Charity backs action against false claim firms

Action to shut down firms who make spurious claims about how they can help those in debt have been welcomed by the Debt Advice Foundation.

The charity’s managing director David Rodger commented: “It is encouraging to see that the regulator is taking action against claims companies who do not comply with the rules set in place to protect everyday consumers.”

He also noted that a “wide range” of different kinds of companies had been found out trying to trick people with debt management issues.

Mr Rodger was commenting after this month saw the Ministry of Justice’s Claims Management Regulator closing down its 100th firm for making dubious claims.

Among the sort of promises the regulator found firms making were suggestions that credit card debts could be discounted within six weeks and that four out of five credit agreements are unenforceable.

Some even claimed to be able to write off consumers’ debts altogether.

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