OFT bars RBS debt collecting that puts homes at risk

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OFT bars RBS debt collecting that puts homes at risk

This is a duplicate of the Blog Entry made on 11th January 2013 18:21.

*Regulator imposes requirements on Royal Bank of Scotland's use of charging orders - a way of collecting unsecured debts that could see borrowers...

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[Undercover Elsa]

Re: OFT bars RBS debt collecting that puts homes at risk

Excellent!!!

In some cases the banks were using charging orders to secure disproportionately small debts as low as £5,000.
David Fisher, OFT director of consumer credit, said: "Lenders are entitled to use charging orders but they must do so proportionately and not to secure relatively small amounts of debt.

That will be a relief for many of us

[SaltnVinegar]

Re: OFT bars RBS debt collecting that puts homes at risk

About time too, the use of CO's by creditors has been abused now for several years. Hopefully such restrictions will be placed on other lenders also............

[ken100464]

Re: OFT bars RBS debt collecting that puts homes at risk

Cant believe MBNA is not on that list of shame.

If OFT had taken ours as an example they couldnt have described it better. Oh yes 2009 aswell.

So they obviously werent looking very hard if they missed this bunch

[Undercover Elsa]

Re: OFT bars RBS debt collecting that puts homes at risk

Exactly. Mind you now that the restrictions are public then other banks/DCA's must surely watch their step as it's now clear that it's not acceptable.
I think it's safe to say that internet forums such as AAD have to take a lot of credit for this for raising public awareness and encouraging the complaints to OFT.

[ken100464]

Re: OFT bars RBS debt collecting that puts homes at risk

Too true Elsa.

Adds weight to what we are trying to achieve with ours. They didnt just take OH because she was naughty and wasnt paying they took her very cynically because they knew she wouldnt fight.

Alot of why this shower is trying to leave methinks. Lots and lots of dirty secrets which they know in time will be revealed.

Get out while the brand is still intact.

[jon1965]

Re: OFT bars RBS debt collecting that puts homes at risk

Have a read of the comments made by the Torygraph readers. These are the really scary ones, these people have NO idea of what real life is like, they make DM readers look warm and fluffy

[ken100464]

Re: OFT bars RBS debt collecting that puts homes at risk

They talk from a position of ignorance.

One life event from they themselves being in a position of DCA's baying at the door.

[Spud]

Re: OFT bars RBS debt collecting that puts homes at risk

Completely agree Ken,

Sometimes ( A lot of the time actually) It is one main change or event that turns events from a creditworthy "on top of things" everyday decent hardworking person to a person trapped by debt that they can no longer afford (Through no fault of their own). Comes with that all the ill feelings/Harassment and possible health issues.

Nothing has changed about the person - They are still decent hardworking people but now for some reason society now regards them as "Second class" (Or that's how it feels !!)

How many of those who are harassing debtors now are only just one event away from being on the "other side"?

They either dont recognise it or more likely...Because they have never experienced it, have no concept of it.

If it happened to them, Their attitude would soon change.

Sorry, I went slightly off topic

I read this with RBS with great interest - Hopefully it will start to set a precident for other lenders/Judges

[ken100464]

Re: OFT bars RBS debt collecting that puts homes at risk

I think if you read between the lines that creditors were already reacting to this.

Attachment of earnings orders are soaring while CO's are drifting slowly down.

Interestingly I have read there is a tussle between the MOJ and OFT on this. OFT is wanting the lower limit to be £25000 but MOJ wants it at £1000.

Totally agree with the second rate citizen remarks.

People dont understand the industry is after a certain type of client. One that is just about treading water. One that is paying interest but not really getting anywhere.

What they certainly dont want is someone who just borrows and pays back attracting no interest at all.

So they cleverly tempt you. High credit limits. Hmmmmm is that because you are a good risk or is it because they are hoping beyond hope you bite. Nice balance transfers, cashbacks all there to entice you.

But for all the good clients slavishly paying their heavy burden of debt then some just tip over the edge because of the life event.

But the banks aint really that clever. If they reacted differently they could keep us all in debt slavery and just pick up where they left off when our circumstances allow.

They dont because greed knows no bounds.

Hence places like this. Many fight back because they have no hope left. They get pushed to look for hope.

You watch you learn you fightback.

8 months ago I didnt have a clue. I am no where near as clued up as some of the guys and gals on here. What I do know is they wont push us around anymore and we are well on our way to debt freedom.

[Spud]

Re: OFT bars RBS debt collecting that puts homes at risk

Sounds a very familiar story

I'm not as clued up as some but I'm learning fast

This (And other sites - You all know the ones ) have helped me learn and fight back. They have settled my anxiety - Anxiety that comes from not knowing, Not having the inside knowledge and support that all members here give freely and unquestionably.

If I can help others here I will. Its a very old saying, "An oldie but a goody" ( Waiting for the backlash!!!)

Knowledge is power - Knowledge conquers fear

How true

[julian]

Re: OFT bars RBS debt collecting that puts homes at risk

Isn't it about time that the Law Council, or Solicitors' Overseers mandated the same for the likes of Restons and Optima Legal? Or should we just wait and cheer when their revenue sources dry up?

These people are the hounds of hell working for the likes of MBNA and HSBC.

[Never-In-Doubt]

Re: OFT bars RBS debt collecting that puts homes at risk

If they raised it to £25k the scum that is Rectums & Optima would slowly die a slow death.....

I think a Which? Appeal might be in order....