Debt collection body and government meet

09/02/2009

Debtors might be given 30 days' "breathing space" from collection agencies, following a government recommendation.

Ministers want the Credit Services Association (CSA) to introduce the period in order to give those in debt extra time to pay the money off.
The request came during a meeting last week between the Department for Business Enterprise and Regulatory Reform (BERR) and the industry body, Credit Today reports.

Creating a new central database of individuals that had been contacted by the firms in error in order to ensure that mistakes were not repeated was also under discussion.

The BERR told the CSA that allowing recovery firms to use the electoral roll to help their data collecting was a matter for the Ministry of Justice.

Commenting, EuroDebt director Kevin Still said: "One of the items raised by the Office of Fair Trading (OFT) recently with regard to complaints against debt collectors was the situation where the debtor appointed a licensed debt advisor like EuroDebt who is subsequently bypassed, which is in breach of the OFT Debt Collection Guidance.

"These discussions are welcomed, where there is an opportunity for the debtor and their advisor to properly present their statement-of-affairs in a consistent manner using realistic expenditure figures to present a sustainable repayment plan allowing a fair return to the creditors that the collectors represent."

Talking to the news source after the meeting, a spokesman for the CSA said: "This is the start of dialogue with the government and it is about sharing best practice."

Tags; Debt Management and Banking, Credit Card Lifestyle,

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