Wednesday 24th of November 2010
News that a number of financial groups have started to issue charging orders for relatively small amounts owed to them is a concern, one expert has claimed.
Chris Jenkins, creative director at Manchester-base digital marketing agency Dallas Matthews, said lenders using the system to get back amounts as low as £600 is worrying.
They are a particular concern when it is taken into consideration that a large proportion of the money owed could be made up of debt collection agency fees, court costs and late payment charges, he noted.
"Lenders need to make an effort to try to judge each case on its own merit and take into account things like payment history and current situation," Mr Jenkins added.
Earlier this week, the Office of Fair Trading reported it had imposed requirements on a number of financial groups, including Alliance and Leicester Personal Finance and HFC Bank, to address concerns about how they enforce consumer debts.
By Hayley Jones
