DRF welcomes New OFT powers to suspend rogue debt companies’ consumer credit licences

Debt Resolution Forum, the training, monitoring and complaints handling body for fee-charging debt solutions companies, today (July 19 2012) welcomed the announcement by Consumer Affairs Minister, Norman Lamb, that the Office of Fair Trading (OFT) is to be given new powers to suspend a company’s consumer credit licence where there is “an urgent need to protect the interests of consumers”.

Commenting on the announcement, DRF chairman and CEO of debt solutions company, ClearDebt, David Mond said:

“DRF welcomes this decision which, we believe, will ultimately create more consumer confidence in the compliant debt sector companies that are members of trusted trade associations like DRF.

“Where debtors are obviously being ripped off this measure is overdue – we know the OFT has been immensely frustrated by its inability to stop consumer harm continuing whilst a revocation process goes on without publicity.

“Our only concern is that the definition of “urgent need” is drawn sufficiently tightly to ensure that only absolutely clear cases of consumer detriment are put out of business in this way and that companies who face accusations that are less clear-cut are still afforded due process”.

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For further comment please contact:

Andrew Smith- Andrew.smith@debtresolutionforum.org.uk, 0161 968 6825, 0791 240 7532