The Office of Fair Trading (OFT) has warned 13 debt companies that they need to improve their debt collecting practices in relation to consumer credit agreements. The move follows an increase in consumer complaints about debt collection methods.

The OFT says it has received complaints from consumers who have been chased for payment of debts they do not even owe. Some companies have failed to properly investigate debt disputes, or carry out sufficient accuracy checks on data received from creditor clients and/or credit reference agencies. Consumers in debt have been contacted at unreasonable times and intervals, and have been threatened with home visits when debts were disputed. Some companies have also refused to deal with, or bypassed third party consumer representatives, such as the Citizen's Advice Bureaux.

“It is unacceptable for debt collection businesses to engage in unfair practices and we will continue to take action where we find evidence of this,” comments David Philpott OFT Deputy Director of Consumer Credit. “One of our main priorities is to protect consumers who may already be vulnerable as a consequence of serious debt problems.”

The OFT sets out strict guidelines for the collection of debts that have arisen under consumer credit agreements.  The companies involved have been given four weeks to respond to the complaints. The OFT will then consider taking action against any business which fails to address the concerns raised, including revoking their consumer credit licences.