New Rules for Debt Collectors

The Office of Fair Trading (OFT) considered “unacceptable” the practice of leaving the messages from debt collectors with neighbors of people who are being traced. Such situation might disclose people’s debt problems and lead to embarrassment. One London-based company had already been told not to do this anymore and the OFT will be monitoring other companies as well. As they say in the OFT, private financial affairs shouldn’t be disclosed to anyone, and this practice in whole contradicted to the spirit of guidance issued by the company. In addition to this practice, debt collectors will be required to provide fair treatment to people with financial difficulties. For example, from the end of May the debtors will be given 30 days grace in case they have sought specialist debt advice. The Credit Service Association (CSA) will have this clause written into its’ code of practice which governs 300 members. According to the CSA estimation, an average debt may amount to 27,000 across up to 10 different accounts. Usually people don’t pay their utility bills, credit cards debts and also they miss repayments on bank loans.