OFT warns debt collectors against using social media

24/10/2011

The OFT has launched its updated Debt Collection Guidance detailing the standard expected of all businesses who engage in the recovery of consumer credit debts, and warning against using social media sites to hassle debtors.

The guidelines are aimed at banks, law firms and tracing agents as well as traditional debt collectors.

The regulator clearly states the practices it considers to be unfair or improper, which includes using Facebook and Twitter to get in contact with debtors and getting in touch with debtors at unreasonable times or at inappropriate locations.

David Fisher, Director of Consumer Credit for the OFT said: “In the present economic climate, with many people, including those who may be particularly vulnerable, in financial difficulties, it is crucial they are treated fairly by companies recovering their debts.

“This updated guidance makes clear the standards the OFT expects of all businesses involved in debt recovery, including debt collectors, banks and law firms.”

Further guidance given by the regulator warns against misuse of continuous payment authority to recover debts, such as making recurring attempts to recover a single repayment and highlights responsibilities of all parties involved in the debt recovery process, including creditors, for the quality and level of information they maintain and exchange with others, in order to avoid the wrong person being pursued for a debt.

The standards also provide greater clarity on the OFT’s position on issues such as reasonably queried and disputed debt and statute barred debt and makes debt recovery businesses aware that they should adopt appropriate practices and procedures for dealing with particularly vulnerable debtors.

Tags; Income Worries and Debt, Debt Management and Banking,

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