UK Govt Publishes Guidance on Unfair Debt Collection Practices

LONDON, England – Debt collectors are being told to deal fairly with debtors or face losing their consumer credit licence, with new guidance published by the OFT today.

The guidance is aimed at all consumer credit licence holders and applicants and applies to the collection of debt once an account is in default. It sets out the types of behaviour that the OFT considers to be unfair and which could call into question fitness to hold a licence. Examples of the types of behaviour covered include:

• failing to investigate or provide proper details/records when a debt is queried or disputed

• failing to deal with appointed third parties such as Citizen’s Advice Bureaux or independent advice centres

• pursuing third parties for payment when they are not liable

• falsely implying or claiming authority – such as claiming to be working on court authority

• contacting debtors at unreasonable times and/or intervals

• claiming a right of entry when no court order has been obtained

• misleading debtors by the use of official-looking documents such as letters made to resemble court claims

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