Here at Commercial Domestic Investigations we follow best practice debt collection guidance. We’ve blogged before about payday lender Wonga and the issues they’ve had not following best practice when it comes to recovering money owed, this week, we were interested to spot more news on the payday lending industry and problems with debt collection.

Credit Today reported that the Financial Conduct Authority (FCA) has found that every payday lender it reviewed suffered from “serious non-compliance” when it came to debt collection. This is bad news for the payday lending industry following on from the large fine Wonga landed itself with, after using debt collection letters from fake law firms.

12 months of regulation

The payday lending industry has only been regulated for the last 12 months by the FCA. In that time debt collection has come under the spotlight and the FCA has admitted to finding serious failures in this area. Customers in arrears have been treated unfairly according to an FCA report.

The FCA has highlighted the following failings by payday lenders’ debt collection practices:

  • Failure to recognise customers in financial difficulty
  • Failure to direct people to free debt advice
  • Inflexible repayment options.
  • Firms engaging in misleading practices to seek payment from customers in arrears
  • Systems failures resulting in incorrect balances, fees and charges erroneously added, and in some cases, duplicate payments being taken.

60 percent of the market

The FCA review covered 60 percent of the payday lending market.  The FCA admit that for a long time the payday lending market has been making headlines for the wrong reasons, at Commercial Domestic Investigations we’ve been keeping tabs on the bad news around the sector’s debt collection practice.

The real test will come with FCA authorisation, and the debt collection practices of these companies will have a huge impact on whether or not they gain authorisation from the FCA.

Best practice debt collection

At Commercial Domestic Investigations we pride ourselves on best practice debt collection, our trained agents are expert at identifying the difference between a ‘can’t pay’ and a ‘won’t pay’. When dealing with people with genuine financial difficulties we often signpost them to organisations offering free and impartial debt advice.

We follow all the rules and regulations set by the FCA regarding debt collection and enforcement, and we pride ourselves on the high level of training we offer to our staff and colleagues. There are rumours that many payday lenders may find themselves out of business because they didn’t collect debt correctly. If you’re in business and have outstanding money owed to your company, it’s best to contact experts like Commercial Domestic Investigations for advice on best practice debt collection.


Commercial & Domestic Investigations are regarded within the debt collection and credit control industry as one of the best credit management companies in the UK. Established in 1988 to support and service all sizes of companies in the field of Credit Management.

Primarily our clients use our automated Debt Collection Services, but over the last eighteen years clients requirements have changed dramatically, something Commercial & Domestic Investigations has addressed.

We now boast a national client base in excess of 30,000 companies. Commercial & Domestic Investigations has grown by listening to clients’ requirements and adapting our services to meet all companies’ needs from Sole Traders, SMES, Ltd and Plcs. Please contact us on 08444 159200 for more information.