WIREDGOV

The OFT has today received a super-complaint from Citizens Advice relating to marketing and charging practices which Citizens Advice suggests may be used by businesses offering credit brokerage and debt services.

Citizens Advice has identified two business practices which it has asked the OFT to look at.  They are:

• Firms cold-calling consumers by telephone and text to promote consumer credit products and ancillary services, including debt management.
• Firms taking upfront fees for credit services, often by persuading consumers to give them their banking details, sometimes taking unauthorised deductions.

The OFT will now consider the issues raised in the super-complaint in order to establish whether or not any feature, or combination of features, in the relevant market is or appears to be significantly harming the interests of consumers.

The OFT will shortly invite interested parties to provide any evidence which may be useful to its assessment.  It will publish a response to the super-complaint within 90 days.

NOTES

1. The Enterprise Act 2002 (the Act) makes provision for designated consumer bodies to make super-complaints. A super-complaint, as defined by section 11(1) of the Act, is a complaint submitted by a designated consumer body that 'any feature, or combination of features, of a market in the United Kingdom for goods or services is or appears to be significantly harming the interests of consumers'. Citizens Advice is a designated consumer body. Within 90 days after the day on which a super-complaint is received, the OFT must say publicly how it proposes to deal with it.
2. For more information on super-complaints please see the super complaints area of the OFT website
3. For information on the Citizens Advice super-complaint, see www.citizensadvice.org.uk/cashing_in.htm