A WOMAN in Newport has been left more than £200 out of pocket due to a debt collection "racket".
A £75 enforcement fee soon became £265 simply because officers insisted on conducting a visit to her home, it has been claimed.
The woman is among the alleged victims of "unfair charges that are applied to many people struggling to pay off a debt", according to a member of the Senedd, who said the practice "has to stop".
The woman, who lives in social housing in the city and received government benefits, was facing legal proceedings against a utilities creditor.
MS Peredur Owen Griffiths said the woman "asked the debt collection company if she could arrange an instalment plan, but the company insisted on a visit to see if she had any assets".
He added: "This meant that, in addition to the £75 charge that was added to her debt because of the telephone stage of enforcement, £190 was added to her debt for the visit.
"Had she not been at home on the first visit, a second visit would have led to the stage-two High Court enforcement fee of £195 being added on.
"The system adopted by some debt collection companies appears to be nothing more than a racket that prays upon the most vulnerable in our communities. It has to stop."
Mr Griffiths has called on the Welsh Government to "issue guidance to the public sector and utility companies, so that they only work with debt collection companies who work in tandem with the enforcement conduct board".
He said ministers have to "explore any ways of curtailing the rogue operators in this sector in order to protect our citizens".
Senedd trefnydd (house leader) Lesley Griffiths said the government's minister for social justice would meet with enforcement companies next week to discuss the matter.
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