Debt Collectors Warned to Uphold Privacy

Wed, 20 May 2009

The Office of Fair Trading (OFT) has warned debt collectors to ensure they maintain privacy standards when chasing unpaid debts . The OFT has advised collectors not to leave messages with the neighbours of those in debt, claiming such a practice is ‘unacceptable’ and leads to ‘distress’ and ‘embarrassment’ for those in financial trouble.

Nigel Cates of the OFT revealed that their concerns had been expressed to the Credit Services Association (CSA), as they seek to prevent the disclosure of private financial details in addition to any unnecessary emotional embarrassment.

The warning is part of the OFT’s attempts to ensure debtors are treated fairly, with a new clause to set to be introduced at the end of the month to give debtors a 30 day breathing space, as long as they have sought debt advice .

Unsurprisingly, the Consumer Credit Counselling Service (CCCS) has revealed that there has been a significant increase in the number of Brits seeking professional debt advice following the economic downturn. Despite a dramatic decrease in interest rates, loan and credit card repayments continue to trouble a number of borrowers.

Frances Walker, a spokesperson for the CCCS, said, ‘I think that there may be changes, in that people are learning that they should seek help as soon as they know they have a problem.’
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