Leeds collections firm to write off £414m of customer debt over ‘historic failings’

[Legal Beagles]

Debt purchase and collections company Motormile Finance UK has agreed to provide redress to more than 500,000 customers by writing off £414 million of debt and making repayments of £154,000 for historic failings in its due diligence and collections process. The repayment is part of an agreement with the Financial…
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[R0b]

Re: Leeds collections firm to write off £414m of customer debt over ‘historic failing

The FCA says the Leeds-based firm “failed to conduct sufficient due diligence upon the purchase of a debt portfolio to be satisfied that the sums due under customer loan agreements were correct”. This led to “unfair and unsuitable” outcomes for its customers.

Doesn't the above seem to resonate across the whole of the debt purchasing industry, as can be seen by the very lack of pleadings that we see on this forum.

[nemesis45]

Re: Leeds collections firm to write off £414m of customer debt over ‘historic failing

I think you are right [MENTION=71570]R0b[/MENTION],

Most if not all of the players in the debt purchase " industry" are guilty of failures of " due diligence" I think.

As for MMF at one point it used collection agency Transcom International to manage it's portfolio and the response to every request was to state.

" We can confirm that you debt is not statute barred under the provisions of LA 1980" when SB was not even mentioned, still got some of those on file.

Gained many " victories" and redress for their incompetence.

In another place a few years back I collated and submitted a mass complaint to the OFT which resulted to restrictions being placed on MMF.

nem

[R0b]

Re: Leeds collections firm to write off £414m of customer debt over ‘historic failing

Well it seems like a start but from the sound of things, the whole debt purchasing industry needs a bit of a revamp. It's a start from the FCA but perhaps more complaints like this should be submitted where possible to the FCA to investigate further. Hence my suggestion that claims for malicious prosecution / tort of abuse of process could be used as a counterclaim (still requires a discussion) which then at least requires the Claimants to back peddle somewhat as they know that they don't generally carry out any due diligence and instead rely on what could be construed as outdated information by the time they get round to that particular debt, especially if a lengthy period of time has elapsed since purchase.

Hopefully the FCA may look at further action against other debt purchasers some time.

[nemesis45]

Re: Leeds collections firm to write off £414m of customer debt over ‘historic failing

Well it seems like a start but from the sound of things, the whole debt purchasing industry needs a bit of a revamp. It's a start from the FCA but perhaps more complaints like this should be submitted where possible to the FCA to investigate further. Hence my suggestion that claims for malicious prosecution / tort of abuse of process could be used as a counterclaim (still requires a discussion) which then at least requires the Claimants to back peddle somewhat as they know that they don't generally carry out any due diligence and instead rely on what could be construed as outdated information by the time they get round to that particular debt, especially if a lengthy period of time has elapsed since purchase.

Hopefully the FCA may look at further action against other debt purchasers some time.

I have always held than any breach/abuse of process, and the conduct of the debt purchasers should be sent to the regulator for information, it's
that kind of approach which has got MMF into this situation.

nem

[R0b]

Re: Leeds collections firm to write off £414m of customer debt over ‘historic failing

Of course but that is not the only way they can be held accountable. By deliberately issuing such proceedings without carrying out any due diligence and not having a reasonable belief that the sums are owed then that entitles the Defendants to a financial remedy, albeit not a large sum but lets say £200 on average per claim, that might start to make them think twice about issuing claims with nothing to back it up with. This of course takes into account the distress and inconvenience it may have on people with their aggressive tactics and ignorance for the law at times.

In addition to the above, they can still report to the FCA but whether they take action of course is a different matter and could be years.