8th July '08 - Debt Management Plan Company Shut Down by OFT
The Office of Fair Trading (OFT) have shut down a debt management plan company which was found to be cheating customers out of their money.The owner of the debt management plan company has also had his consumer credit license cancelled.
It is understood that the OFT took the action after the BBC programme Watchdog ran a feature on the unscrupulous operator detailing how it had refused to reimburse consumers, failed to pay creditors and misleadingly advertised its services.
Websites selling the groups services have now been withdrawn, as have its advertisements, offering “free, independent and impartial debt advice”.
At least one customer is believed to have faced bankruptcy as a result of being “fleeced” by the debt company.
Commenting on the action taken against the debt management plan company, the OFT’s director of consumer credit said, “This is one of the most serious cases involving debt management services we have encountered.
“We have evidence that consumers parted with tens of thousands of pounds and suffered increased financial hardship as a result.”
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