OFT launches revised debt collection guidance
The OFT has recently published its updated debt collection
guidance, setting out the minimum standards expected of all
businesses engaging in the recovery of consumer credit debts,
including banks, law firms and debt collection agencies.
Interestingly, the guidance sets out specific practices which it
considers to be unfair, including:
- the use of Facebook, Twitter and other social networking sites
as a means of contacting debtors; and
- contacting debtors at unreasonable or unsociable times or
locations (for example, if a debtor is in hospital).
The misuse of continuous payment authority is now specifically
addressed in the guidance, which warns against creditors making
numerous attempts to recover a single payment.
The guidance also focuses on the importance of all parties
involved in the debt collection process maintaining and exchanging
data and information with each other, to ensure that debts are
properly pursued.
Finally, there is now a duty on firms to adopt appropriate
practices and procedures for dealing with vulnerable debtors.
View the updated
debt collection guidance.
