UK Gov't Agency Revokes License of Collection Agency

A debt collection agency has had its consumer credit licence revoked by the Office of Fair Trading (OFT) for withholding money from its clients that it had collected on their behalf.

Action was taken against Waterfront Financial Ltd, following receipt of a number of complaints from clients who had not received payments that were due from Waterfront totalling more than £19,000. Complaints had also been received from clients who had not received payments from an associate company, now no longer trading, which totalled more than £14,000.

A senior employee of both these companies has also been convicted of offences involving dishonesty, theft and obtaining property by deception, for which he received a custodial sentence.

In considering fitness to hold a consumer credit licence, the OFT will take into account a number of factors including whether anyone connected with the business has any convictions for offences involving dishonesty, as well as evidence of any unfair business practices including practices which contravene relevant OFT guidance.

During the OFT investigation, Waterfront Financial made representations to the OFT but has not appealed the decision.

Alan Williams, Senior Director of Markets and Projects – Services at the OFT, said:

‘Debt collection companies have a responsibility to treat their clients fairly as well as debtors. Unacceptable behaviour of this kind will not be tolerated and we will take tough action against any businesses that engage in such practices.’