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Citizens Advice welcomes response to its super complaint on cold call credit but wants cold call ban
Originally posted by 5corpio
Citizens Advice today welcomed the Office of Fair Trading’s (OFT) response to their super complaint on cold call credit and debt management.
A report published by the charity in March revealed how tens of thousands of people are being tricked out of large sums of money by rogue loan finder firms taking advantage of the difficult economic climate.
Citizens Advice Chief Executive Gillian Guy said: “We are very pleased that the OFT agrees there is a serious problem and that action is needed to stop cold-call credit brokers tricking vulnerable people out of large sums of money for non-existent loans and other financial services.
“Rogue firms need to be stopped in their tracks before they get their hands on anyone’s money. Current economic conditions are providing fertile ground for unscrupulous credit businesses and fraudsters and the problem is set to grow much worse. That’s why we still believe there is a compelling case for a ban on cold calls to shut this gateway to scams.”
“Looking at closing loopholes in the law - including a possible ban on upfront fees - and convening a round table between the industry, consumer groups and regulators to look at tackling cold calling are important steps towards tackling some of the problems we highlighted in our super complaint. We also welcome the OFT’s consultation on new credit brokerage guidance and revised debt management guidance, and their pledge to take strong action against rogue firms.”
The super complaint
Cashing in, based on evidence from Citizens Advice Bureaux all over England, Wales and Scotland, described how victims of the recession are being targeted by firms who phone or text out of the blue offering to help find a loan. People are then charged a hefty fee for a loan that often fails to materialise, and cannot get their money....Click HERE to read more
A report published by the charity in March revealed how tens of thousands of people are being tricked out of large sums of money by rogue loan finder firms taking advantage of the difficult economic climate.
Citizens Advice Chief Executive Gillian Guy said: “We are very pleased that the OFT agrees there is a serious problem and that action is needed to stop cold-call credit brokers tricking vulnerable people out of large sums of money for non-existent loans and other financial services.
“Rogue firms need to be stopped in their tracks before they get their hands on anyone’s money. Current economic conditions are providing fertile ground for unscrupulous credit businesses and fraudsters and the problem is set to grow much worse. That’s why we still believe there is a compelling case for a ban on cold calls to shut this gateway to scams.”
“Looking at closing loopholes in the law - including a possible ban on upfront fees - and convening a round table between the industry, consumer groups and regulators to look at tackling cold calling are important steps towards tackling some of the problems we highlighted in our super complaint. We also welcome the OFT’s consultation on new credit brokerage guidance and revised debt management guidance, and their pledge to take strong action against rogue firms.”
The super complaint
Cashing in, based on evidence from Citizens Advice Bureaux all over England, Wales and Scotland, described how victims of the recession are being targeted by firms who phone or text out of the blue offering to help find a loan. People are then charged a hefty fee for a loan that often fails to materialise, and cannot get their money....Click HERE to read more