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UK Banks Accused of Misleading Debt Collection Practices

Right on the heels of the Wonga scandal UK banks will face an investigation about sending letters which appear to be from independent lawyers or bailiffs coercing  them to pay off their debts.

Three of Britain’s biggest banks – Royal Bank of Scotland, Lloyds and HSBC – have regularly sent customers letters on paper headed with the names of law firms that were actually from the banks themselves.  Barclays has in the past sent letters under the name of a subsidiary when chasing debts from credit-card holders.

The fallout from these misleading practices will be harsh on the debt collection industry as legislators and regulators seek new measures to curb such practices.

Source: Financial Times

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