The United Kingdom’s financial industry watchdog, the Office of Fair Trading (OFT), has recently been compelled to take action against 13 of the country’s debt management companies. It has been claimed that these companies, whose remit is to assist individuals facing mounting debt problems by offering repayment plans and other debt solutions, were in fact drawing in customers by deliberately deceiving them into believing that they were visiting the website of a government organisation.
These unscrupulous debt management companies were using names and website addresses that could easily be mistaken for charitable, not for profit or government managed organisations. Of course, there is nothing sinister about the debt management industry in itself so there is absolutely no need for such deception. However, to date the OFT have shut down almost thirty of these fraudulent debt companies.
Those debt management companies that do charge for their services are an important part of the industry. The waiting time to be seen by government agencies like the Citizens Advice Bureau can be extremely long and in a high pressure situation, this time can be extremely valuable. Fee-charging debt management companies will often strive to take their payment from the creditor’s side anyway. After all, if you are struggling with debt and unable to meet your repayment commitments to creditors, a reduced payment amount that includes a proportionate fee for the debt management company is still easier to manage.
There are many debt management companies that are long established and well respected in the UK’s financial services industry. These companies adhere to the strict codes of conduct set out by the OFT and have a full consumer credit license. There is no need for them to wrongly assume the identity of a non-profit organisation as they provide a valuable and necessary service that can be well worth any fees charged. Furthermore, many will offer a free service that allows you to monitor your level of personal debt and guide you through the debt solution options that would best suit someone in your situation. Such is their experience in the field, giving an introductory insight into these solutions is quick, easy and impartial. The debt check-up at www.debtsolver.co.uk is just one example of this service.
Although these companies have been around a long time and have established themselves as a trustworthy and reliable source of debt advice, the recent financial situation and recession has resulted in an increased number of unscrupulous companies. The pressure of high unemployment and other debt causing factors has promoted growth within the marketplace and more choice and increased competition are, as ever, good things for the consumer. However, it’s more important than ever to find a company you can trust. Due to the stress and time sensitive nature of debt problems, you should act quickly, at the first sign of impending debt trouble, but you should also act sensible and go for a company that you can trust. Again, starting with free and impartial advice from an industry leader like www.debtsolver.co.uk is strongly advised.