The Importance of Using a Reputable Debt Management Plan Company
In recent months certain firms in the debt management plan sector has come under scrutiny from the Office of Fair Trading over their operating practices.
Baker Evans Ltd was restricted at the beginning of December on its use of the terms "Insolvency Helpline" and "Bankruptcy Helpline". The company was warned that these names might lead consumers to think that the company was a "non-commercial" body.
Ray Watson of the OFT said that "consumer must be able to distinguish commercial debt management companies from free charitable or government services".
The company vowed to stay by their trading names and insisted that their website was clear about its services.
The decision was welcomed by the Association of Professional Debt Solution Intermediaries with its Secretary General, Alasdair Warwood saying “APDSI very much welcomes the OFT's action in reminding debt management companies that it is unacceptable for them to use names which might mislead consumers into believing they are dealing with a government body. It is just this sort of behaviour which can give the industry a bad name"
This recent news highlights the importance of using reputable debt management plan