MSE News: Is it just Wonga? Send us your debt demands from fake lawyers

rizla_king

http://www.legislation.gov.uk/ukpga/1974/47/section/21

[Deleted User]

Whiner wrote: »

Could this be the next PPI claim?

Nah! enough people moaned about the CMC co fee's but think nothing of agreeing to a PDL supposed alledged APR charge... it was really quite funny, these complainers would never do anything of their own butt

I'd like to see Keys Whitlock and their like investigated next.... who were an operation of 2 PDL co's who shared details so much it stinks
But hey it really isn't 'victimless' for anyone so I'd rather it left

Failure of the OFT always :mad:

dumpyboy

How do you stand with firms. That send out legal letters(real firms names) but have there own collections departments phone numbers and address you phone they tell you a pack of lies what they can do over playing there powers when they no more a sollicter then I am surely this should now be outlawed

fatbelly

I notice Blair, Oliver & Scott (Halifax Bank of Scotland) got a mention on moneybox yesterday.

Atidi

Here's one that should get the juices of multi-millionaire Dr Martin Lewis OBE flowing as it could be a double whammy hitting both of his latest vendettas in a single blow.

Collections Direct, part of nPower.

pt2537

I have recently obtained a Court Judgment before HHJ Charles Harris QC where he was less than impressed shall we say to learn that Hillesden Securities were sending letters from fictitious people. They simply didnt exsist, therefore there was no prospect ever of the client calling them to discuss the contents of their letter, furthermore, they could never enter into a chain of correspondence with the client, as the letters appeared to be sent by all different people acting under the fiction name

The judge was not a happy fella when he heard that in the Court

Mikeat60

It's not just fake lawyers. There are also dubious real lawyer's letters.

I've received letters from genuine lawyers - except the letters have come from and shown the address of the "creditor". I always look the law firm up through the Law Society's website - then write to their registered address. I assume that a letter sent to the law firm itself will undoubtedly cost more for them to deal with than one sent to a debt collecting company. Whatever the explanation, this technique usually stops them - I suspect the cost of pursuing me becomes greater than the cost of pursuing people who are easily duped so they give up with me!

"The why" doesn't really matter - it's just a useful technique that should be passed on!

catwoman73

They're talking about this on BBC Breakfast now. It's just reminded me that when I was in debt in 2002, I got loads of 'solicitor's letters' that I bet were nothing of the sort.

I remember that Northern Rock were particularly quick off the mark - but in reality, I would confidently guess that all financial instititions have been doing this routinely, for ever.

When we moved into our current house in 2006 and NPower made a mess of our billing they were sending fake court summons, legal letters and all sorts.

It would appear that honesty and integrity within the financial sector is in very short supply.

Hanky_Panky

I still don't see what all the fuss is about.

For whatever reason people fall behind on payments and get chased to pay up. All collection activity always starts with the lender - people have the opportunity to negotiate with the lender, come to an arrangement etc. A relatively small number of cases don't respond (head in the sand) or can't pay in which case the actions are escalated by sending out to a third party many of which are deliberately designed to look like they come from something more 'official' than they actually are. This practise has been going on for years and years and the OFT were well aware of it. I have even passed some of these 'letters' to them to confirm they are acceptable.

Just think this is another crusade that many will latch onto to try and gain some advantage. The reality is that it could have been avoided in the first place.

fermi

http://news.sky.com/story/1295002/watchdogs-pursue-debt-letter-tactics

FCA want to see copies of letters.

Regulators for the City and solicitors confirm they are examining a widespread tactic to pursue debts owed to banks and utilities.

11:17am UK, Friday 04 July 2014

The FCA wants people to send it unclear debt agency letters

The City watchdog has urged people to send it copies of letters from debt recovery companies purporting to be working on behalf of high street names.

The Financial Conduct Authority's request comes amid reports that some banks and utility companies have sent 'bullying letters' to those in arrears over payments.

The letters may appear to be written by outside debt agencies, with only a passing mention of an in-house connection between debt collector and creditor.

The City regulator told Sky News: "The FCA is unable to comment on the activities of individual firms, but we are aware of these reports.

"We would request that anybody who has further information about this type of practice passes it onto the FCA."

The Solicitors' Regulation Authority (SRA) said it was investigating a number of complaints that have given it "cause for concern".

SRA executive director Richard Collins said: "We will shortly be issuing guidance for in-house solicitors on our existing requirement that publicity must not be misleading.

"This will make it clear that they cannot use forms of words that give the impression that they are an independent law firm and not employed solicitors."

Lloyds Banking Group confirmed that it owned a Scottish-based subsidiary, Blair Oliver & Scott Ltd (BOS), which was used for sending out letters.

The bank insists BOS, which operated from 1991 to 2013, did not undertake legal recoveries - only debt collection.

It told Sky News: "Blair, Oliver & Scott Ltd ... functioned as a debt collection company collecting debts owed to companies within what is now Lloyds Banking Group (previously HBOS plc and Bank of Scotland groups) in relation to a range of accounts including Bank of Scotland and Halifax overdrafts, loans and credit cards.
"It also acted as a debt collection agent for companies outside the Group such as utilities companies."

RBS previously used independently regulated in-house law firm Green & Co, along with Triton Credit Services.

An RBS spokesperson said: "Our customers should never be in any doubt about who they are communicating with.

"We have reviewed our policies in this area and will stop the use of any solicitor or debt collection brand names in correspondence with our customers that could cause confusion."

A Barclays spokesperson said its in-house firm was being wound down and told Sky News: "All debt collections are now carried out under the Barclaycard name, following a decision we took in April this year to end the use of separate companies.

"Mercers Debt Collections Ltd previously managed some collections work on behalf of Barclaycard but it was made clear to customers that they were a company within the Barclays Group and collecting on our behalf."

The Student Loan Company (SLC) was recently revealed to have used a similar tactic, since 2005, over university tuition fee arrears beyond three months.

On July 1, SLC said: "We (have) developed new letters which removed reference to the Student Loans Company as a 'client' and increased the font size of the footer which said 'Smith Lawson & Company is a trading name of the Student Loans Company Limited.'"

The revelation of apparent widespread use of the third party letters comes after payday loan firm Wonga issued fake legal letters to 45,000 customers.

The FCA made Wonga pay more than £2m in compensation for the practice carried out over a number of years, including charging some borrowers administration fees.

The Law Society said Wonga's action may have amounted to blackmail. Shortly afterwards, City of London police said it would reopen its 2013 examination into Wonga's activities.