Misleading Debt Management Advertising
Where to Find Free and Independent Personal Debt Advice
Apr 6, 2009
Justice Minister Bridget Prentice said: “Vulnerable people facing debt problems need help and support. We have produced this guidance to protect innocent customers from being misled by businesses advertising easy and quick arrangements for outstanding loan, credit card and other similar debts to be written off…”
Misleading Statements from Some Debt Management Companies
The Ministry have also highlighted a number of statements they consider to be misleading:
- “80% of credit agreements are unenforceable!”
- “We’ll get your credit cards written off within 6 weeks!”
- “We have a 100% success rate!”
- “A positive outcome is guaranteed!”
This new government guidance follows joint Ministry of Justice and Office of Fair Trading advice for consumers struggling with debt. That advice is clear and unambiguous, consumers should take independent advice before accepting help from the companies who make statements like the ones listed above.
If a person were to Google the search term "help with debt" they would be faced with a staggering 32,200,000 pages. How can anyone with no knowledge of debt management procedure possibly choose an appropriate company to help?
Free and Independent Debt Advice
One of the few pieces of good news for people with large amounts of personal debt is that there is help out there and it’s free and independent. There is a way forward.
Some of the help available:
- Budgeting advice
- Debt management plans
- Debt counselling
- Individual Voluntary Arrangements (IVA’s)
- Protected Trust Deed (in Scotland)
- Bankruptcy
Consumers can also be offered help to identify priority debts, like a mortgage, rent on a house, payments due to the Inland Revenue, utility bills and council tax payments.
There is a range of free legal advice available. For example some of the most common questions asked are:
- “Am I liable for my partners debt?”
- “If I die does the debt die with me?”
- “What do I do if I receive a County Court Claim Form?” (England and Wales )
- “When can a creditor take me to court?”
Organisations That Offer Free Independent Debt Advice:
- National Debtline (Money Advice Trust)
- Citizens Advice Bureau
- Consumer Credit Counselling Service (CCCS)
- UK Insolvency Helpline
- UK Information Commissioner’s Office
Much of the help available can be accessed on-line or on the telephone and many of the initial enquiries can be made anonymously.
For example an on-line CCCS Debt Remedy session will only take around 20 minutes to complete. Many people who use this service find that for the first time they can finally see a solution to their personal debt problems.
Sources of information:
UK Ministry of Justice, statement by Bridget Prentice 17 February 2009
Consumer Credit Counselling Service (CCCS)
 |
 |
