NEWS...
DBSG Response to BERR Announcement
The DBSG has released a statement following BERR's announcement.
Below is the full response by the DBSG to BERR's recent decision concerning the continued sending of letters to "gone aways":
"Throughout 2008 the Debt Buyers and Sellers Group (DBSG) has been lobbying against some of the new requirements for post-contractual information set out in the Consumer Credit Act 2006 (CCA06).
"The Act calls for the provision of relevant and clear information to consumers about the state of their credit account, and the DBSG wholeheartedly supports the overall objectives of CCA06, however the Act makes no exception for known "gone aways", or for debtors who have entered into an IVA, and it is for these exceptions that the DBSG has been lobbying; it simply makes no sense to continually supply statements and notices by post to an address which is known to be incorrect, or where an IVA, which is after all a statutory arrangement, is in place.
"It was therefore a great disappointment to the group to receive a response from the Department for Business, Enterprise and Regulatory Reform (BERR) suggesting that the most appropriate solution would be to amend the Consumer Credit (Information Requirements and Duration of Licences and Charges) Regulations 2007 to allow for amended statements and notices including abbreviated financial information, to be sent in both cases.
"The reasoning of Gareth Thomas, Minister for Trade, Investment and Consumer Affairs, is that removing financially sensitive information would deter identity fraud, while still meeting the requirements of the CCA06, but really this misses the point. Yes, removing financially sensitive content from the letters could possibly reduce the risk of identity fraud when landing on the doorstep of a 'gone away', but will do nothing to alleviate the distress and confusion caused to the innocent subsequent occupier receiving numerous pieces of correspondence despite informing the senders that the former occupier has moved on, and will only exacerbate things for a borrower who has already entered into the protection of an IVA.
"The other issue is the practical challenge and massive environmental impact of sending so many statements and notices which are absolutely unnecessary and do not contribute to the objectives of the Act. Apart from the obvious challenge to members of deciding when the abbreviated information should be sent, it is an environmental disaster and a sheer waste of time for the industry to send up to 50 million pieces of post to the addresses of known gone aways and IVAs. The new policy announcement adds complexity to the process, adding extra confusion to collectors and innocent recipients, while presumably providing debtors who do eventually see the letters with further excuses for non-payment."
Original article courtesy of DBSG. For further information visit www.dbsg-uk.com/dbsg
