The Office of Fair Trading has taken action against Mackenzie Hall Ltd, a debt collection company, requiring it to improve its practices.

The OFT has used its powers under consumer credit legislation to impose 'requirements' on Mackenzie Hall after an investigation found that some of its business processes failed to meet satisfactory standards. As a result of these requirements, Mackenzie Hall must not: * pursue a debt where it has been notified in writing that there is reasonable cause to believe that the debt is in dispute, and * pursue a debt where it has been notified in writing that the debt is statute barred.

Failure to comply with a requirement could lead to a fine of up to £50,000 and/or possible revocation of Mackenzie Hall's consumer credit licence.

Following an application by the company to renew its existing consumer credit licence, the OFT carried out an in-depth investigation into Mackenzie Hall's business practices and procedures, including a visit to its offices. The investigation found that whilst the company's procedures were of a satisfactory standard, complaint evidence received by the OFT showed that some of these procedures were not always followed.

The OFT raised its concerns with Mackenzie Hall and confirmed that it would be looking to impose requirements to improve compliance. Mackenzie Hall acknowledged the problems and, as allowed under the Consumer Credit Act 1974, made a proposal to address the OFT's concerns.

Ray Watson, OFT Director for Consumer Credit, said:

'Persisting with debt collection activity when debts are in dispute can give rise to significant consumer detriment, particularly where vulnerable consumers are involved.'

'In this case Mackenzie Hall has co-operated fully with the OFT and has taken steps to ensure that the business follows correct procedures for handling disputed and statute barred debts.'

'We will continue to use our licensing powers to take action to protect consumers where debt collectors fail to ensure full compliance with our guidance.'

Source: www.oft.gov.uk