Social networking sites being targeted by debt collectors

Whilst we all consider social networking sites like Facebook and Twitter to be associated with the entertainment, communicating with friends, or simply making comments to let others know your thoughts, there are some people that use them for strictly business purposes. This includes those that want to find out information or try and make contact with people for something more than just adding them as friends!

It has been revealed that in some cases debt collectors have been targeting people that owe money through the use of social networking sites, posting messages on these popular sites. However, officials are concerned that people could soon find embarrassing and confidential details about their debts and finances making their way onto the Internet if this practise continues. There are concerns that messages posted on these social networking sites by debt collection firms could be seen by friend, family and even work colleagues of the person that the message has been left for.

With this in mind the Office of Fair Trading has now warned the debt collecting industry about using these social networking sites to contact people that owe them money. The OFT has now updated its guidelines with regards to debt collecting firms, which were last updated in 2006. The debt collection industry has also been warned about contacting people at locations that are deemed inappropriate such as hospitals.

An official from the OFT said: ‘In the present economic climate, with many people, including those who may be particularly vulnerable, in financial difficulties, it is crucial they are treated fairly by companies recovering their debts. This updated guidance makes clear the standards the OFT expects of all businesses involved in debt recovery, including debt collectors, banks and law firms.’

Tags: whilst, office of fair trading, debt collection firms, mind, family, Technology Internet, official, twitter

OFT launches campaign to stop loan sharks

For a number of years loans sharks have been causing much concern for campaign groups, finance industry officials, regulators, and consumers, with many people falling victim to the unscrupulous practices of unregulated lenders running dodgy operations.

The UK watchdog, the Office of Fair Trading, is now said to have launched a new campaign to warn consumers over the dangers of taking finance from a loan shark. Over the past couple of years more people have been unable to get finance from traditional lenders, and some have been forced to go to loan sharks, leaving them to pay huge amounts of interest and deal with spiralling debt.

It is estimated that around 165,000 may be at the mercy of illegal money lenders in the UK, and many of these people are low income earners living in poor areas of the country according to the Office of Fair Trading. A campaign has already been run by the watchdog, and has saved many people from these illegal lenders and resulted in a number of jail sentences for the lenders themselves.

A new campaign has now been launched by the Office of Fair Trading along with Trading Standards, and it is hoped that this new campaign will help more people to realise the dangers of borrowing from loan sharks and put even more of these illegal lenders behind bars.

Posters, leaflets, and an online advert are amongst the things that form the new campaign against loan sharks, with advertisements targeting those living in low income parts of the country in particular.

The Office of Fair Trading said: “If you have borrowed money from a loan shark, you haven’t broken the law – they have. Loan sharks cause misery to thousands of families and should be stopped.”

Tags: Loan shark, Moneylender, illegal money lenders, people falling victim, low income parts, finance industry, office of fair trading, finance

10 percent of Brits affected by scams

It has been revealed by the Office of Fair Trading that around 10 percent of Brits have been affected by scams in the past. This equates to around four million adults who have said that they have responded to what turned out to be a scam. Worryingly whilst 50 percent of those that had fallen for a scam had lost more than £50 to the fraudsters around 5 percent had lost more than £5000. Read more

Tags: Ethics, fraud, Financial Services Authority, Social engineering, Deception

Confidence tricksters duping lonely hearts online

These days the power of the Internet means that a rising number of people have been using the Internet in order to look at dating sites and more importantly to meet someone, and it can be incredibly easy to chat with ease to people through these sites and feel as thought you have got to know them. Read more

Tags: Social engineering, crime, Human behavior, Online dating service, Ethics, Online daters, Romance scam

Recreated paperwork could cause problems for borrowers

According to a recent report many lenders tend to misplace or lose loan and credit agreements, and in some cases this paperwork is even disposed of, which means that if and when the banks need to refer to the agreement for any reason they are having to recreate the agreement. Whilst this is not frowned upon there is one problem that has been highlighted, and this is the fact that the recreated document often has discrepancies that leave the consumer even worse off. Read more

Tags: Banking, credit, consumer credit lawyer, personal finance, Mortgage loan, office of fair trading, High Court

Lotto scam sees some elderly consumers lose life savings

There are many different scams in circulation at present, with the economic climate and recession having seen the number of scams in circulation rise and the number of people prepared to take a risk on these scams also increase. In many cases fraudsters that operate these scams target more vulnerable people such as the elderly, and this is what has been happening with a lottery scam that has seen some elderly consumers dwindled out of their life savings. Read more

Tags: Spamming, Social engineering, Lottery scam, office of fair trading, Lottery

Ministry of Justice warning over another scam

The Ministry of Justice has recently issued a warning over another scam that has been used to dupe many consumers in the UK and swindle them out of large sums of money. According to the MoJ fraudsters are cold calling consumers and pretending to be government officials. Read more

Tags: Ministry of Justice scams, claims management firms, fraud, upfront, fortune, office of fair trading, Ministry, Ministry of Justice

Banks make agreement following pressure from OFT

Following continued pressure from the Office of Fair Trading the banking industry in the UK has agreed that it will not only make current account charges clearer for customers but will also make it easier for customers to switch to another provider should they wish to do so. Read more

Tags: banks compensate customers, office of fair trading, damaging reports, bank agreement, Banking, fault, office, Association

Bogus pricing at centre of crackdown

Supermarkets and travel companies have found themselves at the centre of a crackdown over bogus discount pricing after a number of complaints were made by consumers. Read more

Tags: price crackdown, bogus discount pricing, whilst, official, bogus discounts, Pricing, sound, office of fair trading

OFT Slates Loan Company

The UK watchdog, the Office of Fair Trading, has recently slated a well known loans company that specialises in lending to those that have damaged credit and are unable to find traditional finance from regular High Street banks. Read more

Tags: circles, anger, fact, office of fair trading, yes loans, oft, credit, company

Watchdog makes pledge over bank charges

The UK consumer watchdog, the Office of Fair Trading, has recently promised the no matter what the outcome of the ongoing battle against the banks in relation to bank charges it will still continue to pursue these charges as unfair. Read more

Tags: initial rulings, senior official, bank accounts, overdraft charge claims, office of fair trading, cheque, bank charges, action

At least a million have their bank charge claims frozen

According to recently released figures at least one million consumers have their bank charge claims frozen, as the appeals relating to the original High Court decision continue. Read more

Tags: fair, banks, decision, office of fair trading, original ruling, bank claims

Banks filing further appeal over bank charges

The battle between the UK’s High Street banks and the Office of Fair Trading over bank charges has been raging for some time, and has been longer than most people imagined. Read more

Tags: half, industry, watchdog authorisation, baks, appeals court, Fair Trading, bank charges, office of fair trading

Appeals Court throws out bank charges appeal

Since the start of 2008 the High Court has been dealing with a battle between the Office of Fair Trading and the UK’s banking industry over the controversial issue of bank charges for unauthorised overdraft use, returned direct debits, and bounced cheques. Read more

Tags: appeals court, Appellate court, decision, office of fair trading, bank charges appeal, GBP, year, Bank charge

Elderly and indebted to be targeted by scammer

According to a recent report 2009 is a year that will see both the elderly and those with high levels of debt get targeted by scammers. Read more

Tags: minimise, truth, financial difficulty, elderly scams, lottery scams, incomes, office of fair trading, Lottery

Memo indicated that banks told that bank charges are probably unfair

This year’s High Court test case into bank charges saw round one go to the Office of Fair Trading, with the regulatory body being given permission to assess banks# terms and conditions, including overdraft charges, for fairness. According to the contents of a leaked memo that was sent to senior staff members at RBS and Natwest the OFT has concluded that the charges applied by the UK’s leading banks are indeed unfair. Read more

Tags: bank charges, Office of Fair Trading v Abbey National plc, rbs, bill, August, office of fair trading, year, test case

Watchdog to probe sale and rent back

The UK’s watchdog, the Office of Fair Trading, recently announced that it would be launching an investigation into sale and rent back scheme, which have been gaining popularity over recent months due to the rising levels of people facing repossession due to high mortgage arrears. Whilst the sale and rent back industry has claimed that this is an ideal solution for many struggling homeowners, many campaigners have expressed concern over how fairly sale and rent back customers are treated. Read more

Tags: office of fair trading, sale and rent back, change, office, Subprime mortgage crisis, bank, public improved protection, home insurance

OFT rejects banks’ main defence

The main defence put forward by UK banks just ahead of the bank charges super-case to be held in 2008 has been rejected by the Office of Fair Trading.
Read more

Tags: office of, office of fair trading, bank fees, bank charges, banks

Hips introduced today

Home insurance packs (Hips) are introduced today across England and Wales.

The Office of Fair Trading (OFT) also warned estate agents yesterday that it would get tough on those who were found in breach of the new regulations.

The packs are now mandatory on the sale of all four-bedrooms or more homes, with all other houses to be covered as the policy is rolled out in future months.

A ban can now be imposed by the OFT on any estate agent found to be in breach of the new Hips regulations, after the issuing of a Warning Order first.

Head of consumer protection of the OFT Mike Haley said that “it is important that agents are aware of their obligations and the possible consequences if they fail to comply.

“If an agent fails to comply, this could trigger an investigation into an agent’s fitness to continue estate agency work.”

Originally drafted in June 2006, the legislation has suffered many setbacks, including facing a parliamentary vote to decide whether Hips be scrapped, and also being delayed from its original introduction date on 1st June this year.

Tags: office of fair trading, england and wales, vote, fitness, protection, consumer, sale

Bank charges investigation to be widened by Office of Fair Trading

The investigation into illegal and unlawful charges imposed by banks has been going on for some time, with regulatory bodies in the UK looking into the amounts that banks have been charging customers that exceed their overdraft limit or in cases where cheques bounce or direct debits are returned. Read more

Tags: bank charges going, consumers, office of fair trading, bank charges, banks, overdraft, trading, ongoing investigation

Bank charge row

The British Bankers’ Association (BBA) has hit out angrily in retaliation to a Which? magazine report that claimed banks are trying to trick their customers.

The publication looked into bank charges and found that many banks are employing “underhand methods” to prevent consumers challenging the charges.

According to the report, those who attempt to challenge the banks can be threatened with account closure and having their details passed onto debt collectors.

“In an attempt to avoid paying consumers what they are due, we have found banks employing increasingly underhand methods,” said Doug Taylor from Which?

“It is important that the exposure of these tricks does not put people off reclaiming their charges, though, as that would be playing into the banks’ hands.”

In response to the claims made by Which?, BBA has launched a scathing counter attack, labelling the report “sensationalist” and “personally insulting”.

BBA says that it is perfectly reasonable for a bank to close a customer’s account when it is clear that the relationship has broken down.

Additionally, the organisation points out that a bank is acting within its rights if it chooses to use a debt collector if it has chased an individual a number of times.

“Which? is clearly trying to exploit its position as a consumer body by sensationalising what could be a useful piece of research,” said Angela Knight from BBA.

“The way in which Which? has approached this is not only sensationalist, it’s also personally insulting to the front line bank staff who do an excellent job serving their customers.”

Another report into bank charges, carried out by the Office of Fair Trading, is due to be published soon.

Tags: office of fair trading, research, british, Bank charge, banks, relationship, bank