Debt Management Companies threatened with closure by the OFT

1st October 2010

The Office of Fair Trading has threatened 129 debt management and debt advice companies that their consumer credit licences might be removed unless they improve their standards.

During 2010 the OFT has visited debt management companies to inspect their operations, it has reviewed their web-advertising, and has conducted a mystery shopping exercise by telephone.

Serious problems have been identified with a high number of these companies resulting in the drastic measures now being taken.

Particular criticism has been directed at misleading websites which fail to fully inform potential clients about the options they may be considering.

Criticism has also been directed at companies where frontline staff lack the knowledge and competency to properly advise callers.

These companies now have until December to make the necessary improvements or face closure.

Amy Jellings , spokesperson for Trust-Deed.co.uk, said;

“We are pleased to hear that action is being taken against those providing poor advice and misleading information. Our Trust Deed forum is sadly full of stories where individuals have suffered as a result of poor advice and misleading information on Protected Trust Deeds. Hopefully the industry will now make the improvements required and consumers can have confidence that authorised debt advice businesses are providing proper advice in the best interests of their clients”.

Trust-Deed.co.uk operates a forum where experts from three regulated Trust Deed companies are available to answer debt questions concerning all of the debt solutions available in Scotland. The site support and advice team is made up of four debt advisors all of whom are fully CertDR qualified. This professional qualification covers the provision of advice on all major solutions available to deal with debt in Scotland and throughout the UK.

For further Trust Deed or Protected Trust Deed information please visit our forum where we have a wealth of free advice from experienced industry experts.

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