OFT removes licence of debt firm after threatening behaviour
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The Office of Fair Trading has revoked the licence of debt management company, Parkgate UK Limited, after it sent a threatening letter to a debt collection agency.
The letter, sent on behalf of one of Parkgate’s clients, included a threat of physical violence against the agent should they attempt to collect the client’s debts.
Parkgate apologised for its conduct and said that it did not intend to act on the threat, but the OFT has nonetheless concluded that the letter, combined with other failings to demonstrate the skills and knowledge required to run a consumer credit business, meant Parkgate was unfit to hold a licence.
As a result, the licence was revoked.
David Fisher, director of consumer credit of OFT, says: “Threatening behaviour is unacceptable. The letter Parkgate sent was inappropriate and called into question the company’s fitness to hold a licence. We will not tolerate behaviour of this kind as it is a clear breach of the standards we expect from licensed businesses. We have therefore taken the decision to revoke its licence.”
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Readers' comments (1)
John West | 5 Jul 2011 4:06 pm
The OFT were totally right in taking away the licence for improper behaviour. It is however a pity that the OFT are not sufficiently even handed as there are many debt collection agencies who threaten clients with actions which are inappropriate or illegal. Illegal in the sense that what is threatened is not possible but the threat is designed to frighten the vunerable and those unaware of their rights. It does seem ironic that a complaint from a collection company triggered the withdrawal of the licence, when numerous complaints to the OFT in respect of collection companies remain ignored. There are many forms of threat, physical and mental, and collection companies are masters at the latter. Banks and their collection agencies continue to hold the regulators in their palm and travesties are allowed which would shame a banana republic
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