Callcredit response to OFT warning

Callcredit welcomes today's warning by the OFT about 'debt sale' scam companies who tell consumers that they can "buy" their debts from them, freeing them from liability.

Callcredit has been contacted by a number of consumers who had been given the impression that having "sold" their debts in this way it would mean that they would no longer have the debt reported on their credit file.

This is not the case.  The law does not let consumers sell their liabilities on like this unless the creditor agrees, so the presence of the debt, along with its payment history, will still be fully visible on relevant credit files.

Jan Smith, Industry Relations Director at Callcredit, said "When people find themselves in financial trouble, it is clearly unacceptable to offer them a route out that does not exist and then charge them for the privilege.  Companies cannot "buy" the debts you owe - you will still be liable to repay them.  The best way to tackle problem debts is to discuss them with your creditors and to seek advice from an independent agency if needed."

Consumers who find themselves in financial difficulty should contact independent debt advice agencies such as the Consumer Credit Counselling Service (CCCS) or National Debtline for advice.  If you are unsure what debts are shown on your credit file, you have a right to obtain it from Callcredit for review. www.callcreditcheck.com offers further details of how to manage your credit status.

ENDS

Notes to Editors

OFT press release is here

About Callcredit
• Callcredit is the UK's most innovative and customer-focused Credit Reference Agency, with an established reputation for service differentiation; focusing on listening to clients and creating innovative solutions that deliver real business value. Find out more at www.callcredit.co.uk
• Callcredit is one of six core businesses that form the Callcredit Information Group (CIG). CIG brings together experts across the fields of credit referencing, marketing services, interactive solutions and consultative analytics to enable our client base of businesses and consumers to make informed decisions using our innovative products and services. www.callcreditgroup.com