5-July-14
Ministers and regulators are under increasing pressure to investigate how many of the largest companies in the UK are sent, it seems that an independent lawyer or bailiff to get their customers to pay off debt misleading letters.
Senior Conservative and Labour MPs called for the beginning of the investigation into the problem more and more evidence in Friday's financial regulators, companies in several sectors had resorted to a letter from a third party claiming practice law firms or collection agencies.
Three UK's largest banks - Royal Bank of Scotland, Lloyds and HSBC - have a regular piece of paper with the law firm; they are actually from the bank's own name led customers to send letters. Barclays chase in the past when the debt from the credit card holder, letter name of the subsidiary company.
Wonga revelation to one week after payday loans, was ordered to pay £ 2.6 million compensation after its law firm from sending forged letters, delinquent customers who led them to believe that their debt has been passed on to third parties.
Stella Creasy, Labor’s shadow business secretary, said:. ". Financial Conduct Authority is investigating the debt collection practices of today's revelations in the payday loan market, which should be extended to other areas."
Her concern is echoed bipartisan members of the Treasury Select Committee influential.
Labour member of the committee, said: "This approach seems to have been more widespread than we first thought we need a broader look at this approach to find what has been going on.."
Conservative MP Andrew Tyrie who chairs the committee, is writing some of the UK's largest high street banks, why they have warned that some borrowers, claiming to be a lawyer or a debt collector's interpretation of Independent Business.
Mr Tyrie said on Friday: "Customers should know who they are dealing with it seems they may not do.”
Charlie Elphicke, the Conservative minister's assistant, gave warning against the "disgraceful scare tactics," added:. "It is important to know how far this continues."
Lloyds, Barclays, HSBC and Royal Bank of Scotland said they had to comply with regulations, has not been accused of breaking the law. Barclays and HSBC said they now only send correspondence under their own brand, and Royal Bank of Scotland said it would do the same in the future.
Lloyd said earlier this year that it will "phase out" approach. But still sending letters printed name microcontroller lawyer. The bank plans to stop sending letters within the next few weeks.
Student loan companies also came under fire last week, had used a similar technique, from a company that seems to be an independent debt recovery group, but it are not a subsidiary of the Company in writing to the debtor. SLC recently stopped using the name Smith Lawson.
When water utilities and Anglo Scottish Power has been written, customer bad debts using the name subsidiaries. These companies say they have made it clear who has the time of writing involved in the enterprise.
Citizens Advice is now calling on the FCA inspection debt collection practices are clear, whether compensation should be paid to the customer.
Gillian Guy, the group's chief executive officer, said: "The people who are in debt are under tremendous financial pressure, need to know where to go for help, rather than the bogus companies exert undue pressure being harassed in a in some cases the charges to them.”
FCA said it was unable to comment on the activities of individual companies, but it is aware of the report. "We will ask anyone who has further information about such practices; it is passed to the restricted area, said:" a spokesperson.
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