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Sub-prime credit brokerage and debt management - 3 March 2011

Name of complainant: Citizens Advice
Date of complaint: 3 March 2011

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Subject of complaint

The super-complaint raised a number of concerns but its core focus was the alleged consumer detriment caused by two practices in the credit brokerage and debt management sectors:

  • firms taking upfront fees for the services that they provide, andĀ 
  • firms 'cold calling' consumers by telephone and text to promote consumer credit products and ancillary credit services.

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OFT response: 1 June 2011

The OFT announced a series of measures in response to the concerns raised in the super-complaint.

In addition to the OFT's ongoing robust, targeted enforcement action, including the revocation of consumer credit licences where appropriate, the OFT is publishing two new pieces of guidance: on the standards the OFT expects of credit brokers, and on debt management.

The OFT is also asking the Government to consider whether new legislation is needed to address problems in the sub-prime unsecured credit brokerage market, including a possible ban on upfront fees.

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Key documentsĀ 

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Contact details

Senior Responsible Officer: Sonya Branch (020 7211 8707, sonya.branch@oft.gsi.gov.uk)

Project Director: Ray Watson (020 7211 8908, ray.watson@oft.gsi.gov.uk)

Team Leader: Jon Riley (020 7211 8143, jon.riley@oft.gsi.gov.uk)




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