Debt Management Firm Loses Licence For Threatening Behaviour

Thu, 07 Jul 2011

Debt management company Parkgate UK Limited has had its licence revoked by the Office of Fair Trading (OFT) after sending a threatening letter to a debt collection agency.

The OFT revealed that the letter, sent on behalf of one of Parkgate's clients, included a threat of physical violence should the agency attempt to collect the client's debts .

Parkgate apologised for its conduct and said that it did not intend to act on the threat. Despite this, the OFT 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.

"Threatening behaviour is unacceptable," said David Fisher, OFT Director of Consumer Credit. "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."

Kevin Still, Director at Atlantic Financial Management, commented: "We welcome the on-going actions taken by the OFT during the consultation period on the updated Debt Management and Debt Collection guidance notes."

"It is important to establish professional standards between debt advisers / debt managers and the creditors and their collection agents."

He added: "As a Debt Managers Standards Association (DEMSA) member we are subject to a Code of Conduct and it is important that commercial debt solution providers conduct themselves in a highly professional manner."
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