Q. I am a solicitor undertaking a lot of debt collecting work. I have heard that the Office of Fair Trading (OFT) has issued guidance on unfair debt collection. Am I expected to comply?

A. Yes, you are required to comply with this guidance. Solicitors are covered by a group consumer credit licence, which is issued to the Law Society and is limited to activities arising in the course of practice. Anyone covered by a consumer credit licence must not engage in, among other things, unfair business practices. The OFT's guidance on unfair debt collection practices sets out the type of behaviour that the OFT considers to be unfair and which would call into question fitness to be covered by the group licence. Most of these practices would also be considered improper under the requirements of solicitors' professional conduct. Examples of the types of behaviour covered include:


  • Failing to investigate or provide proper details when a debt is queried or disputed;


  • Failing to deal with appointed third parties such as Citizen's Advice Bureaux or independent advice centres;


  • Pursuing third parties for payment when they are not liable;


  • Falsely implying or claiming authority - such as claiming to be working on court authority;


  • Contacting debtors at unreasonable times and/or intervals;


  • Claiming a right of entry when no court order has been obtained;


  • Misleading debtors by the use of official-looking documents such as letters made to resemble court claims.



    • The guidance can be found on the OFT's Web site at: www.oft.gov.uk. Search 'debt collection guidance'.


    Question of ethics is compiled by the Law Society's professional ethics guidance team. Send questions for publication to Austin O'Malley, the Law Society, Ipsley Court, Berrington Close, Redditch B98 0TD; DX 19114 Redditch