MP calls for investigation into banks debt collection practices

insolvency industry

Labour MP John Mann has lead calls to launch an investigation into the ‘menacing and misleading’ world of ‘in-house’ debt collection practices conducted by banks and blue chip companies.

The Daily Mail revealed in a newspaper story that banks such as HSBC, Barclays, Halifax and RBS are among organisations that have masqueraded as third party debt collectors and independent law firms so as to mislead customers in an attempt to get them to pay debts.

Labour MP John Mann, a member of the commons treasury committee stated that the police should be called upon to investigate these contemptible practices.

He is reported as saying “It is unacceptable for banks, utilities,  or anyone to pose as someone else in order to send menacing letters to their customers. It is completely misleading and obviously designed to intimidate people’ 

He also added that bank chiefs are also likely to face questioning over these fresh allegations which have long been viewed as standard practice within the banking industry.

Tory Andrew Tyrie, chairman of the Commons treasury committee has also said he will be writing to the banks demanding a formal explanation into their activities, saying “Customers should know who they are dealing with. It seems they may not have done”

The industry Watchdog is considering its own investigations and is expected to provide a new notice of guidance on the matter after a large number of complaints regarding debt collection activities.

Utilities companies are also expected to come under the microscope over the next few weeks.




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