There is a god, 1st Credit gets a SERIOUS slap from OFT - Re Stat Demands etc

[Curlyben]

At long last the OFT has taken action against unfair issuance of SD's and other misleading activities from our favourite DCA, First Credit Ltd

 

OFT imposes requirements on 1st Credit over debt collection practices

 

20/09 25 February 2009

 

The OFT has taken action against 1st Credit Ltd requiring the company to improve its debt collection practices.

 

The OFT has imposed 'requirements' on 1st Credit using consumer credit powers, after an investigation found that some of its business processes and procedures failed to meet satisfactory standards. As a result, 1st Credit Ltd and its associated companies must:

 

* refrain from issuing statutory demands warning of bankruptcy where it is unlikely that proceedings will be initiated

* not discuss legal action with consumers unless it is likely that such action will be taken

* ensure that sensitive cases involving vulnerable individuals, for example those with mental health or medical problems, are dealt with appropriately, and

* ensure that all matters of concern raised with them by the free advice sector and other third parties are dealt with appropriately.

 

1st Credit must also report back to the OFT every six months providing statistics regarding the number of enforcement actions it has taken against debtors.

 

Failure to comply with the requirements could lead to a fine of up to £50,000 for occurance and/or possible revocation of 1st Credit's consumer credit licence.

 

http://www.oft.gov.uk/news/press/2009/20-09 - PRESS RELEASE

 

http://www.oft.gov.uk/shared_oft/press_release_attachments/1stcreditrequirements.pdf - 1ST CREDITS / CONNAUGHTS / LCS DIRECTIVES

[SHELBELLE]

That's great news...perhaps we should all start complaining to OFT from now on then!!!!

[cerberusalert]

Any complaints about non-compliance should be sent to:

 

Enquiries

Office of Fair Trading

Fleetbank House

2-6 Salisbury Square

London

EC4Y 8JX

 

[email protected]

 

Duly bookmarked:D

[42man]

About time, this is good news and I urge all those who are fighting 1st Credit / Connaught to report them to the OFT !!! Next on the list is Capquest.....

[Tigstheterror]

About time, i have an account with these with regards a Lloyds TSB credit card, i have CCA'd them and so far they are 1 day off the 12 + 2 deadline!!! There is a ray of light in the thunder clouds after all yeyyy!!!

Tigs x

[42man]

And a huge well done to those who have complained to the OFT and Gareth Thomas !!

[angel_1]

FANTASTIC NEWS oh i like that bit about vulnerable people,

 

well oft i applaud you finally got the gears from stalling at the first post

 

im enjoying all this now,

 

laters angel x:D

[lickthewallfatboy]

nice to know my complaint actually helped going towards slapping these persons down....

 

CAG won't be on worst crudit's Christmas card list this year then..... :laugh:

[ScarletPimpernel]

I am currently dealing, as an authorised rep, with 1st Credit, who have continued to harass the client by phone whilst in default of a CCA. I've now made a formal complaint and rang them this morning to clarify a point (namely that they have continued to leave phone messages); they were very polite and at pains to assure me that the complaint would be properly dealt with and no further contact made with my client. Maybe the OFT has grown some at last!

[angry cat]

I cannot emphasise this stongly enough;

when a DCA uses Unfair Practices;

report the matter to Consumer Direct and to the OFT...

 

remember, the OFT's wheel's turn very slowly, but if consumers do not complain, then the OFT will never know what has and/is occurring!

 

COMPLAIN, COMPLAIN, COMPLAIN!!!

 

AC

[lickthewallfatboy]

it's been a few months since I complained,and it's taken some time for the complaints snowball to grow to critical mass at the top of the hill,but now it seems to have come crashing down on worst crudit at last

 

nothing like getting a bit of manners put in them

[ScarletPimpernel]

I note that the OFT's 'requirements' apply to any company under the banner or direction of 1st Credit - so that'll be Connaught for starters, then.

[nish40]

Hopefully some more DCAs will be investigated and acted upon now................weeeeeeeeeeeeeeeeeeeeeeeeee

[cadencealex]

The OFT told me to contact the Information Commissioner about Next and their lack of CCA.

 

The Information Commissioner told me that Next don't need to have a signed CCA because the Data Protection Act doesn't state they need a signed contract.

 

Totally confused with that lot.

 

The ICO told me to email all my documents and they will look into it.. but doesn't that interfere if I start court proceedings?

[RedVixen]

When I tried to complain via consumer direct about Lloyds and their 'representatives' I was told they didn't do this and I would have to go to the FOS after going through Lloyds formal complaints procedure so I will be emailing OFT using the address above

[ODC]

What excellent news. I bet *** ******* is not a happy chappy.

 

Still I suppose all those SDs were sent out by a 'system error'

 

Time to sort out CRAPQUEST for sending an SD on a Statute Barred Account.

[JonCris]

Great.............sorry to be a wet blanket. My only concern is who decides whats 'valid' or not the debtor or 1st Credit or even the OFT who have proven previously that they think we shouldn't use a 'technicality' to avoid paying a debt, even though that 'technicality' is based in law:mad:

[angry cat]

I note that the OFT's 'requirements' apply to any company under the banner or direction of 1st Credit - so that'll be Connaught for starters, then.

 

Connaught Collections;

LCS Solicitors;

Debt Help Services

 

AC

[zazen.warrior]

I wonder if all those threats of stat demands will stop now - it was one of those which brought me here in the first place...

[foolishgirl]

It's great news that the OFT have been finally prodded into action but being the cynical gal I am, suspect it had more to do with the expose of First Credit on Panorama some months ago than it did the mountainous piles of complaints from CAgers & others.

 

Still a long way to go in the battle I fear...

[noomill060]

Step in the right direction.

[pebsham]

As I stated on the Lowell's UK26 thread this still seems very weak as in all things OFT.

 

It appears to allow 1st credit to "interpret" the guidelines ie

 

"It is commercislly viable" (In whose opinion?)

 

"The case has been fully reviewed" (by whom?) "& is considered reasonable" (Reasonable by 1st credit standars?)

 

All I can see is a load of "we thought we were doing as we were told" Another load of complaints to the OFT that'll take 9 months to address, meanwhile Farce Crudite will be bullying and intimidating as per usual.

 

The only positive thing it does is highlight how seriously these low life bottom feeders are prepared to flout Laws and government guidelines

[fuzzybobble]

I don't think it matters about if it was the bad press on tv or mass complaints from people taking advice from consumer forums.

 

What matters is in the current climate the media are now taking notice of our DCA horror stories, and action is being taken against them. If we're to take a few DCA's down. Now is the best chance we will ever get to hit them where it hurts most.

 

The more bad press they get and the more complaints we make, the stronger we'll become. But we are winning. Look at how many cases CAG members have won recently. UK26 has Experien and Lowells looking like frightened rabbits in car headlights. In what should be golden times for DCA's, some of them are struggling.

 

We have nothing to lose apart from a little bit of time/stamps/and paper.

[MrMT]

It's good to see something is being done and handy to know the circumstances which the OFT takes a dim view of; I'm of poor health, low income, no job and have no assets, for instance.

 

However, I think it's wholly inadequate that they rely on complaints - how can the mentally ill complain for instance?

[westendwendy]

What a heartwarming announcement,it was a long time coming but have the OFT finally developed some teeth.

 

It was an SD from Connaught(on behalf of 1st Credit) that bought me to this site so I am delighted to say that I've become a statistic in what could become 1st Credit's downfall.

 

It may take a while longer to bring them down but the tide does seem to be turning at last.