Claims Management Threatening the Reputation of the Industry

May 2009

EuroDebt warns of risks to debt management industry if disreputable operators are not tackled

Following the news that the Solicitors Regulation Authority (SRA) is investigating ten practices suspected of taking on claims management firms engaged in dodgy practices, leading debt management provider, EuroDebt Financial Services is warning of the implications for the debt management sector as a whole.

"It is extremely worrying that disreputable practice could pull down the reputation of our industry as a whole" confirmed Kevin Still, Director, EuroDebt. "However, it is encouraging that at least the trade bodies that regulate organisations are coming down hard on infringements.

"The SRA announcement follows recent press releases by the Ministry of Justice, the regulator for Claims Management Companies, and the OFT highlighting concerns they have with both the advertising undertaken by these companies and the risk to consumers if they misguidedly stop payments to creditors.

"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."

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