A debt management company, Parkgate UK Ltd., has had its licence revoked by the Office of Fair Trading after it sent a threatening letter to a debt collection agency.
Parkgate, representing a client who was in debt, warned the agency not to attempt to collect money from their client, threatening physical violence if they continued to do so.
As well as sending the threatening letter, Parkgate also failed to adhere to practices that a consumer credit business should, according to the OFT's guidelines.
David Fisher, of the OFT, said: "Threatening behaviour is unacceptable. The letter Parkgate sent was inappropriate and called into question the company's fitness to hold a licence.
"We will not tolerate behaviour of this kind as it is a clear breach of the standards we expect from licensed businesses. We have therefore taken the decision to revoke its licence."
Parkgate apologised for the letter and claimed it had no intention of acting on the threats.
But as the company did not appeal the OFT's decision to revoke their licence within the set time limit, Parkgate lost its licence.
The OFT released revised debt management guidelines last month.
Related links:
Read more on this story (MortgageStrategy.co.uk)
Read 'I'm owed money, how do I get it back?' (FindLaw)
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