The OFT has removed the licences of three debt management businesses. First Step Finance Limited (FSF), a large debt management company based in Stockport, can no longer trade in any business requiring a credit licence after the OFT identified serious concerns about the transparency and integrity of its practices.

The OFT made a decision to revoke FSF's licence in November 2012 after finding that among other things, FSF's advertising, marketing and other information failed adequately to highlight the risks or costs associated with using its services.FSF made, but then withdrew, an appeal against this decision, following which the OFT authorised it to trade for a short period, subject to strict conditions to protect consumers, so it could wind down or transfer its business. This period has now passed and FSF's consumer credit business has been transferred to another business.

Welcome Solutions Ltd (WSL), a Lancashire-based debt management company, has had its credit licence revoked after it too withdrew its appeal against an OFT decision to refuse to renew its licence. The OFT found that WSL, which traded as 'debtsorters.co.uk', had engaged in unfair or improper business practices, including falsely claiming or implying that its debt advice was provided on a free and impartial basis, and also publishing misleading or false customer testimonials.

Another OFT decision not to renew a licence of a debt management firm has also been upheld at appeal. Manchester-based Debt Connect (UK) Limited (DCL) was found to have engaged in a number of unfair business practices, including providing misleading and inaccurate information to consumers and failing to implement proper practices and procedures.....Read more HERE from OFT