OFT to revoke licenses of 30 DMP firms

[Nibbler]

Normally I would take everything written in Crudit Today with a wheelbarrow of salt... But I hope this is true.

http://www.credittoday.co.uk/news/ne....cfm?news=2113

The Office of Fair Trading (OFT) is poised to announce that it has revoked a number of debt management firms’ consumer credit licences.

Following a crackdown in the debt management sector, the OFT is also set to reveal in around the next 10 days that about 30 debt management firms have already surrendered their licences to the regulator.

The OFT issued a report in September last year, which warned 129 debt management firms that they would lose their consumer credit licences, unless they took immediate action to comply with its debt management guidance.

In its initial report in September, the OFT found widespread problems in the sector, particularly among fee-charging firms. These included misleading advertising as the most significant area of non-compliance, in particular failing to disclose a fee is retained by the business, and misrepresenting debt management services as being free when they are not.

[The Debt Star]

Re: OFT to revoke licenses of 30 DMP firms

I wish they'd revoke the licences of some DCAs instead

[Nibbler]

Re: OFT to revoke licenses of 30 DMP firms

If the OFT revoked all the licenses they arguably should, there wouldn't be very much left to regulate.

[Angry Cat]

Re: OFT to revoke licenses of 30 DMP firms

Have already heard about this on the grapevine...

[Latch Key Kid]

Re: OFT to revoke licenses of 30 DMP firms

If the OFT revoked all the licenses they arguably should, there wouldn't be very much left to regulate.

Hi Nibbler

Im with you here.

[pompeyfaith]

Re: OFT to revoke licenses of 30 DMP firms

What about some of the wild claims CMC's make on TV adverts this needs looking at too specially the fee up front ones.

[Latch Key Kid]

Re: OFT to revoke licenses of 30 DMP firms

And then theres the.... 'Little Known Goverment Legislation' thats a good one.

[Amethyst]

Re: OFT to revoke licenses of 30 DMP firms

30 isn't bad from the original 129 - guess some have pulled their socks up a bit since last Sept.

OFT takes action to address widespread problems in debt management industry - The Office of Fair Trading

I can think of a few DMP firms I'd like to see on the binned list, but doubt they will be.

[leclerc]

Re: OFT to revoke licenses of 30 DMP firms

30 isn't bad from the original 129 - guess some have pulled their socks up a bit since last Sept.

OFT takes action to address widespread problems in debt management industry - The Office of Fair Trading

I can think of a few DMP firms I'd like to see on the binned list, but doubt they will be.

The full report actually says there were more than 129.....

Page 38 footnote

"In total 136 traders were identified as having non-compliance as part of the visits, two traders have subsequently surrendered their consumer credit licences and we are considering other action in the remaining cases"
------------------------------- merged -------------------------------
Mystery shopping showed ALL advisors failed to mention the Insolvency Service booklet "In Debt: Dealing with your creditors".
Powered by Google Docs

The above is the HTML version of the booklet....

[leclerc]

Re: OFT to revoke licenses of 30 DMP firms

You have got to read a copy of this especially chapter 6 on mystery shopping

[Monty66]

Re: OFT to revoke licenses of 30 DMP firms

I wish they'd revoke the licences of some DCAs instead

I wish they would revoke all of the DCAs licences.

[Angry Cat]

Re: OFT to revoke licenses of 30 DMP firms

I wish they would revoke all of the DCAs licences.

It is all about the 'fitness' to hold a consumer credit licence.

Therefore, all that we ask is that the DCA's fully comply with legislation as laid down;
fully observe the OFT guidelines on Debt Collection and;
other relevant guidelines that are endorsed by the OFT.

[Latch Key Kid]

Re: OFT to revoke licenses of 30 DMP firms

The full report actually says there were more than 129.....

Page 38 footnote

"In total 136 traders were identified as having non-compliance as part of the visits, two traders have subsequently surrendered their consumer credit licences and we are considering other action in the remaining cases"
------------------------------- merged -------------------------------
Mystery shopping showed ALL advisors failed to mention the Insolvency Service booklet "In Debt: Dealing with your creditors".
Powered by Google Docs

The above is the HTML version of the booklet....

I agree -'Just 136' Traders - out of how many were actually investigated.... apply this percentage wise across the board and what does this tell you about the fee charging debt advice industry.

Shocking. expensive and inexcusable figures for the victims in my book (especially for the most vulnerable people)

But lets be honest.... all they really care about is how much money they can make out of people who are in debt isnt it?

Do they really know anything about genuine debt advice or are they just commission based money making script reading salesman entities?

Who represents and speaks for these companies when reports like this (how many does it take) are published?

Nothing to say...as always....scared of an open debate.

I guess...silence is golden, hide, hide away or post on forums under sock puppet user names as usual.

Little Known Goverment Legislation (thousands of pounds in fees out of the debtors pockets) - (IVAs) - thats a good one.