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Full Adjudication - UK Logical Ltd
Another claims management company rapped by the ASA
Wednesday 22nd July 2009
The Advertising Standards Authority has picked up the pace in dealing with the growing number of adverts detailing claims management services, recently warning a string of firms about making misleading statements.
The latest claims management company to come under fire from the ASA is Yorkshire-based UK Logical, which urged consumers to “legally clear your credit cards and loans” and stated that the firm had an 80% success rate in getting their customers’ debts written off.
However, the ASA has since branded the advertisement “misleading”. The firm was also criticised for claiming that there were no hidden charges when, in fact, a £50 admin fee per agreement was charged.
This is the third claims management company that the ASA has taken action against this year, with many firms in the controversial sector being accused of “claims farming” – where the fee is taken but no action to try and clear the debt is.
Commenting on the UK Logical ad, the ASA said: “[It] was likely to be understood by readers to mean that UK Logical had an 80 per cent and above success rate at clearing customers’ credit card debts and loans. Because we had not seen evidence demonstrating that that was the case, we considered the ad was likely to mislead readers about the likelihood of their debts being written off.”
Another claims management company rapped by the ASA
Wednesday 22nd July 2009
The Advertising Standards Authority has picked up the pace in dealing with the growing number of adverts detailing claims management services, recently warning a string of firms about making misleading statements.
The latest claims management company to come under fire from the ASA is Yorkshire-based UK Logical, which urged consumers to “legally clear your credit cards and loans” and stated that the firm had an 80% success rate in getting their customers’ debts written off.
However, the ASA has since branded the advertisement “misleading”. The firm was also criticised for claiming that there were no hidden charges when, in fact, a £50 admin fee per agreement was charged.
This is the third claims management company that the ASA has taken action against this year, with many firms in the controversial sector being accused of “claims farming” – where the fee is taken but no action to try and clear the debt is.
Commenting on the UK Logical ad, the ASA said: “[It] was likely to be understood by readers to mean that UK Logical had an 80 per cent and above success rate at clearing customers’ credit card debts and loans. Because we had not seen evidence demonstrating that that was the case, we considered the ad was likely to mislead readers about the likelihood of their debts being written off.”
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