NEWS...
The Observer Report: an Open Letter
I was somewhat bewildered by your article (Private Equity firms own four major UK debt collectors) billed as an Observer 'investigation'. I was not aware that the ownership of the agencies mentioned was in any way a secret, or their parentage difficult to ascertain. The inference that it is somehow a 'mystery' and that the owners should be ashamed is ridiculous.
I am similarly concerned by the casual use of hyperbole that permeates the article, with little substantiation. Yes there have been difficulties, and yes the industry - including many of the companies you mention - is working hard with government, the regulatory bodies and the various advice groups to improve the lot of debtors, but the vilification of an entire industry brought about by the vagaries of a few does the sector a gross disservice.
The debt industry is being scrutinised, but it is not true that banks have just started to sell off their debt; debts have been sold for more than 15 years! Neither is it true that banks 'can't see the impact on their customers' and that agencies 'are getting tougher'. Nonsense. All buyers of debt are tightly regulated by the OFT and levels of compliance have greatly improved. Sellers undertake rigorous due diligence before any potential purchaser is added to the 'panel' and allowed to bid for their debt. Creditors have no more wish to put their reputations at risk after a sale than in a traditional commission-based scenario. The original creditor will always be responsible for the behaviour of the collecting agent or purchaser.
Leigh Berkley
Chairman - Debt Buyers and Sellers Group (DBSG)
