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Debt collection firm ordered to shut down

Alektum lost its license in 2018 and sold the business, but buyer Annomen was barred from the debt collectors' register.

The consumer watchdog had previously warned about shady practices by some firms. Image: Tiina Jutila / Yle

The southern Finland Regional Administrative Authority (AVI) has ordered the collections firm Annomen to shutter operations. The decision came after the authority rejected an appeal to a previous ruling to bar it from the register of debt recovery operators.

The Competition and Consumer Authority (KKV) had previously warned consumers about debt claims issued by Annomen and another collections firm, Alektum. At the time the authority had raised red flags over shady practices in the companies’ operations.

Alektum had its recovery license revoked at the end of 2018. The firm then sold its collection operations to Annomen, but the regional administrative authority did not approve its addition to the recovery register.

According to information from the Consumer Ombudsman, the companies have jointly issued thousands of debt collection claims throughout the country.