OFT cracks down on debt management companies
The Office of Fair Trading (OFT) has announced that, following an investigation, some 35 debt management companies have lost their Consumer Credit licenses.
In September 2010, OFT issued a warning to 129 such companies after uncovering issues with compliance.
Today (January 31st), 35 of these have surrendered their licenses while 79 are currently undergoing investigation and a further eight have been informed that their licenses are shortly to be revoked.
As part of the ongoing investigation, OFT intends to amend its guidelines to cover newly discovered unsuitable trends.
Commenting on the announcement, head of loans and debt at moneysupermarket.com Tim Moss comments: "The OFT's move to strip consumer credit licences from at least 50 debt management firms is fantastic news for the thousands of vulnerable consumers who find themselves in financial difficulties."
Adding that well-run debt management companies can be a useful solution for those with monetary problems, he reminds consumers that there are also charities which can help them.
Recent research by uSwitch.com showed that rising costs continue to affect cash-strapped Britons, with three-quarters of UK households rationing their energy use.
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