Debt collection agency Fredrickson International will stop collecting debts owed to payday lenders due to concerns about the level of complaints and regulatory scrutiny the sector is generating.
The firm, part of Interlaken Group, said it will continue to service paying accounts for existing customers, but has closed its doors to any new business from payday lenders because of “grave concerns” it has about the market.
The decision will apply across all its businesses, which include Credit Account Management, a subsidiary which manages whole panels of collections agencies (DCAs), in a move that places pressure on competitor firms which collect for payday lenders.
Jan Michael-Lacey, sales and marketing director for Interlaken Group, told Credit Today: “We will no longer be working in the payday loans sector, as we have reservations over where the market is going.
“The Office of Fair Trading (OFT) is scrutinising the sector, and the volume of complaints being generated about this industry has given us grave concerns.”
Lacey added that the firm would wait for further announcements around the regulation of payday loans before it considered whether to take on payday loan clients in future.
Subscribe to Credit Today
