Debt management provider condemns misleading advice websites

Leading debt management company, EuroDebt, has criticised online businesses that are masquerading as non-profit debt advice organisations, saying they tarnish the image of reputable debt management firms.

This weekend the OFT revealed that it is in the process of closing down dozens of websites that are misleading debt ridden consumers over setting up repayment plans.

Thirteen companies, which run twenty seven websites, have used website addresses which are similar to charity organisations like Citizens Advice and the Consumer Credit Counselling Service when in fact they are commercial enterprises.

The OFT has written to the unnamed companies, demanding that they shut down the websites. If the firms don’t comply, they have been warned that they will lose their consumer credit license, and if they are not licensed in the first place, they will face prosecution.

Kevin Still, director of EuroDebt Financial Services said: “We have been pro-active in identifying the websites that are deliberately misleading consumers, as these adversely affect the reputation of the leading fee charging debt management companies that fully comply with the OFT Debt Management Guidance notes.”

Mr Still went on to say: “It is often the same companies behind these websites that breach trademark laws in the sponsored links at the top of search engines like Google. We have to be constantly vigilant that our trading styles are not abused by third parties and report them to the appropriate authority and search engine provider.

“Companies that masquerade as ‘not for profit’ debt advice providers are entirely different from licensed companies that provide a combination of initial free debt advice and then chargeable debt management services afterwards. Any fees applicable should be totally transparent when the consumer selects the most appropriate debt solution for their circumstances, which could, for example, be self-management, a Debt Management Plan (DMP), an IVA or a supported Bankruptcy service.”

Article sourced from www.debtmanagementtoday.co.uk 11th March 2009