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Debt Collection News Roundup – July, 2016

Here at Access Credit Management we like to make sure we bring our readers interesting and relevant news about our industry so once a month we’ll be publishing a News Roundup. This should keep you up to speed with all the important goings on within the sector so that you have a resource that keeps you fully informed of all the latest news. It would be interesting to know what you, the readers, think of the stories that feature here. Please join in by adding your comments below the regular news roundup postings or email us if you come across anything that you think we should include.

Our first story concerns HM Revenue and Customs who paid out £1.9 million in compensation after making a company bankrupt with a tax demand that turned out to be wrong. HMRC were granted a provisional liquidation order against the company by the High Court and the company was subsequently wound up. However, the Duty and VAT assessments on which the action was based were later withdrawn by HMRC and the action found to be unjustified, resulting in the compensation payment. It’s also been revealed that HMRC wrote off £120 million last year after scaling back efforts to recover overpaid tax credits.

To add further embarrassment for HMRC, a Money Mail investigation discovered that the organisation is wrongly harassing tax payers after the tax office botched some of its calculations while scouring its books to claw back tax credits that were mistakenly paid out years ago, leaving tax payers feeling worried and vulnerable. The Driver and Vehicle Licensing Agency (DVLA) has recently published its annual report which reveals that revenue from vehicle excise duty has fallen by £93 million in the year since the need for a paper tax disc was scrapped. While the Department of Transport carried out a roadside survey which discovered that 1.5% of vehicles on the road were unlicensed, statisticians estimated that the loss to the exchequer would be around £80 million and the RAC insists that another roadside survey of vehicles is necessary to discover the true extent of tax evasion of this type. Meanwhile, across The Pond, consumers in the USA will have a greater ability to dispute their bills under proposals released last week to overhaul the multi-billion dollar debt collection industry. The new rules from the Consumer Financial Protection Bureau will require that collectors have sufficient documentation to prove a debt is owed and initiate a 30 day waiting period for loans tied to someone who has recently died, stopping all collection attempts from a spouse or child during that time.

It’s estimated that 70 million Americans are contacted by debt collectors annually and more of them submit complaints to state and federal agencies about unfair or deceptive practices than any other part of the consumer financial system. We’ll be back next month with another news roundup to keep our readers fully up to date with all the latest happenings in the debt collection industry both in the UK and worldwide.