Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department has guidance on whether debt collection companies can be sanctioned for not providing (a) suitable and (b) timely methods to contact them to dispute claims.

The independent Financial Conduct Authority regulates debt purchase, collection and administration arising from credit agreements.

The FCA has an extensive Handbook (particularly CONC 7) setting out their expectations of firms undertaking the collection of these debts, including firms’ approach to contacting customers in arrears (CONC 7.9) and handling disputed debts (CONC 7.14.1R). The FCA utilises a range of supervisory and enforcement tools to deal with those breaching these rules. In addition to this, the enhanced requirements under the incoming Consumer Duty, particularly around the FCA’s expectations on consumer support, will aim to ensure debt collection firms provide a higher standard of care to their customers.