Newsroom

OFT action on home collected credit super-complaint

14 June 2004

The home collected credit sector (otherwise known as 'doorstep credit' or 'weekly collected credit') is the subject of the latest super-complaint received by the OFT.

The National Consumer Council has asked the OFT to look at concerns in the sector which is worth around £2 billion a year in outstanding balances.

The OFT will now fast track this complaint and announce within 90 days (by 10 September) what action, if any, it proposes to take.

NOTES

1. The Enterprise Act 2002 allows designated consumer bodies to refer fast track complaints to the OFT. These complaints focus on areas where the complainant suspects there are market structures or practices that are working against the interests of consumers.

2. The National Consumer Council's application for designated status is currently being considered by the DTI. A decision is expected shortly. The OFT's view is that it is in the interests of consumers to treat the complaint as if it were a formal super-complaint.

3. Source for value of home collected credit market: Datamonitor UK non-standard and prime lending (2004).

4. Interested parties can send comments on the NCC report and the home collected credit sector to Sadrul Islam, Office of Fair Trading, Fleetbank House, 2-6 Salisbury Square, London EC4Y 8JX, or email him at sadrul.islam@oft.gsi.gov.uk

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