Customers complain about tactics used by banks
May 29, 2008
According to recent reports customers complaints relating to the tactics used by some banks when it comes to recovering money owed to them. The case of a couple that were pursued by Paragon for repayment of money was recently highlighted, and industry professionals state that unfortunately it is not an isolated case and there are a number of lenders that will resort to harassments and underhand tactics to try and recover money that is owed to them.
The couple complained after Paragon harassed them for years over a debt that had ballooned from just £5000 to over £50,000 due to lack of communication. Mrs Prosser stated: ‘The stress and anxiety has been unbearable. I experienced a miscarriage which began during one particularly terrible phone call from Paragon in 1998. I had just been told we would lose the house - even though I knew the debt was unsecured. I don’t think any company should be able to treat people like this, but I don’t feel we have anywhere to turn.’
A representative from the lender stated: ‘In the Prossers’ case, we feel there has been a problem of miscommunication on both sides. We wrote off a large part of the debt when it became clear they were unable to pay. But they have missed payments and not communicated with us, which means it has been difficult to resolve the matter.’
One industry professional stated that many people are suffering like this at the hands of lenders. She said: ‘We do still see lenders whose treatment of distressed customers falls well below par. ‘The revamped Consumer Credit Act should mean improvements in customer service standards, but it is taking time to filter through. In the meantime thousands of people are being intimidated and threatened by creditors.’
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