The Office of Fair Trading (OFT) has announced draft guidance for consumers which would allow them to request information pertaining to their credit agreements.
According to the OFT, it is consulting on the guidance due to concerns that creditors are not providing enough information to their customers and debtors may be “misled” into thinking that their debts may be written off .
OFT director of consumer credit Ray Watson said the guidance sections have led to a “great deal of confusion”.
“This guidance is to clarify the legal position and the OFT view on standards expected of the industry and to make consumers aware that they may be at risk if they seek to use these sections to avoid paying legitimately owed debts,” he commented.
The UK Cards Association responded to the consultation from the Department for Business, Innovation & Skills titled Review of the Regulation of Credit and Store Cards earlier this week.
Melanie Johnson, chair of the association, commented that it is important for consumers to take as much control over their finances as possible.