Debt Collection Agencies - 30 Day rule

*MF*

Apologies in advance if this has appeared elsewhere - I have looked but apart from the Thread on Debt Relief Orders - which is part of the notes below, I couldn't find anything on this 30 day rule - which I also thought might be of general interest.

Details:

Debt collectors have agreed with Government to give 30 days' breathing space to borrowers struggling to repay debts.

The new 30-day rule, agreed with the Credit Service Association (CSA), which represents debt collection agencies, will start once an accredited debt advisor has been appointed.

Consumer Minister Gareth Thomas said:

"This new 30-day rule will give people a breathing space to help them take control of their finances as well as encourage them to seek help from debt advisors.

"I welcome the CSA's recognition that this is an important and sensible commitment to have made to borrowers."

Kurt Obermaier, Executive Director of the CSA, said:

"We have an agreement to allow a 30-day breathing space in the hope and expectation that this will ease the pressure on the debtor and more likely result in a positive outcome for all."

The new 30-day rule is being written into the CSA's existing code of practice which governs their 300 members.

It means that debt collection agencies will not contact debtors to pursue debts for 30 days once they have been informed that an accredited debt advisor has taken on the case. This will allow an accredited debt advisor to negotiate with creditors and the collection agency so that a plan for repaying the debt can be agreed.

In addition CSA members will be required to inform borrowers of the availability of accredited advisory services.

A break of 30 days - with a possible extension of another 30 days - to borrowers in difficulty was part of a new set of 'fair principles' agreed following a credit card summit hosted by the Department for Business in November.

Debt Relief Orders
Consumer Affairs Minister Gareth Thomas also welcomes the news that debt relief orders will come into effect on Monday 6th April.

He said: "We want anyone in difficulty to be able to access the help they need.

"We know that many people are already struggling to stay on top of their bills and pay their debts so we are taking action to ensure consumers are in control of their finances and are treated fairly."

These orders will mean people on low incomes with limited debts who could not previously afford to go bankrupt will be able to write off their debts and start again after a period of 12 months.

This is not an easy option for people in debt - the insolvency will be a matter of public record and creditors will be able to apply to have the order revoked. But it will help those trapped in poverty.

From here:

http://www.wired-gov.net/wg/wg-news-1.nsf/lfi/172610


Repeat - apologies if this duplicates with another post anywhere.

fermi

They ignore the rules that they already have, so the difference this will make is?

*MF*

fermi wrote: »

They ignore the rules that they already have, so the difference this will make is?

I know, and fully understand, what you mean fermi

- but for a second relate it to Martin's thread about the FSA Consumer Panel

- and where he wants members to be telling them what problems are being experienced

- maybe posts from this Board about the widespread breeching of rules should be filling Martin's Thread to overflowing - worth a thought - surely? (I know it was related to mortgages but is that any reason the Consumer Panel are not made aware of the practices which take place in the real world?)

rog2

Must be honest, here, and say that I agree with fermi as to how debt collectors will, or will not, respect this new 'rule' - just look at how they already flaunt both OFT Guidelines and Government legislation.

However, I do agree that 'debtors' should make formal complaints if any breach of either guidelines or legislation is made by a debt collector.

The biggest problem, though, is making sure that debtors are aware of new 'rules'.

Numpty_Monkey

And where to make complaints might help:o

swampduck

I think this 30 day rule is open to interpretation in any way that the financial companies sees fit to suit them.

I have had a phone call each month from Calder Financial on behalf of Barclaycard since January offering me up to 5 alternatives of paying to avoid passing my debt to a DCA.
Every month each caller would tell me that if I had not accepted one of their very reasonable offers by the whatever date in February, March and April then my debt would be forwarded to a DCA.
I am making token payments and had told them that I was doing my own DMP and they would have to take token payments for six months when I would be in a position to make 1% payments. Each month I'm told this is not acceptable but they still have not forwarded the debt onto a DCA - only two more months to go!!
The 30 day ruling is very elastic in my case because it's been going since January!!!

Swampy

rog2

swampduck wrote: »

I have had a phone call each month from Calder Financial on behalf of Barclaycard since January offering me up to 5 alternatives of paying to avoid passing my debt to a DCA.

But isn't 'Calder Financial' already a dca?

swampduck

Calder Financial is the legal arm of Barclaycard!!

Swampy

Or at least so I have been told!!

rog2

swampduck wrote: »

Calder Financial is the legal arm of Barclaycard!!

Swampy

Or at least so I have been told!!

In that case, they will probably pass it on to Mercers in the first instance - Mercers are the 'in house' dca of Barclaycard - same meat, different gravy.

I_know_my_ABC_and_my_CMYK

fermi wrote: »

They ignore the rules that they already have, so the difference this will make is?

Good point, totally agree, unfortunately not worth the paper its written on :rolleyes:

I_know_my_ABC_and_my_CMYK

rog2 wrote: »

In that case, they will probably pass it on to Mercers in the first instance - Mercers are the 'in house' dca of Barclaycard - same meat, different gravy.

Yea but from what I have read I think the meat more than likely tastes better than the gravy.:eek: