OFT ruling 'sends a message' to debt collectors - Loans - News - Moneyfacts

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OFT ruling 'sends a message' to debt collectors

OFT ruling 'sends a message' to debt collectors

Category: Loans

Updated: 26/02/2009
First Published: 26/02/2009

MONEYFACTS ARCHIVE
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The decision to require a debt collection agency to improve its practice has been welcomed by Citizens Advice.

An investigation into 1st Credit by the Office of Fair Trading (OFT) has resulted in a number of requirements being imposed, after it was found that the firm's procedures did not meet standards.

Responding to the move, creditor liaison policy officer at Citizens Advice Alex MacDermott suggested that other companies may take note, relieving some of the pressure on those with unsecured loans.

"Citizens Advice bureaux regularly report cases of aggressive debt collection practices which only compound existing debt problems," he said, adding that the OFT's decision "sends a clear message" that it is willing to use its new powers to protect consumers.

Earlier this month, Citizens Advice called on the government and businesses to provide a greater level of support for those who are facing secured loan arrears and other debt issues.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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