OFT "Warning Shot" abouit misleading letters

[CoverItAll]

The Office of Fair Trading is today warning consumers to be careful before responding to unsolicited letters advising them to cancel existing individual voluntary arrangements.

Consumers are being advised to look out for suspicious letters suggesting they opt for an alternative debt management solution such as bankruptcy or, that they may have already been mis-sold the existing IVA.

So far the OFT has issued warnings to 12 businesses for misleading claims and has given them four weeks to respond.

They have been told to amend any misleading claims made in their IVA advertising material and to be more transparent about the possible implications of terminating an existing IVA.

Ray Watson, OFT Director for Consumer Credit, says: “Tackling companies who are engaging in unfair business practices by targeting vulnerable consumers with misleading advice and information is a key priority for the OFT.

“We expect any advice and/or information given to debtors to be in their best interests and it should include a full explanation of the implications of offers or advice.”

What a pity they haven't been "names and shamed".