OFT confirms DCA rules review - 13/05/2009

[PGH7447]

Credit Today online

 

The Office of Fair Trading (OFT) has confirmed it will be updating its guidance for the debt collection sector towards the end of the year.

 

David Philpott, deputy director credit group for corporate services at the OFT, told delegates at a conference today in London that its rules will be updated to take account of debt purchase guidelines.

 

Philpott was speaking at the Managing Consumer Debt conference, set up by Marketforce and the Institute for Economic Affairs, where lenders, debt collection agencies (DCAs) and MPs debated best practice over collections and pre-delinquency management. It comes after Credit Today revealed the OFT’s plans to review its guidance in February this year.

 

Philpott said: "Our aim is not to introduce unnecessary burdens on debt collection agencies. 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."

 

He added that one of the most common complaints the OFT receives about DCAs is the mistracing of individuals, which he attributed largely to some debt collectors’ inappropriate tracing activities and over reliance on poor quality source data provided by the original creditor.

Philpott added that a common theme was insufficient accuracy of checks of data received from creditors and credit reference agencies, although the OFT will be writing to creditor trade associations to urge them to ensure their databases of source data are accurate and that up-to-date information is provided to debt recovery agencies.

 

He said other common complaint themes included failure to investigate disputed debts properly and refusals to deal with, or bypassing, third party representatives.

 

Philpott added that the OFT is continuing with its irresponsible lending guidance and that final guidance is on track to be delivered around December 2009 and January 2010.

 

He added: "We don’t think compliance with irresponsible lending guidance should be about raising the bar, we would expect any responsible lender to be compliant already." He said much has been made so far during consultation of irresponsible borrowing, but he added that risk assessment should factor this in when working out a borrower’s ability to repay.

[42man]

Let's hope they have been looking at these forums for further inspiration !!!

[Blondmusic]

And about time too. The DCA's have had the ball in their court for far too long. They need putting on a lead and reining in. The behavior of some of these 'companies' nothing short of disgraceful.

[version302003]

I also read that a report is due to be published about the peers who were paid to change laws ( lord taylor for experian)

 

BBC NEWS | Politics | Peers await report into conduct

[42man]

This should be a criminal investigation....

[cerberusalert]

The 'Old Boy Network' closing ranks. No doubt the report will be a whitewash too.

[version302003]

UPDATE:

 

Two Labour peers face suspension from Parliament for six months after being found guilty of misconduct.

 

Ex-trade minister Lord Truscott and Lord Taylor of Blackburn were accused by the Sunday Times of being willing to change laws in exchange for cash.

BBC NEWS | Politics | Two Labour peers face suspension