The Government wants to see fair treatment of individuals in problem debt, and there is a range of work underway across government and regulators to promote responsible debt collection practices.<\/p>
In June 2023 the FCA, Ofgem, Ofwat and Ofcom published a joint letter via the UK Regulators\u2019 Network (UKRN) setting out how firms in their respective sectors should support customers in financial difficulty. On 18 March 2024, the same group of regulators issued further guidance, setting out their shared expectations on firms\u2019 debt collection practices. This is to ensure that firms support customers in debt and that firms\u2019 collection practices are not causing harm to customers.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4639", "label" : {"_value" : "Biography information for Bim Afolami"} } , "answeringMemberConstituency" : {"_value" : "Hitchin and Harpenden"} , "answeringMemberPrinted" : {"_value" : "Bim Afolami"} , "dateOfAnswer" : {"_value" : "2024-03-22", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2024-03-22T11:15:07.817Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "14"} , "answeringDeptShortName" : {"_value" : "Treasury"} , "answeringDeptSortName" : {"_value" : "Treasury"} , "date" : {"_value" : "2024-03-14", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Debt Collection: Regulation"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Chancellor of the Exchequer, if he will bring forward legislative proposals to improve the regulation of debt collection practices.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4651", "label" : {"_value" : "Biography information for Dan Carden"} } , "tablingMemberConstituency" : {"_value" : "Liverpool, Walton"} , "tablingMemberPrinted" : [{"_value" : "Dan Carden"} ], "uin" : "18774"} , {"_about" : "http://data.parliament.uk/resources/1611727", "AnsweringBody" : [{"_value" : "Treasury"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1611727/answer", "answerText" : {"_value" : "
The independent Financial Conduct Authority (FCA) is responsible for the regulation of debt collection activity. Where debt collection firms take steps to recover debts that have arisen under consumer credit agreements, they are required to do so according to the FCA\u2019s principles, rules and guidance.<\/p>
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In particular, firms are required to treat customers fairly and to have policies in place for the fair and appropriate treatment of vulnerable customers. Additional requirements apply in relation to the recovery of debt from customers with mental capacity limitations.<\/p>
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The FCA has published guidance for firms on the fair treatment of vulnerable customers. In 2023-24, the FCA plans to evaluate the action firms have taken and whether we see improvements in the outcomes experienced by vulnerable consumers. The guidance can be found in the link below:<\/p>
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