Best Financial Markets Analysis Article Channel 4 Dispatches programme " Undercover Debt Collector" earlier this week (available on 4oD) showed clear and repeat systemic breaches of the office of fair trading act in misleading and harassment of debtors by Marlin Financial Services.

Reporter Tom Randall went under cover as a job as a debt collector inside Marlin Financial Services as in recession hit Britain some of the biggest high-street businesses are cutting their losses and selling on their bad debts to agencies Agencies who buy up these debts are entitled to pursue debtors for the full amount.

Marlin Financial Services is debt recovery agency that buys difficult to recovery debts from the banks and credit companies at usually less than 10p in the pound. Why didn't the lender offer the debtor this option?

What is worrisome this is just one of several thousand such firms that are chasing more than £20 billion of debt.

If you are on the receiving end of these types of firms, then here's some guidance:

1. Again, the debt is owned by the debt agency, therefore you will be forced to deal with them rather than your originating lender.

2. Do not believe anything the agency says over the phone, ask for written evidence, refuse to deal with them over the phone, as it will likely upset you. Know this that they can repeatedly call you several times a day, therefore it could be useful to use BT's call blocking services.

3. Take any written correspondence to the Citizen Advice Bureau (http://www.citizensadvice.org.uk/) or better the contact the National Debt Help line (www.nationaldebtline.co.uk).

4. Statute Barred Debt - Note old debt that has not been pursued for at least 6 years cannot be later pursued, and any such attempt is harassment. It is important NOT to make any payment on debt that falls under this category.

5. Deceptive Practices - Beware that the debt recovery agencies deploy deceptive practices, including pretending to be solicitors, or alluding to actions that they cannot undertake i.e. to bankrupt you if you do not pay within 28 days etc. DO NOT BELIEVE ANYTHING THEY SAY OVER THE PHONE, ASK FOR WRITTEN CORRESPONDANCE>

5. If the company harasses you complain to the Office of Fair Trading, as repeat offenders could be fined or even have their licence taken away.

6. Credit Card Companies Reissuing cancelled cards - For some reason credit card companies can reissue cards even after the balance has been cleared and the account closed. This can become a problem if you move house and the new owner uses the card fraudulently, and therefore make you liable for a debt you do not owe. When closing accounts, request a letter in writing from your credit card company that the account has been closed and keep this in a safe place for future reference.

By Nadeem Walayat
http://www.marketoracle.co.uk

Nadeem Walayat has over 20 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis specialises on the housing market and interest rates. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 250 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

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