Debt management firms which charge consumers for advice have been warned against sending people unsolicited marketing text messages, emails or voicemails by the Office of Fair Trading. The OFT issued warnings to 129 businesses following a review of the commercial debt advice sector. The OFT also told firms that they must not offer financial incentives to staff for selling products such as debt management products as this may encourage unsuitable advice.

The new rules have been drawn up after a review of the sector in 2010 revealed widespread concerns about advertising and marketing practices as well as the quality of advice being given. Firms have been told that they could lose their consumer credit licence if they are found to:

  • Send unsolicited marketing text messages, email or voicemails
  • Provide inappropriate financial incentives to staff giving debt advice
  • Make false or misleading claims regarding the status of the business, for example operating websites which look like the website of a charity or a government body.
The OFT also told firms that they must refer consumers to...Read more HERE