agreement? (pdf 83kb)