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OFT warns debt management and call centres to stop making unsolicited and misleading cold calls

Six debt management and four call centres have been told that they could face formal action if they failed to stop making unsolicited and misleading cold calls to advertise their debt schemes including Individual Voluntary Arrangements and Debt Management Plans.

The warning came after the trading watchdog and the Information Commissioner's Office (“ICO”) received a large number of complaints about the firms, which cannot be named.

The OFT said it was "completely unacceptable" for companies to take advantage of people with debt problems.

Vulnerable

Some firms may also have broken the law with the calls, the OFT said.

"Taking advantage of people who are suffering distress through debt problems is completely unacceptable and this practice of illegal or misleading cold-calling for debt management services must cease immediately," said Nigel Cates, deputy director of consumer credit at the OFT.

"The current economic climate means that it is vitally important vulnerable consumers are protected.  We will not hesitate to take action against any business that uses misleading calls to advertise debt management services."

Government scheme

Some callers were told they were some of the "few chosen individuals" who had been contacted as part of a “government scheme” to help wipe out consumer debt.

Others were transferred to a debt management business on the pretext of being passed on to a not-for-profit debt adviser.

They often failed to be honest about the reason for the call and the caller's identity.

Callers are not upfront about who they are and why they are ringing.  This is misleading.

Some of the firms have pestered people who had not given their consent to be called or who had registered with the Telephone Preference Service, which allows people to opt out of receiving sales and telemarketing calls.

Other news items

• 700,000 people in Debt Management Plans, posted on 05-06-2009
• Taxman to Use Debt Collection Agency, posted on 05-06-2009
• OFT warns debt management and call centres to stop making unsolicited and misleading cold calls, posted on 04-06-2009
• Personal Insolvency Statistics - Q1 2009, posted on 04-06-2009
• Accuma sells IVA book, posted on 04-06-2009
• Exeter City Council made a woman bankrupt for unpaid council tax, posted on 04-06-2009
• Camden Council obtain bankruptcy order against lady with mental health problems, posted on 04-06-2009
• Man made bankrupt for not paying Council Tax, posted on 04-06-2009