OFT draft guidance on sections 77,78 and 79 of the Consumer Credit Act 1974

[Main man]

OFT draft guidance on sections 77,78 and 79 of the Consumer Credit Act 1974

25-09-2009

Summary


Citizens Advice welcomes the new guidance, which we believe will be of use to consumers and their advisers as well as business. We believe that the guidance is excellent, particularly the statement in part 5 of the draft guidance that non-compliance with the requirement of the Act. Nevertheless, we believe that the OFT should provide further clarification in the guidance on the following issues:

• A statement whether the issue of a default notice is considered to be enforcement
• A stronger ‘caveat’ in respect of the guidance on the affect of ‘if any’.
• The Guidance should state that it may be an unfair business practice for a creditor or owner not to have taken sufficient steps to ensure a properly executed agreement has been entered and that it is an unfair business practice not to ensure that a copy agreement is preserved or that sufficient information is available to reconstitute a true copy.
• Further guidance and greater clarity on what ‘documents referred to in executed agreements’ have to be provided, especially relating to insurance and warranties that are supplied along with credit and hire facilities.
• Further guidance, in due course, once the meaning of ‘enforcement’, and the effect of an agreement being unenforceable for non-compliance with ss77 – 79, has been before the courts.

[Amethyst]

Re: OFT draft guidance on sections 77,78 and 79 of the Consumer Credit Act 1974

Interesting read, thanks mike xx

[Alphageek]

Re: OFT draft guidance on sections 77,78 and 79 of the Consumer Credit Act 1974

Is there a link to the OFT publication anywhere?

[Curlyben]

Re: OFT draft guidance on sections 77,78 and 79 of the Consumer Credit Act 1974

Do you mean this one>>>>> Legal Beagles

[Alphageek]

Re: OFT draft guidance on sections 77,78 and 79 of the Consumer Credit Act 1974

Thanks, but no, that's the CAB's comments on the (draft) guidance issued by the OFT.

It's the OFT document I am looking for.

[Main man]

Re: OFT draft guidance on sections 77,78 and 79 of the Consumer Credit Act 1974

Must admit I had a look but could not find anything?

It maybe worth contacting CAB or the OFT for a copy of the full publication.

[Alphageek]

Re: OFT draft guidance on sections 77,78 and 79 of the Consumer Credit Act 1974

I have emailed CAB and OFT.

Will see what I get back.

[Alphageek]

Re: OFT draft guidance on sections 77,78 and 79 of the Consumer Credit Act 1974

Received a reply from the OFT.

Thank you for your email.

We have produced draft guidance for industry that sets out OFT's view on the responsibilities of a creditor under s77, 78 and s79 of the CCA.


Comments have been received from stakeholders representing consumers and industry. We had hoped to publish the guidance before the end of the year but are considering the impact of recent court judgements on elements of the draft before we publish.

Kind regards,

That'll be why no-one can find it then!

[Main man]

Re: OFT draft guidance on sections 77,78 and 79 of the Consumer Credit Act 1974

OFT to unveil new CCA guidance - 20/11/2009

The Office of Fair Trading has revealed at Credit Today’s Collections & Debt Sale and Purchase Conference that it will publish new guidance on compliance with the Consumer Credit Act in 2010.

The OFT told delegates that it will put out revised guidance early in the new year on compliance with requests for copies of credit agreements under sections 77 to 79 of the Act.

The regulator is awaiting the outcome of High Court test cases, in which consumers are claiming that their credit agreements are unenforceable under the act, to take into account any precedent court rulings before publishing the guidance.

The move follows a flood of cases in the county courts where borrowers have used the Act to seek to avoid repaying loans or credit cards. A recent case involving Royal Bank of Scotland and a customer, Phillip McGuffick, led to an expectation of new guidance emerging from the OFT on what constitutes enforcement under the Act and submitting copies of credit agreements when requested.

John Griffin, deputy head of the debt collection team at the OFT, said: "We have taken on board to recent developments and we are striving to provide more clarity on this issue."

The OFT also clarified that it will seek to publish an update on its debt collection guidance for the industry early in the new year, which will be published separately to the guidance on sections 77 to 79 of the Consumer Credit Act.

The update will not involve a formal consultation process and will take into account developments over tracing, disputed debt issues, debt sale and examples of unfair practices.