Debt Companies Warned Over Misleading Phone Calls

Tue, 26 May 2009

10 companies have been warned to stop making misleading and unsolicited calls by the Office of Fair Trading (OFT). The OFT warned the companies to stop advertising their services in this way after The Information Commissioner’s Office (ICO) received a large volume of complaints about the companies. The firms were threatened with formal action if they fail to stop. Of the 10 companies, six are debt management firms and four are cold calling companies.

The OFT’s Deputy Director of Consumer Credit, Nigel Cates, warned that some firms may have acted illegally by making the calls, misleading vulnerable borrowers struggling with debts emanating from large personal loans, credit card repayments or other forms of credit . Mr Cates added that the OFT are being particularly vigilant given the large number of vulnerable consumers as a result of the economic downturn.

Assistant Information Commissioner at the ICO, Mick Gorrill, warned that the companies mislead some people, telling them they were some of the ‘few chosen individuals’ who had been selected as part of a government scheme to help wipe out consumer debt . Others were allegedly passed on to a debt management business and told they were speaking to a non-profit debt advisor .
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