OFT issues new debt management guidance

The Office of Fair Trading (OFT) has issued new guidance

The Office of Fair Trading (OFT) has issued new guidance to companies offering debt management services, to ensure they avoid carrying out unfair practices.

It has pointed to practices like sending unsolicited texts, emails and voice messages, providing inappropriate incentives to staff to offer advice that may not be the best option for the client and making misleading claims about the status of the business as some of the activities it will clamp down on.

Director of the OFT's Consumer Credit Group David Fisher said it will "continue to take action against businesses that fail to follow our guidance."

ClearDebt is a member of the Debt Resolution Forum (DRF) and chief executive of the firm David Mond – who is also chairman of the DRF – welcomed the OFT announcement.

He added: "This guidance is automatically part of DRF's own mandatory members' code of standards – which exceeds that required by OFT."

Mr Mond said it was particularly good to see the licensing requirements being placed on providers of debt management and advice services being made more rigorous than before.

Posted by Paul Thacker

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