Consumers still receiving threats from debt collectors
Debt collectors are still harassing consumers with threatening phone calls and poor service even though the newly revamped Consumer Credit Act was created to stop these incidences from occurring.
Rebecca Prosser is one of many who has suffered at the hands of aggressive debt collectors for eight years and continues to do so. During this period Rebecca has watched her £5,500 debt escalate to over £50,000 and has suffered severe harassment from the company for this sum. What started off as a small debt has now increased to a massive debt - the amount most people would start considering an IVA or bankruptcy.
Her husband took out the £5,500 unsecured loan way back in 1995. Jonathan made regular monthly payments until he encountered some problems with his salary not being paid directly into his bank account.
The bank responded to this discrepancy by placing severe charges on his account. However, John was not aware of these penalties as he was working abroad and did not have access to his mail. Months later, he was shocked to discover that his original debt had grown extensively. He rang the company several times but was subjected to abusive and threatening comments. The company refused to answer any of his letters and only responded when Jonathan agreed to pay £80 per month on a loan which had swelled to £50,000.
Though the Financial Ombudsman service is now in force, there is very little that can be done for the Prossers as their financial woes started way before April 6th 2007.
If you have debt problems, the Debt Advice Trust can give you free information and advise you on the best debt solution for you.
