1st Credit statement

Panorama: Can't Pay, Won't Pay featured an interview with Leanne Blurton who had to deal with her stepfather's financial problems after he was admitted to a psychiatric hospital. Despite submitting proof of his mental illness and his section order, debt purchaser 1st Credit did not freeze his debts until Panorama got in touch. Company director Najib Nathoo made the following statement:

"Repayment of debts remains an emotive and sometimes distressing subject for debtors. 1st Credit acquired his debt in March 2008 and agreed an affordable repayment plan with him which included the freezing of interest rate payments."

"We were informed that he had been sectioned under the mental health act, some 8 months after the initial call and clearly we failed to apply our industry guidelines which would have meant that on receipt of documentary proof of his illness, his payments should have been suspended. We're very sorry that our actions have caused him and his daughter considerable distress. This is not the standard we expect and have set for our business. As a result of this failure in procedures, 1st Credit is re-training staff members concerned and issuing clearer guidelines to all staff regarding the handling of cases such as this."

"In the meantime, we have frozen his account and are now working with his daughter to resolve the matter. We wish him a speedy recovery."