An industry opinion on the OFT’s response to the Citizens’ Advice super complaint
ClearDebt’s view on the OFT’s response to the Citizens’ Advice super complaint.
ClearDebt, and our debt management company, Abacus, have never cold called or charged upfront fees. But, we would like to see the practices banned – because, even if, as the OFT has today shown, these practices are rare amongst reputable debt management companies, we think they lead to consumer distrust and disencourage them from getting help from companies like ClearDebt.
We really welcome today’s response by the Office of Fair Trading to the Citizens’ Advice super complaint on up-front fees and cold calling by the credit-brokerage and debt management industries. The OFT accepted our trade body’s view that the debt management industry did not charge up-front fees without providing a service and that consumers were rarely cold-called by debt management companies.
Here at ClearDebt, we think that the time has come to make things crystal clear. We would welcome a ban on up-front fees that are charged when no service is provided and on cold-calling where a consumer has not given prior informed consent, because this would strengthen consumer confidence in the debt resolution industry.