We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
OFT to enforce Common Financial Statement (CFS)

debt_doctor
Posts: 4,595 Forumite


The October 2011 edition of the OFT debt collection guidance has just been released, and for the first time places an insistance on all Consumer Credit Licence holders to accept offers made via the principles of the CFS, or provide substantial reason as to why not.
The CFS is used by the debt advice industry to calculate an affordable offer to creditors based upon reasonable allowances for expenditure.
This is a massive boost for debt advisers, as now, if offers via the CFS are not accepted, then a formal complaint and FOS action could, (would) follow.
Potentially now, we see that we could stop (perhaps adjourn) court action if taken after a payment offer via the CFS has happened and been rejected / ignored, and could even stall a creditors bankruptcy petition for creditors other than issued by HMRC or other non licence holders.
It is a superb new tool in the debt advisers box.
DD
The CFS is used by the debt advice industry to calculate an affordable offer to creditors based upon reasonable allowances for expenditure.
This is a massive boost for debt advisers, as now, if offers via the CFS are not accepted, then a formal complaint and FOS action could, (would) follow.
Potentially now, we see that we could stop (perhaps adjourn) court action if taken after a payment offer via the CFS has happened and been rejected / ignored, and could even stall a creditors bankruptcy petition for creditors other than issued by HMRC or other non licence holders.
It is a superb new tool in the debt advisers box.
DD
Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***
0
Comments
-
The new guidelines are here if people want to read them.
https://forums.moneysavingexpert.com/discussion/3558031
Or direct in pdf from the OFT site:
http://www.oft.gov.uk/shared_oft/consumer_leaflets/credit/OFT664Rev.pdfFree/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0 -
3.7
j. failing to allow for alternative, affordable, repayment amountsFinancial Statement (or equivalent)
when a reasonable proposal is made by a debtor or a third party
representative acting on his behalf (for example, a debt adviser)
k. not having appropriate regard to the principles of the CommonWe would have particular concerns under circumstances in which aequivalent).
debt recovery business rejects a debtor's repayment offer as being
unacceptable – but cannot subsequently demonstrate to our
satisfaction why the offer was considered to be unreasonable (for
example, if assessed against the Common Financial Statement or
DD
Debt Doctor, Debt caseworker, Citizens' Advice Bureau .
Impartial debt advice services: Citizens Advice Bureau Find your local CAB *** National Debtline - Tel: 0808 808 4000*** BSC No. 100 ***0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.4K Banking & Borrowing
- 252.9K Reduce Debt & Boost Income
- 453.3K Spending & Discounts
- 243.4K Work, Benefits & Business
- 598K Mortgages, Homes & Bills
- 176.6K Life & Family
- 256.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards