Warning issued over dodgy claims management firms

08/05/2009

EuroDebt has fiercely criticised rogue claims management firms for damaging the reputation of the debt management sector.

Kevin Still, director of EuroDebt, said that some dodgy companies were engaging in "disreputable" practices - and warned clients that they should tread carefully when selecting a provider.

The comments follow news from the Solicitors Regulation Authority that ten law firms are currently under investigation for taking business from claims management companies who were deceiving customers.

According to the lawyers, some claims management companies make misleading claims that they could wipe out their debts by exploiting loopholes in card and loan contracts.

However, this is often untrue - meaning that clients will be left out of pocket in the end.

Mr Still added: "It is extremely worrying that disreputable practice could pull down the reputation of our industry as a whole - however, it is encouraging that at least the trade bodies that regulate organisations are coming down hard on infringements.

"We are strongly advising any clients who are contacted by claims management companies to read the press releases on the Ministry of Justice or Office of Fair Trading websites before selecting a licensed provider. The stories are also accessible from the EuroDebt website at www.EuroDebt.com."

Tags; Debt Management and Banking, Credit Card Lifestyle,

• Share
• 
• 
• Store
• 
• Follow
•