OFT Warns Debt Sector About Tracing Tactics

May 2009

Office of Fair Trading Warning to Debt Collection and Tracing Sector

The Office of Fair Trading (OFT) is warning the debt collection and tracing sector that using neighbours to pass on messages to trace subjects is an unacceptable practice and should be ceased immediately. The OFT has imposed requirements on one 'trace and collect' company, Link Financial Limited, to confirm that it will no longer engage in this practice. Link are also a leading debt purchaser.

Nigel Cates, OFT Deputy Director for Consumer Credit, said:

"Using neighbours to pass on messages to trace subjects is an unacceptable practice that contravenes our Debt Collection Guidance. It has the potential, whether unintentional or not, to lead to the disclosure of private financial affairs and to cause distress and embarrassment, and we have made this clear in discussions with the Credit Services Association."

Kevin Still, EuroDebt Director, commented:

"We welcome some of the measures that the OFT have taken with regard to improving consumer protection in respect of debt recovery and tracing tactics used by some of the largest agencies and debt buyers. We have used consumer fact sheets provided by the Credit Services Association (CSA), the trade body for the majority of debt collectors and tracing agents, to improve consumer awareness of what are reasonable and fair practices for recovering money owed to creditors."

The full story can be read at the OFT website.

The Debt Collection Guidance and OFT complaint forms can also be found here on the OFT website

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