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False debt collection 'is fraud'



Collecting alleged debts that in fact do not exist is an offence that should be punished, it has been noted.

Commenting on the issue, Councillor Lynn Riley from Cheshire West and Chester Council said such activity amounts to fraud and is illegal.

Her remarks were made in response to reports that a number of organisations have been receiving false invoices.

The goods listed in the bills had neither been ordered nor received.

However, the envelopes they were in contained a letter warning that debt recovery action would be taken if the invoice remained unpaid.

Councillor Riley stated: "Any business sending out invoices for goods which have not been ordered may be guilty of fraud."

Firms engaged in genuine debt recovery were recently given advice in Fresh Business Thinking by Alison Forsyth, who said sometimes it helps to establish a more formal dynamic with the customer by handing the task of getting money to someone else, such as the accounts department or a lawyer.
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