The Office of Fair Trading (OFT) has recently warned debt management companies to stop using unsolicited and misleading cold-calling to generate client leads.
This warning is part of the OFT's crackdown on illegal cold-calling within the debt management industry. The crackdown has already resulted in a company's license being revoked, after it came to light that they had been using various improper practices. These practices included e-mail spamming and misrepresenting itself as making calls on behalf of the Government, then claiming that it could write consumer debt off for free.
The OFT is currently working in partnership with the debt management industry's trade associations to warn members that they should only be using licensed lead generation firms. Companies are also being warned that failure to do so could result in licensing action. This warning will be reflected in revised guidance for debt management companies, which will be published for consultation next year.
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