Further consultation OFT Debt collection-**URGENT RESPONSES REQ ASAP**

[MARTIN3030]

Oft debt collection consultation suppliment

 

This is a consultation which aims to look at further issues concerning debt collection guidance/practice and focuses on payments/direct debits where an agreement has been set up.

 

This is of particular

interest

since we have seen many complaints on CAG

where lenders have emptied accounts and varied agreed repayment amounts against the wishes of the borrower/taken amounts that were not agreed/taken payments which has left the lender with no money for essential living including food and heating.

 

The CAG

will be submitting to this and welcome for inclusion our members comments/thoughts.

The deadline for submissions is not far away so please post your contributions ASAP.

 

Here is further reading;

 

Debt Collection - supplementary consultation

 

Start Date:

16 December 2011

End Date:

26 January 2012

Content on this page ...

 

 

 

 

 

Summary

 

Revised OFT guidance on debt collection

(OFT664Rev) was published in October 2011.

Following representations received, the OFT has decided to undertake a supplementary consultation on its position on use of 'continuous payment authority' as a means of recovering monies owed in respect of consumer credit related debts as set out in paragraph 3.9m of that document.

We are also taking this opportunity to consult on the specific practice of debiting monies from an account in the absence of having the express authority to do so (including under circumstances in which the lender may have the authority, under a continuous payment authority or otherwise, to recover monies from another account(s)). This practice is dealt with in what could, subject to consultation, become a new paragraph 3.9n of the Guidance. This would replace what is currently the third bullet point of paragraph 3.9m in the revised Debt Collection Guidance.

 

 

Related documents

 

 

• Download the supplementary consultation document
  Debt collection: OFT guidance for all businesses engaged in recovery of consumer credit debts
  (pdf 202kb)
  
  
• View previous consultation (closed June 2011):
  Debt collection: draft OFT guidance for creditors, debt collectors, law firms and other businesses engaged in the recovery of consumer credit debts