Motormile to write-off 500,000 customers' debt

Firm to write-off £414m of debt

Tom Ellis
clock • 1 min read

Motormile Finance UK, a debt purchase and collections firm, is to write-off the debt of more than 500,000 customers for failures in its due-diligence and collections processes.

According to the Financial Conduct Authority (FCA) Motormile had "inadequate systems and controls over due-diligence". As a result, said the regulator, the firm would write-off £414m of debt where it has been "unable to evidence the outstanding debt balance is correct and properly due". After agreeing terms with the regulator, Motormile's redress will also consist of £154,000 in cash payments to approximately 2,000 of its customers. "We have agreed this package, and previous action, to protect the customers of Motormile from unfair practices," said FCA director of supervision - retail...

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