New Complaints Handling Rules

[Storm]

Extract from Credit Industry Article

Creditors and debt collection agencies have been warned that they need to have complaints-handling procedures in place in time to deal with new requirements under the Consumer Credit Act 2006.

Appropriate record-keeping administration systems must be designed and implemented, and staff must then be trained. Copies of the Financial Ombudsman Service leaflets must be obtained and notices prepared for places where the public have access. Professional indemnity insurance needs to be purchased.

From 6th April 2007 unsatisfied complainants can refer their complaints to the Financial Ombudsman Services, totally free of charge, and the FOS has the power to make awards of up to £100,000 if it finds in favour of the complainant. There is no downside for the complainant – if he loses it has cost nothing to use the service and he still has his normal legal remedies available should he wish to use them. For creditors and debt collection agencies, however, it is a different story. There is a charge to them for complainants using the FOS (£400) regardless of whether they win or loose, and any awards made against them are binding with no right of appeal.

The industry is concerned that this will lead to complaints against creditors and debt collectors for use of unfair and intimidating tactics against debtors and possible suspension of Consumer Credit Licences if complaints escalate.

[Adam Davies]

Thanks for that Storm,It seems heavily weighted
towards the debtor and i can,t see many creditors wanting to part with £400 so I think they will want all disputes sorted out "in house"
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[MelanieGiles]

And just to let you all know that this also includes complaints against insolvency practitioners! The Financial Ombudsman will hear anything now which relates to periods after 1 January 2007.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[go_4_broke]

Excellent news for the debtor anyway.

I'm not surprised the 'industry is concerned', they bl**dy well should be as the 'use of unfair and intimidating tactics' is their stock-in trade.

I would imagine the definition of whether the line has been crossed in terms of harassment will still be guided by the provisions of the Admin. of Justice act 1973 and it will be interesting to see how things fall out as the first rulings come through.

-Best

Please view my blog at www.go4broke.blogs.iva.co.uk

'6 years sticking my head into the Lion's mouth of debt !'