There have been a number of high profile reports of businesses sending misleading debt recovery letters, which suggest they have been sent by a firm of solicitors, when they haven’t.
Ofgem has criticised a number of utility companies which have fallen into the same trap of using “alternative branding” when sending debt recovery letters. The alternative branding is misleading and suggests the letters are being sent from an independent firm of solicitors or debt recovery agency.
The bad publicity and regulator pressure is forcing changes. Ofgem has stated “while this practice was once widespread, the vast majority are no longer using alternative branding, with some having changed their practice recently”.
Wonga has been made to pay compensation by the FCA for similar conduct.
The Law Society has taken no action.
