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Debt Collection Practices
October 2011
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.
OFT updates debt collection guidance
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.
The debt collection guidance
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workshop was hosted by the OFT and a range of other events and meetings were attended to receive feedback on the draft guidance. 65 written consultation responses were received.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.
Source: oft.gov.uk