Monday night’s ‘Dispatches’ programme on Channel 4 focused on Marlin Financial Services and the way they handle the recovery of debts which they have purchased from banks and other high street businesses. This is a multi-million pound industry with many such firms involved in recovering debts from the public. Their activities are controlled by the Office of Fair Trading and there are strict rules governing the way debt recovery agencies work.
With the aid of an undercover reporter Monday night’s programme revealed how Marlin operate and it was clear that some of the tactics employed by some of their staff were in breach of these rules. These involved the clever management and manipulation of telephone conversations which misled, pressurised and sometimes threatened vulnerable debtors.
The programme showed that Marlin do have a training programme and rules as to how debtors should be handled but as staff are paid on results there is pressure on them to stretch these rules in order to get results.
In their defence Marlin said that that they were a responsible company with a good record of compliance. However they recognised that retraining was necessary in some areas.
Last year the OFT carried out an investigation into aspects of the debt recovery industry whilst it uncovered evidence of wrongdoings amongst a number of firms it did not take any punitive action.
On the whole I though it was a very well put together documentary but I felt that the last part of the programme covering bankruptcy gave the false impression that bankruptcy was the last resort and that you are left with no money to live on: for some however it is the only and right option
If Marlin’s activities are typical of those of other debt recovery agents then there is clearly much more for the OFT to do and I intend to write to Channel 4 asking if they are going to report their findings to the OFT. If they are not then I will.
There was evidence in the programme that this firm was preying on the vulnerable and gullible, those who do not know their rights and who are intimidated and frightened by misleading statements threatening legal action when there is no intention to do so.
Some of you will question whether Mark (employee) should be allowed to work within the debt collection industry and whether MFS are fit to hold a consumer credit licence.
Those consumers who feel they have been subjected to harassment and unfair recovery tactics should contact the Office of Fair Trading or Consumer Direct telephone number 08454 04 05 06 or their local trading standards office.
To help you we have the Office of Fair Trading (OFT) guidelines on debt collection that debt collection firms must adhere to, they can be found here
Remember, being in debt is not a crime, so insist that you are treated properly and politely at all times.
