As part of its regulatory role the OFT issues guidance for all those seeking to recover debts arising from consumer credit or consumer hire agreements.
The OFT has updated its debt collection guidance. Although the guidance is entitled 'debt collection guidance', it sets out what the OFT expects of all those engaged in the pursuance of consumer credit related debts. This (October 2011) version of debt collection guidance replaced previous versions.
Download Debt collection guidance (pdf 697kb).
The Consumer Credit Act 1974 (the Act) requires most businesses that offer goods or services on credit or for hire, or that lend money to consumers, to be licensed by the Office of Fair Trading (OFT).
The OFT has a duty to protect the interests of consumers by ensuring the fitness of those holding or applying for consumer credit licences.
The OFT first issued specific guidance covering debt recovery activities in July 2003.
The OFT conducted formal consultation on proposed revisions to its Debt collection guidance between 10 March and 2 June 2011.
During this period, a stakeholder consultation workshop was hosted by the OFT and a range of other events and meetings were attended to receive feedback on the draft guidance. 65 written consultation responses were received. Consultees' views were considered, and, where appropriate, contributed to the final revised version of the guidance. A summary of responses to the consultation will be published by the end of 2011.
Guidance on the use, form and content of standard debt collection letters has been produced by the Credit Services Association/Debt Buyers and Sellers Group (CSA/DBSG) in association with the OFT.
Download Debt collection letters guidance (pdf 228kb)
This guidance is also available to CSA/DBSG members via the members section of the CSA website.
If you are an adviser or third party organisation and you would like to complain to the OFT about the debt collection practices of creditors and/or their debt collection units, as well as external debt collection agencies, please download and complete the complaint form (Word 123 kb) and return it to the OFT at the following address:
Enquiries Centre
Office of Fair Trading
FREEPOST
London
EC4B 4AH
Email: enquiries@oft.gsi.gov.uk
The OFT complaints evidence checklist (pdf 90 kb) may be helpful when dealing with complaints against traders collecting consumer credit debts. It can be used alongside the OFT's debt collection guidance and the complaint form.
If you are a consumer and would like more information, view OFT1299 - Been contacted by a debt collector? (pdf 82kb), an overview of some of the things you should be aware of when dealing with a debt collector.
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