subject: Citizen Advice urge the OFT to act over cold call debt management companies and fake loan companies [print this page] Citizen Advice urge the OFT to act over cold call debt management companies and fake loan companies
Citizens Advice says 840m cold calls were made by debt management companies in 2009. Additionally, the OFT reports that loan scams affect at least 110,000 people a year and cost UK individuals 190m a year.
The Citizen Advice reported in one case where a woman was refused a loan and then received a cold call from a debt management company which took her details and went on to take fees of 825 from her bank account. She was then introduced to a PPI firm who wanted to charge her 705 to investigate whether her credit card agreements were valid.
The chief executive of Citizens Advice for England and Wales, Gillian Guy commented: "Current economic conditions provide fertile ground for unscrupulous credit businesses and fraudsters. Increasing numbers of people are at risk of falling into debt because of job loss or a fall in income. For many, mainstream credit is out of reach, and a cold call or text offering help finding a loan is naturally tempting."
Trust Deed Scotland is the largest introducers of Trust Deeds in Scotland. Trust Deeds are the Scottish equivalent of an IVA and are used as an alternative to sequestration in Scotland but is a debt solution that only suits those with financial difficulties and that are struggling to repay unsecured debt over 10,000.
A spokesman for TrustDeedScotland.net said "We have heard stories of unscrupulous firms charging setup fees for trust deeds. In some instances, debt management companies will take 2-3 months of the person's disposable income as a down-payment for debt. They are taking advance of people in a vulnerable position. It is really quite disgraceful for debt management companies to behave in this manner.
TrustDeedScotland never has nor never will, work with providers who charge setup fees. Likewise, we do not cold call people either; if we feel that an individual is not suited for a Trust Deed we will advise them of alternative options.
We would advise anyone who is receiving aggressive sales calls from a debt solution company to walk away and seek professional FREE advice from a debt charity such as the CCCS or CAB. Alternatively, you can call us on 0141 221 0999 for ethical advise on Trust Deeds or Scottish Debt in general"
The OFT have 90 days to respond to the complaint. You can follow this story by bookmarking our Trust Deed blog and/or following us on our Trust Deed Twitter.
