The Office of Fair Trading could prevent many debt management organisations from using social media sites
by Alex Wright - Legal Associate
11 September 2011, filed under Debt
Many debt management organisations will be stopped from getting in contact with consumers through social media after a regulator review found huge problems concerning mislead advertising in the sector.
In an update, the draft format of the debt management guidance, which is now out for consultation, the OFT warned that using various social media sites such as Facebook and Twitter may not be a very good idea. It has stated that the use of links which are sponsored on engines used for searching may go against its guide on giving customers with clear, and correct details and information.
The latest guidance follows a review of compliance in the sector of debt management which had shown many concerns about advertising which is misleading and the quality of the advice which was being given to the customers. The Office of Fair Trading has made a claim stating its updated guide will help to raise transparency and make sure that all customers will have all the details needed to make an important informed decision about which solution is right for them.
Now, organisations who wish to provide consumers with a debt management solution, debt adjustment services or even counselling must have in their possession an up to date credit licence in order to do so, even if they are offering their services for free. The OFT has given written warnings to nearly 130 debt management organisations and is now taking action to revoke 11 customer credit licences since having published these findings of its new compliance review.
The Office of Fair trading has found that search engine links which are sponsored and the online messaging forums limit the number of words which affect the amount of information which is given to the consumer, making the information inadequate and misleading.
The director of the consumer group, David Fisher, has described the failings which were realised when reading the review as totally unacceptable.
If you're a business suffering woth debt issues, take a lok at out debt recovery section where you'll find affrodable late payment and debt recovery letter templates for your needs.
Payment Protection Insurance Law Leading To Record Complaints
01 June 2013
by Hermione - Legal Executive
Since 2011 the case law on mis sold payment protection insurance has been well settled. Throughout...
Free Will Templates From Legal Centre
08 January 2013
by Hermione Avila - Legal Executive
From all of our staff here in the Legal Centre office we wish you all a Happy New Year! To all of...
96 Deaths at Hillsborough Requires New Inquests
19 December 2012
by Sam Mitchell - Paralegal
There is suspicion that the Attorney General is looking to stop the inquest into the 96 deaths. The...