In future, debt collectors will be unable to arbitrarily ignore third parties, such as Citizens Advice Bureau, appointed by the debtor.

In addition, they will have to fully investigate if a debtor claims that there is no money owed.

The OFT guidelines will make it easier for Trading Standards officers to pursue errant debt collectors, in some instances firms could end-up losing their consumer credit licences.

Firms are likely to face action from Trading Standards if they break any of the following guidelines:

• Falsely claim that they are acting with the authority of the court
• Pursue third parties for debt that they are not liable for
• Contact debtors at unreasonable times
• Fail to deal with appointed third parties
• Do not investigate if a debtor claims that there is no money owed

The OFT guidelines make it clear that lenders must not ignore the pressure tactics used by debt collectors that they appoint.

It added that lenders should take action against errant debt collectors, and that failure to do so would "call their own fitness to hold a licence into question".

In response debt collection industry bodies have broadly welcomed the OFT move.

"This positive move should help to raise standards within the debt collection industry and offer a greater level of protection for the consumer," Scott Soutar, Credit Services Association said.