Written question asked by Danny Alexander (Liberal Democrat) on Monday, 1 February 2010, in the House of Commons. It was due for an answer on Wednesday, 3 February 2010. It was answered by Lord Brennan of Canton (Labour) on Thursday, 18 March 2010 on behalf of the Treasury.

Debt Collection

Question: To ask the Chancellor of the Exchequer (1) how many complaints have been made to the Financial Services Ombudsman by residents of (a) Inverness, Nairn, Badenoch and Strathspey constituency, (b) the Highlands, (c) Scotland and (d) England and Wales regarding debt recovery agencies in each of the last five years;

Answer: I have been asked to reply.Complaints made to the financial service ombudsman by residents regarding debt recovery agencies is a matter for the financial ombudsman service and they will write to the hon. Member directly with the details.The OFT has told us that since the introduction of its wider powers in April 2008, it has imposed requirements on six debt collection agencies whose conduct has caused it dissatisfaction. Requirements were imposed on one business in Scotland in April 2009. Four businesses based in England are subject to conduct requirements: these were imposed respectively in February 2009, May 2009 and, on two of the businesses, in June 2009. Requirements were imposed on the remaining business, which is based in the Philippines but collects debts from UK consumers, in November 2008.The OFT does not have the power to impose an immediate financial penalty on licensed businesses where it is dissatisfied with the conduct of the business. However, if a trader fails to comply with a requirement, it could be subject to a penalty of up to £50,000 and/or revocation of its licence. As yet no financial penalties have been imposed, but OFT is monitoring compliance with the requirements imposed.

Secondary information