Fraudulent Debt Advice Companies Forced To Close

Four debt advice companies have had their Consumer Credit Licenses revoked by the Office of Fair Trading (OFT). The OFT found all four companies had sent unsolicited letters suggesting some people had been wrongly sold an IVA and that for a fee, they could switch to a different solution. The firms, which were all connected and all operated out of the Dorset area, were Bankruptcy Ltd, Intl Marketing, UK Bankruptcy, and Mortgage Link.

The OFT said that the unsubstantiated claims made in the mailings represented a breach of the OFT’s Debt Management guidance.

A number of firms had already been warned by the OFT not to undertake such practices three years ago.

An OFT spokesman said, “The mailings sent suggested that bankruptcy may be a better option for consumers, when this may not have been the case.” … “Consumers accepting the advertised services would have had to pay additional fees to switch to a different debt solution that may not have been in their best interests.”

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