NEWS...
Deal Close on 'Gone Away' Rules
A new agreement between the government and debt buyers could save the industry millions.
The deal, which is being brokered by DBSG, means debt buyers and creditors won't have to send statements to the old addresses of 'gone away' debtors - if the government gives it the green-light.
Leigh Berkley, Chairman of DBSG, explained: "Hopefully the government will grant a temporary waiver for these 'gone aways' later this year, when the Consumer Credit Act comes in later this year.
"From October creditors must send regular notices or they will lose their enforcement rights. At the DBSG, we estimate that this could mean around 50 million letters could be sent to out of date addresses."
Following their recent meeting with the Department for Business, Enterprise and Regulatory Reform, the group was asked to submit their comments for an options paper, which is to be sent to John Hutton MP.
This all follows a new agreement on the timing of annual statements before and after debt sale - which is still subject to ministerial approval. To comply with the act, debt sellers must send a final annual statement once the sale has completed, with the buyer sending annual statements on the same date during subsequent years.
In related news, the government has also now conceded that the definition of 'arrears' as part of an arrears notice after sale should be on the debtor's plan, not those on the original amount. Similarly, debt buyers will now not have to send regular arrears or default notices to people with IVAs - unless of course they default on their new payment plans.
