§ Mr. Jim CunninghamTo ask the Secretary of State for Trade and Industry what regulations exist for debt collection agencies regarding the amount of evidence that must be represented to them before they take up a claim. [155662]
§ Mr. SutcliffeThe Office of Fair Trading (OFT) licence debt collection under the Consumer Credit Act 1974. The OFT publishes guidance which is intended to set out the type of behaviour that falls within the category of unfair business practices and which call into question fitness to retain or be given a licence. The most recent guidance on debt collection was published in July 2003.
The guidance does not specify what evidence must be provided to a debt collection agency before they take up a claim but it does state that "sending demands for payment to an individual when it is uncertain that they are the debtor in question" and "ignoring and/or disregarding claims that debts have been settled" are examples of unfair practices.
The guidance also makes it clear that the creditor remains responsible for third parties acting on their behalf and states that if they "choose to do business or continue to do business with third parties engaged in questionable fitness, then their own fitness will be called into question."
A copy of the guidance can be obtained from the Office of Fair Trading, Fleetbank House, 2–6 Salisbury Square, London EC4Y 8JX.