FSCC has responded to a complaint regarding charges on credit payments in arrears that were calculated as a percentage of the sum to be recovered, rather than on the basis of the actual cost of recovery as it should have been. This complaint was made to the then FSA in relation to HFC Bank Limited prior to its acquisition by HSBC. The Commissioner decided that whilst FSA was not unreasonable to identify the Office of Fair Trading (OFT) to the complainant as the appropriate regulatory authority, it was incorrect to not refer the matter to OFT itself. OFT’s dissolution and absorption into FCA and FSA/FCA laxness in not making the required referral for a long time added to the problem. FCA eventually decided to take no action on this matter, which FSCC labelled debatable if not manifestly unreasonable. As a result of FSCC enquiries FCA has decided to review the decision. FSCC identified the complainant’s perseverance with the matter as being the reason for its eventual investigation and that FCA handled the complaint poorly. Moreover, the Commissioner said the handling of the complaint against OFT (now FCA) had serious failings, for which FCA should fully apologise. (Source: FSCC Responds to Arrears Charges Complaint)