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Friday 12 March 2010

Plagued by silent calls from Debt Collectors?

November 2009

Companies who make silent calls face up to 2 million in fines

Ofcom, the tele-communications regulator, has announced that companies that frustrate and harass consumers with silent and abandoned calls could now face fines of up to £2 million. A "Silent Call" is generated when automated calling systems used by call centres, including debt collectors and lenders, dial more numbers than can be answered by staff. Previous rules were in place to protect consumers from these calls, but firms who break those rules currently face a maximum fine of £50,000.

A new government consultation paper launched on 23 October 2009 is looking at raising the maximum penalty to either £250,000, £500,000, £1million or £2million. Ofcom Chairman Colette Bowe asked Government in January 2009 for stronger powers to tackle consumer harm caused by silent and abandoned calls.

Welcoming the consultation Colette said: "Silent and abandoned calls can cause untold concern for consumers, and particularly those that are old or vulnerable."

In the past Ofcom have taken action against well known companies like Abbey National (now Santander) and last October fined Barclaycard the current maximum penalty of £50,000.

EuroDebt director Kevin Still added: "People in financial difficulty and struggling with their debts are sometimes subject to this type of problems, where they have lenders, credit card companies and debt collection agencies chasing them for payment - often many times a day. We would agree with Colette Bowe of Ofcom that they can cause serious concern for consumers, especially those that are vulnerable. Recent reports on the number of people with financial problems and with mental health problems is a particular cause for concern."

For the full story go to Offcom: Silent calls clampdown.

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