....insurers and utility firms

Thousands of customers at Britain’s biggest High Street names are being hounded by debt collectors — even though they do not owe a penny. A Money Mail investigation has found that banks, insurers, phone and utility firms are routinely sending threatening letters warning customers their homes will be raided by bailiffs and property sold at auction if they do not stump up cash in days. Many are the victims of mistaken identity, often do not owe anything and have never been in debt.

But when they try to protest, they hit a brick wall. Often they end up being passed between the debt collectors and the company that they allegedly ran up the bill with. In a number of cases, exasperated consumers simply handed over the cash because they were so worried bailiffs would turn up at their home. Complaints about debt collectors have doubled over the past six months to 1,020 according to the Financial Ombudsman Service.

It is understood the new financial watchdog, which comes into force next year, is keen to crack down on rogue firms....More on this story: Menace of bully-boy debt collectors who hound the innocent