NEWS...
BIS Discuss Policy Statement
Claire Aynsley, Head of Membership & Compliance (CSA/DBSG), met with BIS to discuss the Policy Statement on Requirement to send post-contract information to debtors who have gone away or who are in an IVA.
"DBSG Chair Leigh Berkley and I attended a stakeholder meeting with BIS earlier this month, to discuss the requirement within the CCA06 to send Notices (Statements, Arrears and Default Notices) to the last known address, and the implications this has on known gone-away accounts and for those debtors in an IVA.
"The meeting was well represented with individuals from the OFT, Insolvency Service, Citizens Advice, Money Advice Trust, BBA, FLA and HM Treasury amongst others.
"BIS confirmed there was an option available to change secondary legislation by amending Statutory Instrument 2007/1167. The amendment however would not prevent Notices being sent to gone-away or IVA accounts, but simply allow the information within the Notices to be reduced.
"BIS seemed to have ignored DBSG's original concerns which were highlighted a number of months ago, regarding the issue of sending Notices to gone-away addresses and the frustration this causes to those individuals in those properties, and the complaints that arise as well as cost implications for businesses. Their main focus was initially on how to prevent fraudulent activity.
"There was long discussion within the stakeholder group around gone-aways – what checks are made to confirm a gone-away, the trace process, what creditors do as compared to purchasers – and the clear consensus within the group was that sending ANY Notice (whether detailed or abridged) to gone-away accounts was impractical, uneconomical and potentially placing the business in breach of OFT Guidelines, possibly data protection and unfair relationship regulation.
"A similar discussion took place regarding IVA – debtors have entered into an arrangement to not be contacted by their creditors, yet they receive Notices to their address regarding their outstanding accounts. This leads to frustration and confusion – and again, it was agreed within the Group that any Notices would still confuse.
"The ecological issue was also raised and the impact of sending millions of letters each year has on the environment.
"BIS were unaware of these real issues and were fully acceptant of all concerns following the discussions.
"BIS fully accepted that their proposals to reduce the content of Notices does not address the main issues. Their next action is to re-group and take stock of the position using all of the information provided at the meeting and asked for further evidence and statistics where possible. They will report back to the Minister, however it would not make sense just before the election.
"Leigh called for a change to the Primary Legislation, and asked what would be required to start on this ladder. BIS advised a change to Primary Legislation is a lengthy process and the Secondary route was much quicker. Government would require a detailed argument as to why Primary should be changed. This would need to be backed up with evidence and benefit.
"Whilst the meeting was only called to discuss the content of abridged statements to gone aways and debtors in IVAs, the outcome was very positive with BIS being fully aware of the DBSG's concerns and all parties agreeing on the eventual outcome that would make sense for the industry and the consumer, to not send Notices to known gone aways and IVAs.
"The feeling Leigh and I have is, with a joined lobbying effort and clear evidence to support our case for a change to Primary Legislation, this could be achieved. It will be a lengthy process however.
"DBSG needs to collate evidence from Members to support the lobbying efforts and we will be making contact Members in the coming months with further information."
Original article, by Claire Aynsley, courtesy of DBSG.
