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_consumercredit.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 notice requires 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.

 

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/136654-complaining-financial-ombudsman-service.html

Edited October 4, 2008 by citizenB

[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:cool:

[citizenB]

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:cool:

 

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

 

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/147392-cca-dcas-unfair-commercial.html

[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]

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.

[antarctica]

I complained about Allied International Credit and this is what I got back. Didn'tseem to do anything. I was hoping they'd get fined!

 

 

"

 

Direct line

(0845) 722 4499

 

Our ref

Fax

(020) 7211 8877

 

Date

29 December 2008

Email

[email protected]

 

 

Dear

 

Consumer Credit Act 1974 (the Act)

 

Complaint Against: Allied International Credit (UK) Limited

 

Licence No: 200114

 

 

I acknowledge receipt of your complaint form and permission to disclose slip received on 23 December 2008.

 

 

 

I am very sorry to hear about the difficulties you have been experiencing however, the OFT has no authority to become involved in individual disputes between consumers and traders so we cannot advise you directly in this matter.

 

 

 

I enclose a list of organisations which can offer you help and advice. For specialist, face-to-face assistance, or intervention, you may wish to seek legal advice either through a local Citizens' Advice Bureau or directly from a legal adviser. The Financial Ombudsman Service can help with most complaints about consumer credit products and services if the consumer has failed to satisfactorily resolve the matter directly with the consumer credit licensee itself.

 

 

 

The OFT has issued guidance to consumer credit licence holders engaged in the debt collection industry. The guidance is intended to ensure that debt collectors treat individuals fairly. Non-compliance with this guidance will call into question the fitness of licence holders and applicants. You can view our guidance at: The Office of Fair Trading: Debt collection practices

 

 

 

We have therefore noted the details of your complaint, and we will consider this alongside any other complaints we have received with a view to any consumer credit licensing or other action we may decide to take.

 

 

 

Thank you once again for taking the time to write to us about this matter and giving us permission to disclose your complaint details.

 

 

 

 

 

Yours sincerely

 

 

 

 

 

 

 

Olushola Egbowon

 

Enquiries and Reporting Centre

 

Office of Fair Trading"

[reallymadwoman]

The OFT do allegedly keep a record of the number of complaints they get (including complaints notified by the FOS) but whether they ever do anything is anybody's guess. However I did read somewhere quite recently that the OFT is shortly going to investigate the activities of DCAs in general.

[antarctica]

Hi reallymadwoman!

 

I really hope they do get investigated, it's not fair that they go round terrorising people.

 

The email above just looks like a copy and paste to me, feels like it's worth nothing. However I shall still keep complaining, about everything!

[PhiltheBear]

The Financial Ombudsman Service can help with most complaints about consumer credit products and services if the consumer has failed to satisfactorily resolve the matter directly with the consumer credit licensee itself.

 

The OFT has issued guidance to consumer credit licence holders engaged in the debt collection industry. The guidance is intended to ensure that debt collectors treat individuals fairly. Non-compliance with this guidance will call into question the fitness of licence holders and applicants. You can view our guidance at: The Office of Fair Trading: Debt collection practices

 

That's not terribly useful, is it?

 

I currently have a problem that Barclays are (apparently) using 2 DCAs for the same debt. I know this is against the OFT guidelines. However, that doesn't help. If I am going to complain about all three parties - and I am - then where do I complain to? Should I go directly to the Ombudsman? Someone suggested Trading Standards was the right place to file a complaint. Is that true? If so, do I write to my local office or to the local offices of the appropriate DCAs?

[antarctica]

I'm sure that someone will be along with advice shortly!

 

Personally I'd complain to everyone

[reallymadwoman]

I'm sure that someone will be along with advice shortly!

 

Personally I'd complain to everyone

 

I would entirely agree with that but....

 

Trading Standards may or may not help, it seems to entirely depend on where you live. You have to make your complaint initially through Consumer Direct, and if you do it by email you'll just get a reply asking you to phone, so easiest to just phone in the first place.

 

To complain to the FOS you must have first complained to Barclays and either had their final response or had no response after 8 weeks. The FOS will take months to even get around to looking at your complaint, and in the meantime Barclays and their DCAs will continue doing exactly what they like.

[PhiltheBear]

To complain to the FOS you must have first complained to Barclays and either had their final response or had no response after 8 weeks. The FOS will take months to even get around to looking at your complaint, and in the meantime Barclays and their DCAs will continue doing exactly what they like.

 

I'm already going that route with Lloyds - in their case 2 DCAs plus their own solicitors (****). However, all of them went very quiet when I sent them each a letter pointing out that they were all breaching OFT guidelines and cited the complaint in progress with the Ombudsman offering to add their names to the complaint....

[reallymadwoman]

I usually send a 'standard' letter giving the FOS address and reference no, and inviting them to submit further correspondence direct. To my knowledge, none of them ever have, nor have they written to me again.

[craig.reading]

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_consumercredit.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 licencesincludes 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!

YouTube - Debt Companies Harassing Innocent people repeatedly

[craig.reading]

I'm already going that route with Lloyds - in their case 2 DCAs plus their own solicitors (****). However, all of them went very quiet when I sent them each a letter pointing out that they were all breaching OFT guidelines and cited the complaint in progress with the Ombudsman offering to add their names to the complaint....

YouTube - Debt Companies Harassing Innocent people repeatedly

[Toulose LeDebt]

When complaining to the OFT the following evidence is helpful and more likely to ensure that the matter can be dealt with.

 

(from oft website here)

 

DEBT COLLECTION CONSUMER COMPLAINTS

 

Details OFT would find helpful

1. Complaints generally

 

• Evidence tells chronological story

from start to finish (similar to

skeleton witness statement)

 

• Copies of all adviser/client

correspondence with debt collector

(including client's signed

authorisation for adviser to deal with

complaint on their behalf).

 

• Signed permission of client (not

adviser) - with complaint - for OFT to

disclose their details and complaint

to trader. (This would speed up our

investigations: avoid need to seek

such permission subsequently).

 

• Adviser summary (if possible) of

likely Debt Collection Guidance

(DCG) breaches, with evidence of

contended DCG breach.

 

• Any evidence of unfair business

practices generally, eg noncompliance

with other codes of

practice (eg NSEA re bailiffs, CSA)

as well as OFT’s DCG.

 

• Supply updates on complaints, (Issue

resolved? Debt written off? Situation

changed significantly?) particularly

where OFT has requested permission

to disclose.

 

• Adviser’s appreciation that OFT

cannot provide legal advice or help

individual complainants.

 

2. DEBT COLLECTION GUIDANCE (DCG)

 

Advisers' Complaints notified

to OFT- DCG breaches

 

Details OFT would find helpful

 

Frequent and/or threatening

phone calls – 2.6a/2.6g

• Dates and/or times of calls received.

• Name, if known, of debt collector

representative who made call.

• Details of debt collectors comments (not just

general contention of 'threatening and

abusive' etc)

 

Refusing to deal with

adviser/contacting debtors

directly and bypassing

adviser - 2.8c/2.8d

In what terms did adviser convey to debt

collector that they were now acting on client’s

behalf?

Adviser letter to debt collector - with signed

authorisation by client - would be conclusive,

especially if client authorisation worded to

confirm:

• Adviser is dealing with client’s complaint in

full, and

• all future debt collector correspondence

should be sent to adviser, and not the client.

 

Pressurising debtors to pay in

full, in unreasonably large

instalments, or to increase

payments when they are

unable to do so – 2.6f.

 

• What repayment offer was made?

• Pro rata offer, as per offers to other

creditors? And, if so, did other creditors

accept?

• Did client and/or adviser explain their

situation via completed financial means

statement? And, if so, what was debt

collector’s response?

 

Statute barred debt

complaints – 2.14

Evidence that:

• debt collector has:

o threatened legal action, or

o continued to press for payment after

debtor has stated they will not be

paying because debt is statute barred

• debt is fully statute barred, eg not subject to

any subsequent modifying agreement.

NB. It is not illegal to seek to collect statute

barred debts.