The OFT is warning companies collecting consumer credit debts to make sure they communicate clearly and fairly and do not mislead consumers after a Tribunal found a business unfit to hold a consumer credit licence. The First-tier Tribunal upheld the OFT's decision to revoke the consumer credit licence of Carltons Business Limited, a debt collection agency based in Dartford, Kent.

The decision has highlighted the need for credit businesses to check that when communicating with their customers they are clear, transparent and do not place undue pressure on the debtor.
The Tribunal, in dismissing Carltons' appeal found in particular that:

• Carltons lacked sufficient skills, knowledge and experience to operate a consumer debt collection business.
• Carltons did not have practices or procedures to deal fairly and properly with consumers.
• the payment demand letter was designed to look like an official or legal document, against OFT guidance.
• the managing director's decision to describe himself to debtors as a lawyer intended to create a misleading impression.
• Carltons was persistently obstructive in dealing with enquiries from the OFT and Trading Standards.

In its decision, the Tribunal referred in detail to the OFT's Debt Collection Guidance and also noted documents such as the guidance on standard letters, produced in association with the Credit Services Association and the Debt Buyers and Sellers Group.
David Fisher, OFT Director of Consumer Credit, said:
'This decision reinforces the need for licensed debt collection businesses to comply with the relevant OFT guidance, otherwise they risk losing their licences.

'These businesses need to treat consumers fairly and be....Read more from the OFT Website----> - The Office of Fair Trading