Banks, building societies, finance houses, credit card companies, they all flog off the debts of customers to other companies who grandly call themselves Debt Collecting Agencies. The impression is that these agencies have clients and that they are recovering debts for these clients. 99% of the time that is utter hogwash. They buy the debts of others at about about 10 pence in the pound after the seller has rejigged their books, either by cashing in on an insurance policy or by passing the debt around internally. The so-called DCA then attempts to obtain the full whack outstanding for themselves. It's a massively profitable business with the banks ploughing money in so these guys can buy more debt.
If such luxuries as payment protection insurance was added to the original contract this is conveniently forgotten. So is any aspect as to how the debt arose. Disputes with the original lender are glossed over. The debtor is basically abused until money is obtained. It's a form of legalised blackmail. If the original lender thinks so highly of the debt that it is prepared to sell it so cheaply, why should the public think any higher of the lenders?
The government should crack down on these debt purchasing companies and really bite them where it hurts. But do I hope in vain? Possibly, because the government is flogging off debts as well, especially student debts. Debts are big business. If we want these people to wither on the vine, we need a proper system of debt collection. One that is properly regulated. Currently all we have is a racket run by posh and well-heeled spivs.