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OFT sends warning shot to debt collectors
by Gill Montia
Story link: OFT sends warning shot to debt collectors
The Office of Fair Trading (OFT) has warned debt collectors and firms that trace debtors that they should immediately stop using neighbours to pass on messages to the people they are pursuing.
The watchdog describes the practice as a breach of the spirit of its debt collection guidance and says those who persist in the practice face “swift” enforcement action.
The OFT’s deputy director for consumer credit, Nigel Cates, says: “Using neighbours to pass on messages to trace subjects … has the potential, whether unintentional or not, to lead to the disclosure of private financial affairs and to cause distress and embarrassment, and we have made this clear in discussions with the Credit Services Association (CSA).”
For those troubled by debt collectors unlikely to fall under the regulation of the CSA, the Government has recently launched a national helpline and text messaging service aimed at stamping out the activities of loan sharks.
As the recession and credit crisis continue to bite, more people in desperate financial straits may be tempted to borrow at the exorbitant interest rates charged by unlicensed moneylenders.
At worst they can become the victims of violence or threats of violence, if they are unable to pay.
Consumers can now phone a national hotline on 0300 555 2222 to shop illegal operators.
and this one?
OFT to update debt collection guidance
Monday 18th May 2009
Speaking at the Managing Consumer Debt conference last week, David Philpott from the Office of Fair Trading (OFT) confirmed that it will update its guidance for the debt collection sector later this year.
The OFT rules are set to be revised to take account of debt purchase guidelines and best practice over collections and pre-delinquency management.
Some pressing issues face the debt collection industry at present, following consumer claims of companies chasing the wrong individuals, refusing to investigate disputed debts and bypassing third party representatives, such as debt management firms.
The OFT said that these problems would be tackled, and that it would contact creditor trade associations to ensure that updated information is provided to debt recovery agencies.
Mr Philpott denied that the new guidelines would create unnecessary burdens on the debt collection sector, adding: “We will take effective action against businesses that harm or may harm consumers but we also want to establish close links with businesses and consumer representatives to ensure constructive dialogue.”
OFT sends warning shot to debt collectors
by Gill Montia
Story link: OFT sends warning shot to debt collectors
The Office of Fair Trading (OFT) has warned debt collectors and firms that trace debtors that they should immediately stop using neighbours to pass on messages to the people they are pursuing.
The watchdog describes the practice as a breach of the spirit of its debt collection guidance and says those who persist in the practice face “swift” enforcement action.
The OFT’s deputy director for consumer credit, Nigel Cates, says: “Using neighbours to pass on messages to trace subjects … has the potential, whether unintentional or not, to lead to the disclosure of private financial affairs and to cause distress and embarrassment, and we have made this clear in discussions with the Credit Services Association (CSA).”
For those troubled by debt collectors unlikely to fall under the regulation of the CSA, the Government has recently launched a national helpline and text messaging service aimed at stamping out the activities of loan sharks.
As the recession and credit crisis continue to bite, more people in desperate financial straits may be tempted to borrow at the exorbitant interest rates charged by unlicensed moneylenders.
At worst they can become the victims of violence or threats of violence, if they are unable to pay.
Consumers can now phone a national hotline on 0300 555 2222 to shop illegal operators.
and this one?
OFT to update debt collection guidance
Monday 18th May 2009
Speaking at the Managing Consumer Debt conference last week, David Philpott from the Office of Fair Trading (OFT) confirmed that it will update its guidance for the debt collection sector later this year.
The OFT rules are set to be revised to take account of debt purchase guidelines and best practice over collections and pre-delinquency management.
Some pressing issues face the debt collection industry at present, following consumer claims of companies chasing the wrong individuals, refusing to investigate disputed debts and bypassing third party representatives, such as debt management firms.
The OFT said that these problems would be tackled, and that it would contact creditor trade associations to ensure that updated information is provided to debt recovery agencies.
Mr Philpott denied that the new guidelines would create unnecessary burdens on the debt collection sector, adding: “We will take effective action against businesses that harm or may harm consumers but we also want to establish close links with businesses and consumer representatives to ensure constructive dialogue.”
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