New powers for OFT in clamp down on rogue debt companies welcomed
Lee Manning, R3 President comments:
“Enabling the OFT to suspend a consumer credit licence with immediate effect – as opposed to being subject potentially to a two year appeal – is a significant step forward in consumer protection and is to be applauded. This will hit rogue companies who provide goods or services on credit, lend money, collect debts or help people with debts. This includes payday loan and debt management companies who break the rules - they have arrived in force on the internet and on our high streets, while regulation has been slow to keep up.
“Previously a rogue debt firm could appeal the OFT’s decision and continue trading during the appeal period – which could last up to two years. This was clearly not working in the customer’s favour. We would urge consumers, despite the pressures debt brings, to think carefully about who to approach for support in tackling debt problems and ensure the provider is professional and qualified, such as a licensed insolvency practitioner.”
R3 Press Office