Consumer Alert from OFT Website

Mark_Davis

CONSUMER ALERT

[FONT=&quot] [/FONT]
CLAIMS REGULATOR AND OFT WARN CONSUMERS ABOUT RISKS OF BEING MISLED OVER THE ENFORCEABILITY OF CONSUMER CREDIT AGREEMEMTS
[FONT=&quot] [/FONT]
The Claims Management Regulator at the Ministry of Justice and the Office or Fair Trading (OFT) are warning consumers to think carefully before responding to businesses claiming that they can arrange for outstanding balances under loan, credit card and other consumer credit agreements to be written off and secure compensation.
[FONT=&quot] [/FONT]
[FONT=&quot]Consumers are advised to seek independent advice before using the services of businesses that offer to find ways to render consumer credit agreements unenforceable. Businesses can only provide claims services if they are authorised and regulated by the MOJ under the Compensation Act 2006. Such businesses may also need to hold an appropriate OFT consumer credit licence. [/FONT]
[FONT=&quot] [/FONT]
Consumers may be asked to pay large up-front fees, often up to £500, for the businesses to review their credit agreements. Some businesses are claiming that many of these agreements are completely unenforceable, that consumers can have debts cancelled and claim back thousands of pounds. Consumers should think very carefully before committing themselves to making claims and handing over hundreds of pounds in advance to do so, even where refunds may be promised if the claim is unsuccessful.
[FONT=&quot] [/FONT]
[FONT=&quot]Consumers with specific debt problems may wish to contact their local Citizens Advice Bureau who will often be able to provide advice free of charge. Free, impartial advice can also be obtained from the contacts at the end of this alert. [/FONT]

YorkshireBoy

Here's a link to the full press release...

http://www.oft.gov.uk/news/press/2008/consumeralert

NickX

Thanks for this information.

I am getting very suspicious of these organisations because posts suggesting their services appear on here regularly, yet I have not seen a single post from someone who has successfully completed the process with one of these companies.

Mark_Davis

NickX wrote: »

Thanks for this information.

I am getting very suspicious of these organisations because posts suggesting their services appear on here regularly, yet I have not seen a single post from someone who has successfully completed the process with one of these companies.

There were a number of posts recently that I found very useful but they have disappeared after the shutdown.

We already have a links page on this site that shows the good organisations.

I think we should have a list of dodgy organisations that the OFT is referring to.