Loan companies using aggressive tactics to recover money

Written by renxue January 09, 2008 15:39

A recent report has highlighted how some lenders have been using aggressive tactics and below par methods in order to try and recover money owed by customers. The Consumer Credit Act was reviewed in order to try and stop this type of action from loan companies but according to some experts and customers these methods are still being used, causing untold stress for customers and resulting in a flood of complaints to the Financial Ombudsman Service,

One woman explained how she had been harassed for years by a company through which she and her husband had a loan. Their loan of £5,500 had rocketed to over £50,000 according to reports, and the couple was receiving regular phone calls of a threatening nature according to their allegations. After reviewing the couple's case on industry professional stated: 'We do still see lenders whose treatment of distressed customers falls well below par.'

She added: 'The revamped Consumer Credit Act should mean improvements in customer service standards, but it is taking time to filter through. In the meantime thousands of people are being intimidated and threatened by creditors.'

The victim of this case of alleged harassment stated: 'The stress and anxiety has been unbearable. I experienced a miscarriage which began during one particularly terrible phone call from Paragon in 1998. I had just been told we would lose the house - even though I knew the debt was unsecured. I don't think any company should be able to treat people like this, but I don't feel we have anywhere to turn.'

An official from the lender stated: 'In the Prossers' case, we feel there has been a problem of miscommunication on both sides. We wrote off a large part of the debt when it became clear they were unable to pay. But they have missed payments and not communicated with us, which means it has been difficult to resolve the matter.'

Tom Smith
26th October 2007