Debt collectors get OFT warning

A total of 13 debt collection companies have been warned about their conduct by the Office of Fair Trading (OFT), it has emerged.

The businesses cited have fallen foul of the OFT’s rules governing acceptable behaviour with regards debt collection and now has four weeks to explain their actions or face further action.

According to the OFT, the firms it has focussed on have been guilty of harassing people for money they did not owe and for failing to investigate disputed claims.

Furthermore, a number of the credit companies stand accused of adding to the debt management difficulties of a number of families by threatening to visit their homes without good reason.

“One of our main priorities is to protect consumers who may already be vulnerable as a consequence of serious debt problems,” said David Philpott, deputy director of consumer credit at the OFT.

Earlier this week, a new set of laws came into effect that is designed to deter money lenders that employ practices deemed to be unfair on their customers.