If you are a business owner who has found yourself in hot water over your debt recovery practices, then spare a thought for JP Morgan. The giant U.S. bank will be forced to pay $166 million over the abusive way it treated customers over debts according to reports on Bloomberg.
The failure of JPMorgan to comply with debt collection laws in the United States is the latest in a string of other breaches of the rules by credit card companies. Back in 2012 American Express were accused of informing customers that if they were to pay off their old debts, then their credit scores would be improved. This cost them £112.5 million in fines. Recent action has also been taken against Bank of America for its marketing and marks a tough new stance on banks from United States regulators.
These big business fines may seem like a world away from SME businesses here in the UK, but what they do reveal is the need to take great care in the way payments are chased from debtors. Procedures must be followed to avoid breaking laws in the UK as well as the US. Making false claims and harassing customers over debt can actually hamper debt recovery efforts and it is better to be patient and use a professional debt recovery company who will know the correct procedures to recovery money quickly and efficiently.