Debt Collectors Facing Clampdown

We have already discussed this blog Debtsolver, issues relating to the mis-selling of insurance reimbursement of the debt, which is currently under investigation by the Office of Fair Trading (OFT). Another scandal faced by the UK, involves the murky practices surrounding the behaviour of some debt collectors collectors.
Independent are sometimes hired by the creditors, in order to recover late payments from customers. From personal debt in the UK exceeded 1 trillion pounds mark, the focus was increasingly on the issues faced by individuals in debt, and the many businesses and services that have emerged to deal with them. The license number of credit has doubled in the past two years,
A recent survey of consumers in the UK surveillance, the OFT examined the working practices of licensed debt collectors, acting on behalf of creditors to engage in loan repayments. After a series of increases in interest rates and a lull in the real estate market, more and more people find themselves unable to keep pace with your credit card, loan or mortgage repayments, and are having to make face the uncomfortable possibility of being visited by a debt collector. If these visits were not distressing enough, the OFT has claimed that some debt collectors overloaded debtors / clients, misinforming them as to their rights, and that some were even threatening clients.
The OFT has published guidelines and best practices advice to the bailiffs, and in 2003 reviewed the way in which these are met. Unfortunately, they found evidence that in some cases these are not met, and, in fact, nearly 80 warning letters have been written, and 12 licenses have been refused or revoked since July 2003.
The OFT has carried out A review of the practices by debt collectors, and has said it will publish its report in spring 2006. launa lopez



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