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Tuesday, 27 August 2013

Abuse of winding up petition process by unregulated debt collection agencies

Ali Akram of LexLaw has written a good piece on his blog about using a winding up petition as a debt collection tactic being an abuse of process.

He points out that an unregulated debt collector used the winding up petition process to extract payments without really understanding enough about the procedure.

Examples of wrong doing include the following;

  • Not allowing enough time for the debtor to pay the amounts due
  • Not giving sufficient warning of legal action
  • Threatening to publicize the petition which is not in accordance with the regulations i.e. sending a copy to your bank.
  • Adding unreasonable costs to the application to put on further pressure.

Read the whole article here;

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