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Debt recovery firm loses business after OFT warning
Wednesday 15th April 2009It has emerged that 1st Credit, the debt recovery agency that was warned by the OFT in February about its intimidating debt collection techniques, has been dropped by two of its major clients: HBOS and Citi Financial.
Following numerous complaints from debt charities and an investigation by the OFT, 1st Credit was ordered to stop making empty threats of bankruptcy to debtors in order to recover cash.
HBOS – now part of Lloyds Banking Group – stated that it had stopped selling on its debts to the agency, whilst Lloyds said that although it continued to work with them; the relationship was under constant review.
Citi Financial – the retail loan and credit card business of Citigroup – ended its two-year relationship with the company earlier this year.
1st Credit is one of the
The firm has been made to report to the OFT every six months with information about the number of enforcement actions it has taken against struggling borrowers. If it fails to comply, 1st Credit could have its consumer credit licence taken away and land a fine of up to £50,000.
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