can a OC ask me to pay debt using another cc

[peter1234]

I have a letter from my OC asking me to make a payment with another credit card is this against banking code or OFT guidance

[clemma]

There is a thread about this elsewhere. I contacted the OFT regarding this and as it is not construed as "further borrowing" then yes, they can ask you. In my eyes though, you should not be asked to do this as you are creating more debt, but hey-ho.....

[angry cat]

Paying one credit by using another is crazy and will undoubtedly lead to further borrowings...depending upon the debtors own situation.

[babybear39]

The OFT aren't following their own guidlines if they've stated that!

 

Physical/psychological harassment

2.5 Putting pressure on debtors or third parties is considered to be oppressive.

2.6 Examples of unfair practices are as follows:

a. contacting debtors at unreasonable times and at unreasonable intervals

b. pressurising debtors to sell property, to raise funds by further

borrowing or to extend their borrowing

c. using more than one debt collection business at the same time

resulting in repetitive and/or frequent contact by different parties

d. not ensuring that an adequate history of the debt is passed on as

appropriate resulting in repetitive and/or frequent contact by different

parties

e. not informing the debtor when their case has been passed on to a

different debt collector

f. pressurising debtors to pay in full, in unreasonably large instalments,

or to increase payments when they are unable to do so

g. making threatening statements or gestures or taking actions which

suggest harm to debtors

h. ignoring and/or disregarding claims that debts have been settled or are

disputed and continuing to make unjustified demands for payment

i. disclosing or threatening to disclose debt details to third parties unless

legally entitled to do so

j. acting in a way likely to be publicly embarrassing to the debtor either

deliberately or through lack of care, for example, by not putting

correspondence in a sealed envelope and putting it through a letterbox,

thereby running the risk that it could be read by third parties.

[clemma]

Yep, which is why I asked the OFT for clarification. This is the email they sent me back:

 

Thank you for your email of 29 June 2009.

 

The use of a previously agreed credit limit or facility would not appear to be further borrowing or an extension of existing borrowing. Taken in isolation, accepting a debit or credit card payment would not be considered to be an unfair business practice. That said, each case must be considered on its own merits and the Office of Fair Trading (OFT) would consider other factors such as whether consumers were being asked to exceed a previously agreed credit limit or facility or where the debt collector was applying unreasonable pressure on debtors (see paragraphs 2.5-2.6 of the OFT's Debt Collection Guidance). You can view our guidance at: The Office of Fair Trading: Debt collection practices

 

The OFT would not normally consider that contacting or writing to a debtor to request payment would amount to undue pressure, although as noted above, each case must be considered on its own merits.

 

The OFT is not aware that an offer of receiving payment by credit card breaches any regulations.

 

I hope the above is helpful.

 

Yours sincerely

 

 

 

Nilufar Miah

Enquiries and Reporting Centre

Office of Fair Trading

[babybear39]

The only way that it would be fair is if the interest rate was more favourable

[clemma]

I sure don't agree with what the OFT say - they just do not like to follow their own guidelines. I will have a search for the thread that went into all of this.

[clemma]

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/205825-dca-letter-pay-debit.html

[Bazooka Boo]

IMHO, as the OFT don't follow their own guidelines then I would let them know!

Complain about the OFT to the OFT:D

Use their own complaints procedure, wring it dry.

 

 

Boo;)

[angry cat]

There acully was a thread running about this issue, which became quite heated!

 

IMHO, the letter that Nilufor Mior, OFT, sent out was a general view.

Please note the wording "taken in isolation...".

 

My view on this, is that it depends on each individual case and the financial position of the debtor in question.

 

t would be impossible to send out a general, one size fits all letter, thus the vague reply.

 

A definitive answer in relation to an individual who is suffering great hardship would be more enlightening.

 

AC

[Bazooka Boo]

No can't find it neither:(

[babybear39]

Unfortunately the OFT does not deal with individual cases of us meer mortals

[angry cat]

Unfortunately the OFT does not deal with individual cases of us meer mortals

 

Trading Standards do!

 

AC

[babybear39]

Trading Standards do!

 

AC

 

No they don't! We've been waiting for TS to act on the CPUTR and the UCPD. Not heard of a single case thus far

[peter1234]

hi

My other card is at a higher rate and if i paid all the debt by this method it would take me way over my limit

 

Anyone got any ideas

the account is well in dispute they just wont admit it

[angry cat]

No they don't! We've been waiting for TS to act on the CPUTR and the UCPD. Not heard of a single case thus far

 

Okay BB, correction;

Trading Standards are supposed to, therefore the rules/legislation are not being enforced...

 

The OFT;

Trading Standards and;

The FSA are a shambles and puppets of the GOV.

[angry cat]

Time for complaints to all your MP's, MEP's and;

 

John McFall:

[email protected]

 

AC

[babybear39]

hi

My other card is at a higher rate and if i paid all the debt by this method it would take me way over my limit

 

Anyone got any ideas

the account is well in dispute they just wont admit it

 

In that case they are breaching OFT guidlines and the CPUTR (which is law). Report them to TS via consumer direct and the OFT.

[angry cat]

No they don't! We've been waiting for TS to act on the CPUTR and the UCPD. Not heard of a single case thus far

 

BB,

 

Yes, they do but none it would appear against Banks or DCA's;

Now isn't that surprise...NOT!

 

ADMAR - News - Consumer Protection from Unfair Trading Regulations 2008 - OFT Update Home maintenance tops list of Consumer Protection cases one year on.

 

AC

[babybear39]

BB,

 

Yes, they do but none it would appear against Banks or DCA's;

Now isn't that surprise...NOT!

 

ADMAR - News - Consumer Protection from Unfair Trading Regulations 2008 - OFT Update Home maintenance tops list of Consumer Protection cases one year on.

 

AC

 

Thanks for that AC but my comments were limited to banks and DCAs. Not once have the CPUTRs been used against agressive banks and DCAs.

[angry cat]

Thanks for that AC but my comments were limited to banks and DCAs. Not once have the CPUTRs been used against agressive banks and DCAs.

 

I know BB,

 

Shocking!

But of course, we know that TS are biased.

How long can they remain so?

 

After all the UCPD & CPUTRs are legislation that came from the EEU Parliament.

 

As I said, we must get the MEP's on to this.

 

AC