Waterfront Financial recovered money from members of the public, who could well have been facing debt management troubles, but failed to pass these on to its client companies, the OFT has revealed.
On submission of several complaints regarding payments not received from the debt recovery firm, the OFT conducted an investigation and has subsequently seen fit to revoke the consumer credit licence of the Merseyside based business.
“Debt collection companies have a responsibility to treat their clients fairly as well as debtors,” said Alan Williams, senior director of markets and projects at the OFT.
“Unacceptable behaviour of this kind will not be tolerated and we will take tough action against any businesses that engage in such practices.”
Earlier this week Citizens Advice warned that proposed government legislation could increase the powers of debt collectors and make those people in credit card debt in the UK in a more vulnerable position.