A first draft in response to the Office of Fair Trading’s consultation on revised debt management guidance. DRF outlined the implications for the future.
DRF has now completed a first draft response to the Office of Fair Trading’s consultation on revised debt management guidance. You can download the consultation document from this web page.
This has huge implications for the future of the way all of us do business, including:
- Debt solutions companies becoming responsible for the compliance of their lead introducers (failure to do this could result in the loss of your licence)
- Annual independent audits of debt solution companies’ compliance (DRF members already have this)
- Vital importance of independent, accredited training for all staff (DRF members have CertDR to rely on)
- Possible change in criteria for making payments in debt management plans which could undermine the principle of making pro-rata payments to creditors
- Possible requirements for detailed information on fees and charges that could affect all advertising
- Possible banning of debt solutions companies using internet PPC advertising and social networking sites such as Facebook and Twitter
- Possibility of charitable debt advisors being exempt from requirement to obtain accurate income and expenditure information from debtors
… And much more.
Doubtless you will all be making your own representations to the OFT on this document (it must be with the OFT by Monday, 5 September), but I would welcome your thoughts on the submission DRF is making on your behalf.
For the moment, I would like the debate to be confidential, between members, so to comment, please log in to DRF’s private members forum atwww.debtresolutionforum.org.uk/forum and go to the “Regulatory Matters “ Section, where you will find a section entitled “Office of Fair Trading – advice and announcements” and, within that, a thread entitled “ OFT Debt Management Guidance Consultation – Members views and opinions”: That contains our draft response, and you can post your own views there.
If you want your thoughts to be taken into consideration, you need to post no later than by noon on Friday September 2 so that your views can be factored in.
All members have been given log-in information, but if you require assistance, please email: Andrew.Smith@debtresolutionforum.org.uk
With very best wishes and I hope that you have all enjoyed your summer holidays.
Debt Resolution Forum Chairman