In the current climate a rising number of borrowers with credit card debts are struggling to make repayments on the debt due to their financial circumstances, and there is one company that has been operating by buying the debts off the consumer and then getting out of paying it to the lender by making legal challenges.
The company is called Credit Card Killer, and is operated by a couple named Basil and Amanda Rankine.
However, the practices of the couple have been slated by a tribunal, which claims that the firm could potentially cause serious problems for borrowers in debt.
Momentum Ltd is the parent company of Credit Card Killer, and despite having had its authority to operate in the claims industry removed by the Ministry of Justice earlier this year continues to operate. The Rankines claims that they are not working in the claims industry but are operating in the unregulated debt industry.
The presiding judge at the tribunal stated that the company had ‘the potential to cause serious harm to a large number of consumers’. He added that whilst consumers may have parted with hundreds of pounds to get Credit Card Killer involved they could still be chased by lenders and could face fines and court costs.
The Rankines are said to have bought around £3 million of debt between them between February and April, and this has netted them around £300,000 in fees.
The Ministry of Justice stated: ‘Any business that is providing regulated claims management services without authorisation or exemption is committing a criminal offence under the Compensation Act 2006. The claims management regulator takes such offences very seriously and where there is clear evidence of unauthorised trading within the scope of the Act will seek to exercise its powers to take injunctive action and bring prosecutions.’
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Tags: Card, Credit Card
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