OFT revokes debt management company licence

The letter, sent on behalf of one of Parkgate's clients, included a threat of physical violence against the agent should they attempt to collect the client's debts.

Parkgate apologised for its conduct and said that it did not intend to act on the threat, but the OFT has nonetheless concluded that the letter, combined with other failings to demonstrate the skills and knowledge required to run a consumer credit business, meant Parkgate was unfit to hold a licence.

As a result, the licence was revoked.

David Fisher, OFT Director of Consumer Credit, 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.'