How we tackle unfair terms
The cases we investigate come from a number of sources, including individual consumers and referrals from other 'qualifying bodies'.
We consider first whether the contract term appears to be unfair. If we do not think it is unfair, or we decide that action on our part is not justified, we will respond stating the reasons for our decision not to investigate and the case will be closed.
If we consider that the term is unfair we contact the firm letting it know our concerns and asking for its views. If, in light of these, we remain convinced of the unfairness we will ask the firm for an undertaking. If merited, and if no undertaking is given, we will take enforcement action through the courts. Similar action may follow if a firm breaches an undertaking it has given us.
Publication of undertakings
We expect to publish the undertakings on our website after they have been published by the OFT. We give firms the opportunity of seeing in advance the text we publish.
Thematic work
As part of our work in tackling unfair terms, we are looking at sectors where we have received a number of complaints. These include:
- Mortgage exit administration fees
- Payment protection insurance
- Mortgage Early Repayment Charges
- Statutory Rights
More information on unfair contract terms