The Ministry of Justice has announced it is to crack down on misleading adverts by claims management firms. The adverts purport that the companies are able to write off people’s loan or credit card debts . However, with the Citizens Advice charity alleging that there has been a number of bogus adverts recently, the Ministry of Justice has said that any firms found guilty of making misleading claims to entice customers could be closed down.
The adverts claim that many loan agreements are ‘unenforceable’, though these claims have been said to be dubious by the Citizens Advice charity. In particular, claims that any credit card or personal loan agreements made before April 2007, and worth less than £25,000, may not be enforceable if the credit company doesn’t have sufficiently accurate paperwork.
Ray Watson of Office of Fair Trading warned, ‘The OFT will not hesitate to take enforcement action against licensed claims management businesses who engage in unfair business practices by deliberately misleading vulnerable consumers about the services they offer.’
Sue Edwards of Citizens Advice said, ‘These ads appear to offer an easy way out to people who have credit debts they are struggling to pay. But many credit agreements do meet the legal requirements and therefore can't easily be challenged as unenforceable.’
Ministry of Justice to Clamp Down on Bogus Debt Adverts
Thu, 26 Mar 2009
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