Why you MUST complain to FOS and OFT when DCAs misbehave

[smt37]

I wasn't going to complain to anyone about a DCA because it never seemed to do any good... until I read this:

about the Financial Ombudsman Service

The

Consumer Credit Act 2006 extended our remit and since 6 April 2007 we have also covered by law – for their consumer-credit activities – all businesses holding a standard consumer-credit licence issued by the Office of Fair Trading (OFT).
This includes:

■

businesses whose main activity is lending and hiring;

■

businesses licenced for ancillary activities, such as debt collecting...

From 1 October 2008 we will also cover OFT-licensed businesses for the new consumer-credit activities of debt administration and the provision of credit information services.

paying for the ombudsman service

We are funded by a levy on the businesses we cover and also by individual case fees. The OFT will calculate and collect the levy from individual businesses when they take out (or renew) their standard consumer-credit licence and after that, every five years. Currently, the amount each business pays is £150 for each five-year period.
When a complaint is referred to us, the business concerned has to pay an individual case fee. However, all businesses are entitled to a number of ‘free’ cases. In the 2008/09 financial year we will not charge a business for the fi rst three cases that we close that year. Further cases will be charged a case fee.

The case fee is currently £450 per case but is reviewed each year.

http://www.financial-ombudsman.org.uk/publications/introduction_consumercred it.pdf

OFT Licensing

Integrity issues

2.5 Concerns about integrity arise where there is clear adverse evidence of past misconduct, in relation to standards of business behaviour as well as non-compliance with the law. This evidence does not have to relate to a licensable activity and consumer credit does not have to be your primary business activity. The way you operate any aspect of a business may well be relevant to your fitness to hold a consumer credit licence. In some instances evidence that does not relate to a consumer credit activity may be relevant, for example a criminal conviction for fraud or violence. In other cases, concerns may arise where there is evidence that an existing licence holder has been engaged in an unfair business practice.

Examples of the kind of evidence that may involve integrity issues include the following:

•

criminal offences committed by you or your associates, particularly offences involving violence, fraud or dishonesty, whether or not they lead to prosecution or a conviction

•

any breach of the CCA, such as the rules relating to default and termination, or joint and several liability for the faults of suppliers under section 75 of the CCA

•

any breach of CCA Regulations, such as those relating to
advertising, agreements, pre- or post-contract information or early settlement

•

any breach of other consumer protection law, including that relating to misleading advertisements, price indications and product descriptions, harassment of debtors, unfair contract terms, and distance selling

•

any breach of the rules or principles of the Financial Services Authority (FSA)

•

insolvency, bankruptcy or disqualification as a director

•

discrimination including on grounds of sex, colour, race or ethnic or national origin, disability, sexual orientation or age in, or in connection with, the carrying on of any business (whether or not involving licensable activities)

•

providing false or misleading information to the OFT

•

any legitimate complaints about the business whether or not the activity in question is regulated under the CCA, including evidence of persistent breaches of contract with consumers

•

adverse information from other regulators, professional bodies, trade bodies, consumer organisations or other businesses, including the Financial Ombudsman Service and the Advertising Standards Authority, and any disciplinary action including by a trade association or the FSA

•

unauthorised use of the OFT name or logo, including the OFT Approved consumer code logo, or misrepresenting the business's status to suggest that the business is 'approved' by the OFT or in any other way

•

evidence of business practices that appear to the OFT to be deceitful or oppressive, or otherwise unfair or improper, whether unlawful or not and whether arising in relation to the licensed business or otherwise, and with particular regard to any breaches of OFT guidance.This could include evidence of irresponsible lending.

2.25 If the information you provide to us causes us to be in some way dissatisfied, the OFT response may not necessarily be to refuse or revoke your licence. It may be appropriate to address our concerns by imposing requirements on your business under section 33A of the CCA ('s33A requirements – see paragraphs 4.5 to 4.13).

4.13 We can charge you a financial penalty of up to £50,000 if you fail to comply with a s33A requirement. We will impose a penalty and calculate the level of penalty according to our

Statement of policy on civil penalties (OFT971).

http://www.oft.gov.uk/shared_oft/business_leaflets/credit_licences/oft969.pdf

Unfair relationships

Enforcement action under Part 8 of the Enterprise Act 2002

OFT guidance

1.1 The Consumer Credit Act 2006 (the 2006 Act) amended the Consumer
Credit Act 1974 (the 1974 Act). One of the principal changes was the
introduction of the concept of an unfair relationship.

1.2 This enables a borrower to challenge a credit agreement in court on the grounds that the relationship between the lender and the borrower in
connection with the agreement is unfair to the borrower. This provision
is in addition to an enhanced ability for consumers to take disputes to

the Financial Ombudsman Service (FOS)

Overlap with credit licensing

5.39 The acts or omissions giving rise to unfair relationships may also reflect on fitness to hold a consumer credit licence. In considering fitness, the OFT will have regard to any evidence of unfair relationships, for example arising from court judgments. The revised application form for consumer credit licences

includes a specific question regarding orders made under section 140A, and the relevant general noticerequires all licensees to notify such details to the OFT on an ongoing basis.

http://www.oft.gov.uk/shared_oft/business_leaflets/enterprise_act/oft854.pdf

£450 FOS investigation fee + £150 SD set-aside costs and OFT sanctions, including up to a £50,000 fine and/or possible revocation of licence. They are going to regret messing with me... I urge you to do the same.

Happy reading!

[angel_1]

thanks for such an important bit of info

im just finishing off the complaint info for my mortgage fiasco, then i will attack each creditor as they start on the harrassment trail

and also gives me great satisfaction they are being charged the 450 plus

they too will regret messing with me

have printed the info off and put up by my pc to act as my daily reminder

have a fun day ciao MAZ

[smt37]

It's going to be a fun day tomorrow. I have my day in court

[huggys boss]

subscribing, for future use

[citizenB]

Thanks for this, very useful information.

I wonder if it should be stikkied ?

[Multay]

I think so too....

[freakyleaky]

I have stickied this for now as it seems really useful information.

[citizenB]

Thanks freakyleaky

Anyone making a complaint to the FOS or OFT, might like to have a read of ReallyMadWoman's thread as well. She has put a lot of thought into her complaints and shares her experiences with the rest of us.

Complaining to the Financial Ombudsman Service

[Having_A_Knightmare]

I like the £450 levy.

Right Complaint going to FOS re CONaughts

[Having_A_Knightmare]

Basically COnaughts said they issued a SD in error.

What would the FOS do ?

Coudl they issue compo??

[Allwood]

I remember from somewhere that as of May 2008 DCA's were breaking the law if they sent out letters for a debt if they were in in receipt of the original agreement for the said debt.

Can anyone let me have the link to that piece of info.

Many thanks

[citizenB]

Originally Posted by Allwood

I remember from somewhere that as of May 2008 DCA's were breaking the law if they sent out letters for a debt if they were in in receipt of the original agreement for the said debt.

Can anyone let me have the link to that piece of info.

Many thanks

Allwood, check out babybear's thread, that might have the information you require.

CCA, DCAs and the Unfair Commercial Practices Directive

[Allwood]

Many thanks citizenB that is the one, I read that prior to the 26 May, DCA's would not be taken to task by the OFT or TS if they send out begging letter.

But after the 26 May DCA's would be in breach of the rules if they sent out begging letters and not in possession of a CCA. Is that correct??

[citizenB]

Originally Posted by Allwood

Many thanks citizenB that is the one, I read that prior to the 26 May, DCA's would not be taken to task by the OFT or TS if they send out begging letter.

But after the 26 May DCA's would be in breach of the rules if they sent out begging letters and not in possession of a CCA. Is that correct??

Ah, I misunderstood your first post. I am not absolutely sure if what you say is correct or not, I havent really read the new regulations properly.

If the DCA or /OC doesnt have a copy of the original agreement then as far as I am aware they are not allowed to enforce.