OFT to enforce Common Financial Statement (CFS)

debt_doctor

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

fermi

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.pdf

debt_doctor

3.7

j. failing to allow for alternative, affordable, repayment amounts
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 Common

Financial Statement (or equivalent)

We would have particular concerns under circumstances in which a
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

equivalent).

DD