The BBC reports that Britain’s Office of Fair Trading is cracking down on debt collectors who are tracking down consumers on Facebook and Twitter. The OFT has updated its guidelines for debt collectors, banks, and law firms engaged in debt collection. According to the OFT’s press release, the guidance “sets out specific business practices that the OFT considers to be unfair or improper, such as using Facebook and Twitter and other social networking sites to contact debtors, as well as contacting debtors at unreasonable times, or at inappropriate locations, for example when they are a patient in hospital.” The country’s Financial Ombudsman Service noted that consumer complaints about unethical debt collectors increased 59% from April to September 2011.
Citibank, Debt Collection, and Alleged Murder
Towards the end of March, an Indonesian man tried to dispute his Citibank credit card debt. By the end of the day, he was dead. The Jakarta Globe reports that Bank Indonesia, the country’s central bank, has found Citibank guilty of inappropriately hiring a third-party debt collector. Moreover, a central bank spokesperson indicated that Citibank must change its debt collection practices or face revocation of its license to issue credit.
In a related story, the Globe reported that an official autopsy performed on Irzen Octa found that he had died of a stroke. The results from a second autopsy have not been released, but preliminary reports mention extensive bruising and broken teeth, consistent with physical violence. Bloomberg reports that Mr. Octa’s widow is suing Citigroup for $347 million. Citibank spokesperson Richard Tesvich said, “…Our internal investigation has found no indication that Mr. Octa was physically harmed at our offices.”
Sergei Lemberg
