Misleading Debt Firms Shut Down

One hundred companies offering to write off debts or secure personal injury compensation have been shut down by the Ministry of Justice in the last two years.

The Ministry of Justice said a number of firms had been guilty of misleading advertising, claiming that credit card debt could be written off within six weeks or that 80% of credit agreements were unenforceable.

One hundred companies offering to write off debts or secure personal injury compensation have been shut down by the Ministry of Justice in the last two years.

The Ministry of Justice said a number of firms had been guilty of misleading advertising, claiming that credit card debt could be written off within six weeks or that 80% of credit agreements were unenforceable.

MoJ spokesman Kevin Rousell said “People desperate for a way out of their financial troubles can be vulnerable to the misleading marketing that the Ministry of Justice Claims Management Regulator is continuing to tackle.”

The Ministry of Justice is the regulator for claims management companies. They can take action against companies who break the rules.

• Authorised companies should not cold-call you or pressurise you into taking up their offer.
• They should give you written information on the costs before you agree a contract with them.
• There should be a cooling off period of 14 days to allow you to change your mind.
• The company should have a proper complaints policy.

The number to call if you have a complaint about a claims management company is 0845 450 6858.

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