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Written question asked by Barry Gardiner (Labour) on Thursday, 30 October 2003, in the House of Commons. It was due for an answer on Wednesday, 5 November 2003. It was answered by Gerry Sutcliffe (Labour) on Wednesday, 5 November 2003 on behalf of the Department of Trade and Industry.

Dept of Trade and Industry

Question
To ask the Secretary of State for Trade and Industry, if she will take steps to make loan companies publish statements on their efforts to reduce harassment of clients whom they are pursuing for overdue loans; if she will take steps to restrict the (a) days and (b) times of day that debt collectors can contact people they are pursuing for overdue debts; if she will take steps to restrict the number of (a) letters, (b) phone calls and (c) face to face visits debt collectors can make to people they are pursuing for overdue debts; what recent discussions her Department has had with consumer groups about harassment of borrowers by debt collection companies.
Answer

Mr. Gardiner: To ask the Secretary of State for Trade and Industry (1) if she will take steps to make loan companies publish statements on their efforts to reduce harassment of clients whom they are pursuing for overdue loans; [136175] (2) if she will take steps to restrict the (a) days and (b) times of day that debt collectors can contact people they are pursuing for overdue debts; [136176] (3) if she will take steps to restrict the number of (a) letters, (b) phone calls and (c) face to face visits debt collectors can make to people they are pursuing for overdue debts; [136177] (4) what recent discussions her Department has had with consumer groups about harassment of borrowers by debt collection companies. [136178] Mr. Sutcliffe: OFT issued guidance for debt collectors on 14 July 2003 which is aimed at all consumer credit licence holders and applicants and applies to the collection of debt once an account is in default. It sets out the type of behaviour, such as harassment of debtors, that the OFT, which administers the licensing system, considers to be unfair and which could call into question fitness to hold a licence. OFT guidance states it is an unfair business practice for a debt collector to be contacting debtors at unreasonable times and ignoring or disregarding debtors' legitimate wishes. Further to consultation on the guidance OFT decided not to prescribe specific times given debtors' differing circumstances. The practice of debt collectors when recovering overdue loans has been considered in the context of my Department's review of the Consumer Credit Act. The Consumer Credit White Paper that we will publish in December will outline our proposals to regulate the conduct of lenders and unfair credit agreements.

Secondary information

Type
Written question
Reference
412 c667-8W;412 c667W; 136175;136176;136177;136178
Session
2002-03
Subjects
Companies Debts Debt collection Harassment Loans Money lenders Repayments
Link
View this Written question on www.publications.parliament.uk