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OFT slams debt management lead generator
The Office of Fair Trading has taken action against Money Advice Direct Limited over advertising which misled customers into believing it was a non-profit debt management organisation.Requirements have subsequently been imposed on the firm after the OFT expressed concerns that about false statements and misleading advertising which concealed the commercial nature of the business, which acts as a lead generator passing people’s contact details to debt management firms in exchange for a fee.
Money Advice Direct Limited (MADL), which traded as the UK Insolvency Helpline, must now clarify to customers that it does not provide or administer debt solutions. It must also not imply that its service is independent or impartial and must provide.....Read more at Credit Today
MADL is an OFT licensed lead generation firm that operates by introducing people to debt management plan and Individual Voluntary Arrangement (IVA) providers via its website.
The OFT was concerned about false statements and misleading content on the company's website.
It is the OFT's view that this content encouraged consumers to believe that MADL was a not for profit organisation providing debt management solutions, rather than a commercial business acting as a lead generation company that passes contact details to debt management companies in exchange for a fee.
The requirements imposed on MADL set out that its advertising content across all media types, including its website, must: