THE Office of Fair Trading has warned those involved in debt collection that failure to deal fairly and openly with consumers would jeopardise their consumer credit licence. The warning comes with the publication of draft revised guidance aimed at the sector.

The number or complaints received through their advice line regarding practices within the industry have concerned Highland Council, Trading Standards over the years. In addition the Council’s Money Advice Unit at Harbour Road, Inverness has also raised concerns about dubious practices of some of the firms who collect debts.

Money Advice Manager, Pat Sproul agrees that this is an area of concern and that money advice clients sometimes feel harassed and very depressed at the tactics of some debt collection businesses.
She adds, “A lot of clients who come to us for help are not aware that all debt collectors must have a credit licence to operate and that the Office of Fair Trading monitors the complaints they receive against licensed companies who use sharp practices. Some clients have come to us, in a very distressed state.
They may believe that debt collectors can just walk in and take furniture away or seize other goods, such as cars, televisions etc and that they have no rights under these circumstances.
Other debt clients may not agree with the debt they are being asked to pay, but unscrupulous debt collectors have ignored their claims. The new Guidance is welcomed as it clarifies the standards expected from this sector.”

The Guidance is aimed at helping debt collectors understand what type of behaviour is likely to lead to action being taken by the Office of Fair Trading to refuse or revoke a credit licence.
It will also cover those credit licence holders and applicants involved in debt collection activity either directly or indirectly including those who employ third party collectors. Unfair practices within this area include:

• Using official-looking documents intended to resemble court summons;
• Falsely claiming to be sheriff officers or messengers at arms;
• Misleading debtors over liability for collection charges; and
• Refusing to deal with appointed third parties such as Money Advice Officers with Trading Standards or Citizen Advice Bureaux.

The final draft of the Guidance was set to be published last month. The draft Guidance is available on web site www.oft.gov.uk
A final word from Pat Sproul, “If anyone feels that they have been unfairly treated by a debt collection agency or collector they should contact us immediately with their concerns. “We provide free and confidential money advice and consumer advice to Highland Residents.”

If you would like to speak to someone about consumer or money problems please telephone: 0845 600 4222
Alternatively you can reach Trading Standards by email on:
Consumer.advice@highland.gov.uk or money.advice@highland.gov.uk
Trading Standards is part of the Highland Council, Transport, Environmental and Community Services.