2004 Credit Suit

"£6m black hole in its accounts"

"British debtors who paid money to Intrum Justitia, Europe's leading debt collection agency, could be in line to get money back, it emerged yesterday.
The group, which has been investigating a £6m black hole in its accounts, said it was setting aside another £8m against what it calls "unallocated payments" at its English subsidiary - money that was paid to it but not passed on to a creditor."

This is of interest to me because I'm still wondering where my Pacific Bell payment went. I know it was deposited into their BofA account and apparently either "misallocated" or "unallocted."

I really want to find out where my money went.

It is shocking to see that European accounting practices are just as poor as American corporations' accounting.

But then again, I shouldn't be surprised. Corporate fraud is a global problem.

Intrum debtors may get refunds

"....

News of the black hole came to light in July, prompting Intrum to launch an investigation which involved 100 people and cost just under £4m. Intrum said that, while part of the problem was high staff turnover, lack of management and poor accounting methods, it had also found evidence of "deliberate misstatement".

It said it had not identified who had been responsible. "We have not been able to establish who did what at what time."

But it said investigations would continue and it would "carefully consider what actions to take in the light of the advice it receives". "