OFT Crackdown on Cold-Calling by Debt Management Firms
Date online: 01/05/2011
The Office of Fair Trading (OFT) has warned debt management firms to stop using unsolicited and misleading cold-calling practices to generate client leads.
As part of its crackdown on illegal cold-calling within the debt management industry, the OFT has recently revoked the consumer credit licence of a company which used various improper practices, including e-mail ‘spamming’, misrepresenting itself as making calls on behalf of the Government and claiming that it could arrange for consumer debt to be written off for free.
The OFT is working with the industry's trade associations to warn members that they should only use licensed lead generation firms and that failure to do so could lead to licensing action. This will be reflected in revised guidance for companies working in the industry, which is due to be published for consultation next year.
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