Tackling misinformation to reduce consumer harm

The Credit Services Association (CSA), the trade body representing the UK debt purchasing and debt collection industry, has published new guidance to address widespread and harmful misinformation about Deeds of Assignment (DOA) and Subject Access Requests (SARs). The guidance follows discussions with the Information Commissioner’s Office (ICO).

The new guidance is available on the CSA website and has been produced to create awareness of a growing trend in consumers being wrongly advised that they are entitled to receive a Deed of Assignment (DOA) when their debt is sold or passed to a debt collection firm. Some consumers are also being incorrectly told to request a DOA through a Data Subject Access Request (DSAR) under the UK General Data Protection Regulation (UK GDPR), and that a firm’s failure to provide the document makes the debt unenforceable or means it does not have to be repaid.

This is incorrect. It confuses the purpose and content of a DOA and of the right of access under the UK GDPR. Consumers may spend time and money pursuing complaints or legal action that will not result in their debts being written off. This misinformation may also waste court and regulatory resources and delay consumers from taking effective steps to address their finances. 

Following conversations with the ICO, the CSA has produced the guidance to help dispel myths about DOAs, DSARs and regulatory requirements under the UK GDPR, including:

• Myth #1 - Firms must provide a DOA if it is requested.

• Myth #2 - Refusal means the debt does not have to be repaid.

• Myth #3 - It means their debt is unenforceable.

• Myth #4 - They should complain to the ICO or take civil action in order to access the entire DOA document.

The information will help consumers who are confused or unsure about the documents they are entitled to access when their debt is sold or passed to a debt servicing firm, and most importantly, where they can find trusted resources and support if they are in financial difficulty.

Chris Leslie, CSA chief executive commented, “Debt purchasing and debt collection firms are committed to understanding their customers’ circumstances and finding affordable, sustainable repayment solutions. However appealing online claims about DOAs, DSARs and the writing off of debts may sound, they are often based on incorrect interpretations of regulation and legislation. They can mislead consumers, costing them valuable time and money in the process, and prevent them from getting the help they need. We want to challenge that misinformation and help consumers find accurate, trustworthy information. This article, produced with the support of the ICO, explains the facts and addresses the most common misconceptions.

“In this case, it is the incorrect claim that a consumer is entitled to a copy DOA, a commercial agreement between the creditor and a debt purchaser, and largely irrelevant to the debt that is due. In our experience, claims and complaints on this topic have been routinely dismissed; but they cost consumers time and money in the process - and it is the customers who bear the consequences, not those dishing out the misinformation. This article is an attempt to ensure the right information is in the public domain and to prevent the accompanying consumer harm caused by this particular brand of misinformation.” 

Consumers should always be cautious about advice from sources that are not regulated or accountable, including information shared through online forums or generated by AI tools. Even where it is well intentioned, such information may be factually incorrect or misleading. There are numerous FCA-authorised debt advice providers that are not only equipped to support consumers in financial difficulty but are also accountable to the regulator should things go wrong – many of them are listed on the CSA website here.