Don’t think that scams that prey upon people with debt problems is limited to just the United States.
Just recently the High Court in London shuttered a fraudulent debt buyer operation. Readers familiar with some of the debt buyer claims will notice they sound suspiciously familiar to the debt buyer claims in the U.S.
Buy My Debt Limited and The Trusted partnership operated in concert and claimed they could buy consumers’ debt from creditors and then settle the debt.
The claim was the debt could be purchased for 10% of the balance plus a fee of £250. Consumers believed them and paid.
The High Court heard arguments The Trusted Partnership received about £74,000 in fees from consumers and that’s where it stopped.
The UK Insolvency Service uncovered that The Trusted Partnership had no agreements or negotiations with lenders
Insolvency Service investigation supervisor Colin Cronin said: “In making the decision to wind-up these companies the High Court is sending a clear message that schemes which seek to deceive customers are not acceptable. The Insolvency Service regards this as serious misconduct and will take appropriate action against company directors who operate in this way.”
The firms were run from Sheffield by Philip Allingan, 42, and Roy Hayes, 49.
I think you’ll find the claims made are very similar to the Debt Restructuring approach that was becoming big in the U.S. market in July of 2011. You can read Consumer Debt Restructuring 101: What It is and Why You Should Avoid It for a description of what was foul smelling about the model.

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