Shocking debt recovery tactics uncovered by investigation
An investigation by The Sunday Times newspaper has discovered that staff in the debt recovery department of Lloyds Banking Group regularly intimidated customers who had missed loan payments. Some staff even referred to the practice as "putting the frighteners" on people.A reporter worked undercover at a Lloyds debt recovery office in Hove, East Sussex and found that workers would threaten customers over the phone, and pressurise them into making large monthly repayments that they might not be able to afford.
Low paid workers can earn bonuses of up to £750 a quarter by meeting performance targets, which are related to the amount of money retrieved and the number of calls made in an hour.
Therefore, staff are given incentives to make quick, high pressure calls and persuade the debtor to make the largest repayment possible.
Even more worryingly, Lloyds staff would refuse to work with debt organisations, when the Banking Code states that banks must "liaise with organisations that are giving the customer advice/support."
The reporter has told of some customers being reduced to tears as calls became more aggressive. A key line used by staff telling customers that they faced being blacklisted was: "You wouldn’t even get a Blockbuster video card, it’s that serious."
Lloyds Banking Group has since defended its debt collection department, saying it complies with the Banking Code, but debt advice groups like Citizens Advice Bureau and National Debtline have said that these intimidating tactics are a widespread problem throughout the industry and more needs to be done to curb them.
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