OFT warns lead generator ~ Debt Managements and Consolidation

The OFT announced yesterday that they had imposed ‘requirements’ on a debt management lead generation company, due to their misleading advertising.

Money Advice Direct Limited (MADL), are a licensed lead generator, who introduce people to either debt management or Individual Voluntary Arrangement (IVA) providers via their website.

However, the OFT has raised concerns over some of the advertising on the website, which led readers to believe that MADL was a non-profit organisation that was offered debt solutions rather than a commercial business that merely passed on contact details to other providers in exchange for a fee.

The OFT's Director of Consumer Credit, Ray Watson, said: “It is important that consumers seeking help for debt problems know who they are dealing with and whether the company is providing an actual service or is simply a lead generator. We would advise anyone in financial difficulty to seek free debt advice or check whether the company they are in touch with is a member of the Debt Management Standards Association (DEMSA), which has an OFT accredited code.”

Following investigations by the OFT, MADL has been told that they must make clear in all their advertising that it is not a debt solutions provider, that it does not provide an independent service and that it is not publicly funded.

The OFT also told MADL that they must hire an independent auditor to ensure that all of the imposed requirements are met and that their trade name ‘The UK Insolvency Helpline’ may have to be changed.
In addition, MADL’s recent application to add the trade names ‘www.ivahelpline.co.uk’ and ‘www.insolvencyhelpline.co.uk’ to its licence, will most likely be refused.

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