UK Debt Management Firm Has License Revoked for Threatening Debt Collector

A debt settlement firm in the UK had its license revoked recently by the Office of Fair Trading (OFT) after it sent hostile correspondence to a debt collection agency.

The OFT – the UK’s economic regulator — said that Parkgate UK was unfit to hold a license as a result of the letter, which included a threat of physical violence against a debt collector if they continued to attempt to recover the debt from Parkgate’s client.

The letter, along with other questions regarding the company’s capability to manage a consumer credit business, led to the OFT taking action.

OFT director of consumer credit David Fisher said in a statement: “The letter called into question the company’s fitness to hold a license. We will not tolerate behavior of this kind as it is a clear breach of the standards we expect.”