News that 500,000 Loans have been written off due to failings in collection proceedings should act as a warning to businesses who don\u2019t play by the rules on debt collection. <\/p>\n
The startling figure relates to car loans and pay day loans which were sold onto a debt recovery firm which didn\u2019t stick to the correct procedures in its attempts to recover money. The firm in question had to pay \u00a3154,000 in cash to 2,148 borrowers before writing off a further \u00a3414 million which it owed to 500,000 people according to reports. <\/p>\n
Lenders often hand over debts to debt collection companies when they are unable to recover debts themselves. Failings made by the company included failing to check the sums owing properly and unfair contracts.<\/p>\n
The pay day loans industry has been hit hard by new legislation which puts a cap on charges and this latest failing will only put further pressure on the industry following the high-profile case involving Wonga\u2019s collection practices. <\/p>\n
When it comes to debt collection, it is vital that procedures are followed to the letter to avoid any ambiguity which can be used as a defence and let debtors off the hook.<\/p>\n","protected":false},"excerpt":{"rendered":"
News that 500,000 Loans have been written off due to failings in collection proceedings should act as a warning to businesses who don\u2019t play by the rules on debt collection. The startling figure relates to car loans and pay day loans which were sold onto a debt recovery firm which didn\u2019t stick to the correct […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,32,22,23,19],"tags":[14,68,8,9,10,35,69],"class_list":["post-146","post","type-post","status-publish","format-standard","hentry","category-churchill-recovery","category-debtor","category-insolvency","category-small-businesses","category-uk-debt-levels","tag-ccj-difficulties","tag-churchill-recovery","tag-debt-collection","tag-debt-collection-procedures","tag-debt-collection-tips","tag-loans","tag-uk-debt-levels"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t