Interest Rate Action 2 of 3 – Complain

The Licence and The Regulations

The Office of Fair Trading (OFT) is responsible both for licensing operators in the credit industry and for the development of the Consumer Credit Regulations 2008. Both these are very important to us.
There are two licences, the Consumer Credit Licence and the Business Credit Licence. My concern is with the consumer variant, though I imagine the differences are of detail rather than principle.
Credit Licence. No company may be involved with lending or recovery without a licence, and no person may offer personal advice without being covered by one. And the OFT does revoke licences, so the terms of the licence are important.
It is worth writing to the licence section of the OFT complaining of the hike in rates that you have experienced and again using the terms unfair and unreasonable. If you want to specify any particular part of the licence you feel has been breached it is worth going to the OFT website and reading the guidelines. But it is essentially enough to point out this action is a misuse of any powers the company has, and the matter needs to be examined by the OFT.
Any complaint is taken seriously by them, but a lot of complaints is even better!
Regulations. The regulations arm of the OFT is very concerned with the concept of unfairness in relations between companies and customers, and this applies right across the world of business activity, not just finance.
It does recognise unfair advantage as being a very bad thing for companies to make use of. The Consumer Protection Regulations 2008 are pretty comprehensive and have 31 practices that are out and out considered not acceptable, and has a deal of other regulation with the emphasis that the regulations are not limited to the letter of the paragraphs but are concerned with the spirit of them.
This is a tremendous advance on petty legal approaches; it means that companies are expected to acknowledge a moral sphere to their actions. Not just what the words say, but the underlying meaning too.
In contacting this section you should emphasise that the company has taken unfair advantage by its force majeure imposition of an interest hike that is not justified by anything you have done, nor by any national change in interest rates.
The address of the OFT is
Office of Fair Trading
Fleetbank House
2-6 Salisbury Square
London EC4 8JX

Mark the outside of your envelope Credit Licence or Regulations 2008 and the letter will find its way to the right section. You will probably get a letter back saying the OFT does not deal with individual cases, but that the complaint has been logged on their records. And that latter is what you want.
The more the better.
See also Interest Rate Action 1 of 3 – Complain which deals with the complaints procedure of the creditor company and Interest Rate Action 3 of 3 – Complain Which deals with the Financial Services Authority.

Joseph Harris
Debt Control Man

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4 Responses to “Interest Rate Action 2 of 3 – Complain”

  1. Credit Crunch » Interest Rate Action 2 of 3 - Complain Says:

    […] Professional Finance Article Site: On this site, you can find all the related finance articles. You … wrote an interesting post today onHere’s a quick excerptThe Licence and The Regulations The Office of Fair Trading (OFT) is responsible both for licensing operators in the credit industry and for the development of the Consumer Credit Regulations 2008. Both these are very important to us. There are two licences, the Consumer Credit Licence and the Business Credit Licence. My concern is with the consumer variant, though I imagine the differences are of detail rather than principle. Credit Licence. No company may be involved with lending or recovery without a licence, and no person may offer personal advice without being covered by one. And the OFT does revoke licences, so the terms of the licence are important. It is worth writing to the licence section of the OFT complaining of the hike in rates that you have experienced and again using the terms unfair and unreasonable. If you want to specify any particular part of the licence you feel has been breached […] […]

  2. AlexM Says:

    I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you down the road!

  3. debtcontrolman Says:

    Thank you Alex. I am aiming to help people avoid debt, control it and manage debt problems to their best advantage.

    Joseph Harris

  4. Alex Says:

    Your blog is interesting!

    Keep up the good work!

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