Complaint Against: Paragon Finance plc
Licence No: 189829
Thank you for your email. I apologise for the delay in responding to you.
I am very sorry to hear about the difficulties you have been experiencing, however, the Office of Fair Trading (OFT) has no authority to become involved in disputes between consumers and traders, so we cannot offer you any direct help with the complaint or advise you directly in this matter. Our role is to protect the collective interests of consumers.
The above mentioned Act established a licensing system to protect the interests of consumers in the credit area. If a business wishes to undertake the collection of debts that arise from consumer credit agreements then the Act states that they are required to hold a consumer credit licence; this is issued by the OFT. The above trader holds a consumer credit licence. Under the Act, the OFT has a duty to consider the fitness of all traders who hold consumer credit licences.
In considering fitness we take into account whether a business has engaged in improper business practices. Where we receive complaints about the business practices of licensees, we investigate them and where appropriate we take enforcement action; that action depends on the evidence and circumstances. Action the OFT can take includes revoking, refusing or suspending a licence; or placing conduct requirements on the licence of the company or business in question (failure to comply with a conduct requirement can result in a financial penalty being levied).
The OFT has issued guidance to consumer credit licence holders engaged in the debt collection industry. The guidance is intended to ensure that debt collectors treat debtors fairly. Non-compliance with this guidance will call into question the fitness of licence holders and applicants. You can view our guidance at: The Office of Fair Trading: Debt collection practices
I have noted the details of your complaint, and we will consider this alongside any other complaints we have received with a view to any licensing action we may decide to take. If we do take any licensing action against this trader, it is likely that we would need to disclose your identity to this trader along with details of your complaint. I should therefore be grateful if you could sign the attached consent form and return it to me. Unfortunately, we cannot disclose any details about any action we may take, due to restrictions on the OFT relating to disclosure of information (Part 9 of the Enterprise Act 2002).
Providing copies of agreements regulated by the Act
As you may know, s63 of the Act covers how and when lenders must provide consumers with a first (and where appropriate second) copy of a regulated agreement. It is clearly in the lender’s best interests to retain details of the original agreement and any subsequent variations or changes made to it, particularly as consumers can request a subsequent ‘true’ copy of most types of agreement under ss77 and 78 of the CCA (and on payment of the appropriate fee). There are rules about what is likely to constitute a ‘true copy’ under these sections of the Act. Further, if a consumer does make a valid request for a copy of their agreements under these provisions and the lender does not comply with the request, the agreement may not be enforceable in the Courts, subject to any other mitigating factors.
Should you require specialist advice or assistance on the circumstances of your complaint (including in relation to the above provisions about copy requirements), you may wish to contact your local Citizens’ Advice Bureau (CAB) or seek advice direct from a legal advisor.
The Financial Ombudsman Service (FOS) can help with most complaints about consumer-credit products and services if the consumer has failed to satisfactorily resolve the matter directly with the financial institution itself.
FOS can be contacted at: The Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London, E14 9SR; telephone number, 0845 080 1800, or Financial Ombudsman Service
We would like to thank you once again for writing to us and bringing this matter to our attention.
Yours sincerely
Samit Patel
Enquiries and Reporting Centre (ERC)
Office of Fair Trading (OFT)
Licence No: 189829
Thank you for your email. I apologise for the delay in responding to you.
I am very sorry to hear about the difficulties you have been experiencing, however, the Office of Fair Trading (OFT) has no authority to become involved in disputes between consumers and traders, so we cannot offer you any direct help with the complaint or advise you directly in this matter. Our role is to protect the collective interests of consumers.
The above mentioned Act established a licensing system to protect the interests of consumers in the credit area. If a business wishes to undertake the collection of debts that arise from consumer credit agreements then the Act states that they are required to hold a consumer credit licence; this is issued by the OFT. The above trader holds a consumer credit licence. Under the Act, the OFT has a duty to consider the fitness of all traders who hold consumer credit licences.
In considering fitness we take into account whether a business has engaged in improper business practices. Where we receive complaints about the business practices of licensees, we investigate them and where appropriate we take enforcement action; that action depends on the evidence and circumstances. Action the OFT can take includes revoking, refusing or suspending a licence; or placing conduct requirements on the licence of the company or business in question (failure to comply with a conduct requirement can result in a financial penalty being levied).
The OFT has issued guidance to consumer credit licence holders engaged in the debt collection industry. The guidance is intended to ensure that debt collectors treat debtors fairly. Non-compliance with this guidance will call into question the fitness of licence holders and applicants. You can view our guidance at: The Office of Fair Trading: Debt collection practices
I have noted the details of your complaint, and we will consider this alongside any other complaints we have received with a view to any licensing action we may decide to take. If we do take any licensing action against this trader, it is likely that we would need to disclose your identity to this trader along with details of your complaint. I should therefore be grateful if you could sign the attached consent form and return it to me. Unfortunately, we cannot disclose any details about any action we may take, due to restrictions on the OFT relating to disclosure of information (Part 9 of the Enterprise Act 2002).
Providing copies of agreements regulated by the Act
As you may know, s63 of the Act covers how and when lenders must provide consumers with a first (and where appropriate second) copy of a regulated agreement. It is clearly in the lender’s best interests to retain details of the original agreement and any subsequent variations or changes made to it, particularly as consumers can request a subsequent ‘true’ copy of most types of agreement under ss77 and 78 of the CCA (and on payment of the appropriate fee). There are rules about what is likely to constitute a ‘true copy’ under these sections of the Act. Further, if a consumer does make a valid request for a copy of their agreements under these provisions and the lender does not comply with the request, the agreement may not be enforceable in the Courts, subject to any other mitigating factors.
Should you require specialist advice or assistance on the circumstances of your complaint (including in relation to the above provisions about copy requirements), you may wish to contact your local Citizens’ Advice Bureau (CAB) or seek advice direct from a legal advisor.
The Financial Ombudsman Service (FOS) can help with most complaints about consumer-credit products and services if the consumer has failed to satisfactorily resolve the matter directly with the financial institution itself.
FOS can be contacted at: The Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London, E14 9SR; telephone number, 0845 080 1800, or Financial Ombudsman Service
We would like to thank you once again for writing to us and bringing this matter to our attention.
Yours sincerely
Samit Patel
Enquiries and Reporting Centre (ERC)
Office of Fair Trading (OFT)
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