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Introduction
There are two OFT guidance documents which relate specifically to those consumers who are experiencing financial difficulty. These are Debt Management Guidance (issued in December 2001) and Debt Collection Guidance (issued in July 2003). They advise both Creditors and Debt Management companies what constitutes fair and unfair business practices.

Failure to adhere to this guidance may result in a business being stripped of its Consumer Credit Licence.

Third Parties
Lenders who use third parties (such as debt collectors and solicitors) must ensure that they also operate fully within the OFT guidelines.

Communication
Communication with clients must be done in a clear and accurate manner. There must be no question of the borrower being mislead.

False Representation
Lenders and their agents cannot falsely imply or state that action can or will be taken when it legally cannot.

Harassment
Lenders and their agents should not:
- contact debtors at unreasonable times and at unreasonable intervals
- pressurise debtors to sell property or raise funds by borrowing or extend their existing borrowing
- ensure that an accurate history of the debt is passed on to any third parties employed
- pressurise debtors to pay their debts in full, to make unreasonably large instalments or to increase payments when they are unable to do so

Deceptive or Unfair Methods
These are areas for concern for the OFT because inappropriate practices have existed in the past. The OFT will take a dim view of any Creditor who:
- contacts debtors directly and bypasses any appointed representatives.
- without reason operates a policy of refusing to negotiate with debt management companies.

Collection Charges
Such charges are not automatically acceptable to the OFT, even if they have been included in a Lender's contract. Any charges levied must be of a reasonable amount, proportional to the debt and necessary.

Debt Collection Vists
Any debt collector visiting a customer must not act in an unclear or threatening manner. They must not enter a property univited, nor should they refuse to leave if they are asked to do so

FINALLY, THE OFT GUIDANCE CLEARLY STATES THAT CONSUMERS HAVE A RIGHT TO REPRESENTATION AND THAT LENDERS SHOULD CONSIDER ALL REASONABLE OFFERS OF REPAYMENT