Debt Collection & Default Guidelines cont…
In attempting to carry out collection in default of payment, members of the Association should:
a) Not use oppressive or intrusive collection
procedures.
b) Not bring unreasonable pressure to bear on
the debtor in default of payment.
c) Not act in a manner in public intended to
embarrass the debtor.
d) Be circumspect and discreet when
attempting to contact the debtor by
telephone, SMS, email or by personal visit,
with due regard to the Data Protection Act
and OFT Guidance.
e) Ensure that all attempted contacts with
debtors are made at reasonable times and at
reasonable intervals.
f) Unless instructed otherwise, accept all
reasonable offers by debtors to pay by
instalments, provided acceptable evidence of
non-ability to pay is given.
g) Not use improper* means to obtain the
telephone number and address of a debtor
and treat all information supplied as private
and confidential unless specific authorisation
has been given by the debtor to disclose
information to third parties. (*Improper in this
connection would refer to actions in breach of
relevant legislation or in breach of the
Association’s code.)
h) In respect of 4g above, have specific regard
to Section 55 of the Data Protection Act
1998.
i) Not pressurise debtors to sell property or to
raise funds by further borrowing.
j) Not falsely imply by written or verbal means
that criminal proceedings will be brought, nor
that civil action has or will be instituted where
members are unable to do so due to legal
restrictions.
k) Ensure that collectors who use pseudonyms
can be identified within the members
organisation.
l) Have due regard and deal sensitively with
individuals where evidence has been given,
or is apparent, that the individual is
incapacitated by mental or physical disability.
m) When dealing with fee charging debt
advisory services, follow the Office of Fair
Trading Guidelines on debt management.
n) Offer maximum co-operation with the
debtor’s nominated or chosen Third Party.
Where the Third Party is an accredited
advisory service, and at first appointment and
upon request, give a period of up to 30 days
‘grace’ before re-commencing collection
activity.
o) Encourage debtors in financial difficulties to
inform members of their difficulties and then
respond sympathetically and positively on the
evidence provided. |
p) Take into consideration before determining
whether to enforce repayment, all information
supplied in relation to the reason for nonpayment,
which may include The Common
Financial Statement, or the debtor’s future ability
to repay. If the debtor has disclosed multiple
debt problems, inform them of the availability of
accredited advisory services. Where available,
provide in all relevant correspondence the name
or designation of a specially trained member of
staff who may be contacted regarding financial
difficulties.
q) Where a debt or the sum owed is disputed, as
soon as is practicable, supply information to the
debtor in support of the claim. Where no
information has been supplied by the creditor,
obtain the required support, or failing that cease
collection action.
5. Trace Guidelines
Each member shall:
a) In all contact, be circumspect and act with full
regard to the Data Protection principles.
b) Take all possible steps to verify that the person
traced is in fact, the debtor.
c) Verify data relating to a debtors whereabouts via
one or more of the following methods:
I. Public databases.
II. Sending soft letters.
III. Contacting other people.
IV. Investigative/Field enquiries.
d) Cease contact should it become apparent that
the located person is not the debtor, and carry
out further checks.
6. Purchased Debt Guidelines
Each member shall:
a) Timely advise the consumer that the debt has
been assigned.
b) Adhere to all relevant requirements under the
Consumer Credit Act 2006 and any other
relevant legislation.
c) In debt collection or trace activity comply with all
the principles of this code.
6. Conduct Regarding Clients
Each member shall:
a) Ensure fairness and transparency of contracts
made with clients.
b) Inform their clients of the true rates of charges for
services rendered.
c) Safeguard the security of collected monies.
d) Account and remit to their clients at least once a
month, or as otherwise agreed all monies
collected.
e) Ensure that by prior arrangement clients are able
to visit their premises for the purpose of auditing
and checking their accounts.
g) Not approach, induce or persuade staff in the
employment of a client to join the Member’s
organisation, although nothing in this clause will
prohibit the engagement by a member of such an
employee where a bona fide application is made. |
