OFT warns 13 debt agencies
Friday, April 18th 2008
After receiving consumer complaints about a number of agencies the Office of Fair Trading has issued a warning to the 13 companies telling them that they have four weeks to improve the ways in which they collect their debts.
The complaints range from chasing consumers for payment of debts they did not owe to failing to carry out sufficient accuracy checks on data received from creditor clients and/or credit reference agencies.
After four weeks the OFT will consider whether any further action needs to be taken, their Deputy Director of Consumer Credit said:
'It is unacceptable for debt collection businesses to engage in unfair practices and we will continue to take action where we find evidence of this. One of our main priorities is to protect consumers who may already be vulnerable as a consequence of serious debt problems.'
Recently a law has been passed that allows the OFT to fine companies up to £50,000 if they do not meet regulations.
