The Office of Fair Trading has recently revoked the licences of four misleading debt companies. These companies were found to be sending misleading letters to people in an IVA and suggested that bankruptcy might be a better solution.
This action follows the OFT warning 12 for-profit debt management companies about their misleading mailings back in june 2008.
Debt Support Trust has been making consumers aware of the dangers of using for-profit companies. While some for-profit debt companies can be good there is a higher risk of them being dishonest. To stay safe here is what to look for before preceding with debt advice from any organisation;
- Consumer Credit Licence – This should be on every genuine companies website but you can also search the register here
- If the organisation is promoting itself as a charity they should have a charity registration number on their website or can be searched here if English or Welsh here if it’s based in Northen Ireland or here if based in Scotland
- Check out how the organisation make their money – this should be on the website of the company to be fully transparent