Debt management companies under pressure
A number of debt management companies in the UK are this week fighting for their future after the OFT issued 129 formal warnings to companies operating in sector. The OFT undertook a "website sweep" posing as a mystery shopper only to find that some of the advice and information given to potential customers was well below the standards expected.
Indeed the OFT has gone as far as to suggest that some of the advertising in the industry is misleading and some of the advice given is of a very poor standard. This comes at a time when more and more people in the UK are turning to debt management companies for advice and help to try and rescue their precarious financial situations. Those who have ever transacted with any debt management companies will know that this particular arena can be a minefield and can in some circumstances be very expensive.
This particular area of the financial sector is now fully licensed after initially operating somewhat under the radar in the early days. However, the consumers of today now need protection from substandard advice and misleading advertising although it has to be said that the vast majority of those operating in the industry follow the official guidelines.
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