Written question asked by Vincent Cable (Liberal Democrat) on Friday, 12 September 2003, in the House of Commons. It was due for an answer on Tuesday, 14 October 2003. It was answered by Gerry Sutcliffe (Labour) on Tuesday, 14 October 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, what assessment she has made of the Office of Fair Trading's compliance review of debt management companies; and what measures she plans to introduce to ensure good practice among debt management companies.

Answer: Dr. Cable: To ask the Secretary of State for Trade and Industry what assessment she has made of the Office of Fair Trading's compliance review of debt management companies; and what measures she plans to introduce to ensure good practice among debt management companies. [129936] Mr. Sutcliffe: The Office of Fair Trading has carried out a thorough compliance review to check on the industry's compliance with its debt management guidance. A report on the compliance review will be published shortly. The guidance sets out minimum standards which debt management companies should adhere to--failure to do so could result in action by the Office of Fair Trading to question their fitness to hold a consumer credit licence. The Office of Fair Trading continues to take up any issues of non-compliance with individual companies, such action can range from advisory/warning letters to formal action i.e. licence refusal/revocation. Due to the restrictions in the Consumer Credit Act relating to disclosure of information, the Office of Fair Trading cannot disclose details about action taken or planned against individual companies. Details of formal action taken are usually publicised and placed on the Office of Fair Trading public register. Since the guidance was issued there has been a considerable drop in complaints about Debt Management Companies to the Office of Fair Trading and to other consumer advice agencies.

Secondary information