A debt advice firm that is operating in the UK has been issued with a stark warning from the UK watchdog, the Office of Fair Trading, which has told the firm to stop using misleading content and false statements in its marketing and advertising materials. The warning has been issued to Money Advice Direct Limited, which has been trading as UK Insolvency Helpline.
The firm focuses on matching those that are struggling with their debts with debt management companies who may be able to offer solutions. However, the firm is said to have been using advertising materials and statements that make it appear as though it offers its services for free, which is not the case. The OFT said that the statements and content being used in the advertising can easily lead consumers to believe that this is a charity that is aimed at helping those with debt problems rather than a profit making company.
As the company operates under the name of UK Insolvency Helpline it has also been told to change its name by the OFT. The watchdog said that this name makes the company sound too officials and makes it sound like it could be a government run program designed to help those struggling with debt when this is not the case. However, many consumers could get confused and assume that this is the case.
One debt industry official said: “In the personal debt industry we are working with people who are often in extremely vulnerable situations. There is a responsibility to ensure that we give the right advice and that people understand exactly what is being suggested, who they will be dealing with and the associated costs involved.”
Tags: United Kingdom, Financial Services, stark warning, Business and Economy, Credit Services, lead generatorAn OFT official added: “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.”
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