Watchdogs are clamping down on the bully-boy tactics of 13 debt-collection companies.
The Office of Fair Trading has written to the firms after being flooded with complaints.
Among the underhand methods they're accused of using are phoning debtors in the middle of the night and every hour.
Others complained of being chased for money they didn't owe.
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It's also claimed the firms refused to deal with third parties such as Citizens Advice bureaux to resolve disputes.
Complaints to the OFT soared last year and the fear is more families could find themselves falling foul of the fierce firms as the credit crunch tightens its grip.
Officials refused to name the 13 companies last night, blaming "legal reasons".
But it means banks, credit card companies, energy suppliers and others could still be passing business their way without knowing.
The firms have been given four weeks to respond.
If they don't, or fail to satisfy the OFT about changes, they could be fined up to £50,000 or lose their licence to do business.
The OFT's David Philpott said: "It is unacceptable for debt-collection businesses to engage in unfair practices and we will continue to take action where we find evidence of this."
Members of debt collectors' trade body the Credit Services Association have seen their workload soar from £15billion in 2006 to £16bn last year.
It stressed there is a big difference between people who can't pay and those who won't.
In a statement it said: "Our members are obliged to adhere to a strict code of practice, developed with the OFT, and it is clear within that code where the boundaries lie."
COMPLAINTS TO THE OFFICE OF FAIR TRADING ROCKETED LAST YEAR 38 PER CENT TO 6,824
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Showing posts with label Crackdown on the debt collection bullies. Show all posts
Showing posts with label Crackdown on the debt collection bullies. Show all posts
Friday, 11 April 2008
Posted by Debtsgone LTD at Friday, April 11, 2008 0 comments
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