OFT takes action against Aktiv Kapital

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From: http://www.oft.gov.uk/news-and-updates/press/today?prid=755221

OFT takes action against unfair debt recovery practices

122/10 23 November 2010

The OFT has imposed requirements on debt recovery company Aktiv Kapital to secure improvements to its debt collection and communication practices.

An OFT investigation found that Aktiv Kapital had been chasing people for disputed debts without properly investigating the issues in dispute, in breach of the OFT's debt collection guidance. The investigation also found that those being chased felt unreasonably pressurised by Aktiv Kapital.

Although Aktiv Kapital has taken action to address the practices that concerned the OFT, requirements have been imposed to ensure that future conduct of the same or a similar kind does not occur.

The wrong person being pursued for a debt is a common theme in complaints about the debt collection industry received by the OFT. This is often rooted in inaccurate or incomplete data being passed on by the owner of the debt when a debt is sold or its collection is sub-contracted.

The requirements imposed set out that Aktiv Kapital must:

• not pursue debts where it has been notified in writing that the debt is disputed until the dispute has been properly investigated - this includes cases where the person being chased for payment says that they are not the debtor in question
• ensure that its communications are not, or do not appear to be, threatening or to constitute unreasonable pressure
• deal sensitively with particularly vulnerable customers.

Ray Watson, Director of the OFT's Consumer Credit Group, said:

'We have taken action against Aktiv Kapital to address unsatisfactory practices and protect vulnerable consumers. Requirements have been imposed to ensure that these practices are not repeated'.

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Requirements are here in more detail:

requirements imposed on Aktiv Kapital (pdf 49kb)

Gordon_Hose

It's always good to see these companies being reigned in!

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NOTE FOR THE PUBLIC REGISTER UNDER SECTION 35 OF THE CONSUMER CREDIT ACT 1974 (THE ACT)

LICENCE NO: 510166

LICENSEE: AKTIV KAPITAL (UK) LIMITED

DETERMINATION OF MINDED TO IMPOSE REQUIREMENTS NOTICE

An adjudicator, acting on behalf of the Office of Fair Trading (OFT), served a notice on the licensee that he was minded to impose requirements on the licensee.

The adjudicator received both written and oral representations.

Having considered the representations, the adjudicator decided to impose the following requirements on the licensee:

1. Aktiv Kapital (UK) Limited shall comply with those elements of current CSA Guidelines, as amended from time to time, and the DCG which deal with (1) tracing and (2) the sending of debt collection letters. Aktiv Kapital (UK) Limited shall only send debt collection letters after all reasonable steps have been taken to verify that the subject being pursued is in fact the debtor.

2. Aktiv Kapital (UK) Limited, when a debt is clearly disputed, in writing, shall not continue any debt collection activity until all matters disputed have been properly investigated; and the individual informed of the outcome of the investigation; and shall keep consumers advised, in writing, of any delays in resolution of the investigation.

3. Aktiv Kapital (UK) Limited, where there is a dispute relating to the identity of the debtor, shall not oblige an individual to supply high-level ID (e.g. driving licenses, passports, full name, date of birth, signatures) to prove that they are not the debtor in question. A request for such information may be made where it is reasonable and proportionate to do so but where such a request is made it must be made clear to the individual at the time of the request that there is no obligation on them to prove that they are not the debtor.

4. Aktiv Kapital (UK) Limited shall ensure that when communicating with debtors in writing and/or by telephone, that all such communications adhere to the letter and spirit of the OFT’s Debt Collection Guidance, in particular to paragraphs 2.5 and 2.6. Aktiv’s communications shall not be, or have the potential, or appear to be, threatening, or to constitute unreasonable pressure.

5. Aktiv Kapital (UK) Limited shall, when a debt is claimed by a customer or authorised third party, to be statute barred, take it out of the collection process until that claim has been properly investigated and the status of the debt is determined. If it is established that the debt is not statute barred then collection activity can be resumed by Aktiv Kapital (UK) Limited on reasonable notice and explanation to the customer. If it is statute barred then any collection by Aktiv Kapital (UK) Limited must be in accordance with the Guidance at paragraph 2.14b of the DCG.

6. Aktiv Kapital (UK) Limited shall have due regard and deal sensitively with customers, and their authorised representatives, where evidence has been given to the company that the customer is incapacitated by mental or physical disability, is experiencing special hardship, or is particularly vulnerable.

7. Aktiv Kapital (UK) Ltd shall not invite or encourage debtors who have authorised third party representatives identified to the company, to make direct contact with the company.

8. Aktiv Kapital (UK) Limited, shall ensure transparency with customers in all written and verbal communications. In particular, in any communication there shall be a clear identification of the correspondent’s identity as owner or collector of a debt and of their membership of the Aktiv Kapital (Norway) group.

Notice of any appeal, which must be given within 28 days of the date on which notice of the determination is issued, and of its result, will be put on the public register.

DATE OF DETERMINATION: 27 OCTOBER 2010

itsnever2lateisit?

Looks like the OFT have found some teeth, were they in a jar by the bed?

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itsnever2lateisit? wrote: »

Looks like the OFT have found some teeth, were they in a jar by the bed?

Too little too late though. As normal.

FTW

http://www.credittoday.co.uk/news/news-item.cfm?news=2048[

Bwa-ha-ha-ha-ha!!!!

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Tiku Patel, group chief operating officer of Aktiv Kapital, saidd:
"We acknowledge the valuable role the OFT has in regulating our industry. Whilst the announcement today concludes the
dialogue we have had with the OFT over the past 18 months we will continue to work with them to ensure that our customers’ interests are best served. "

Their customers are the people they collect for and buy debts from. So yes, I'm sure they will!

In a statement the OFT added that Aktiv had taken action to address the practices that concerned the OFT, but added that the requirements have been imposed to ensure that future conduct of the same or a similar kind does not occur.

So very important to complain when/if these practices continue. :cool:

RAS

Love the quote fermi.

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RAS wrote: »

Love the quote fermi.

It is rather telling.

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Still getting daft behaviour from this lot.