The Office of Fair Trading (OFT) has claimed that over 35 debt management companies have reportedly surrendered their consumer credit licenses. Besides, over 15 are reported to be besieged by licensing action.
It is reported that the regulatory body has recently conducted an implicit review of the sector, extending warnings to over 129 firms, which were given until mid-December to provide evidence of compliance. The review found that frontline debt advisers linked to debt management firmed were lower on the competence barometer.
It is witnessed that there has been soaring concerns at the activities of the sector at a time when family finances are hit by huge pressure from economic turmoil, soaring inflation and huge levels of debt built up prior to the financial turmoil.
In addition to this, eight firms have been asked that their licenses will soon be revoked and another seven are to be considered for a further investigation process.
“Companies providing debt management services should be in no doubt that we will act against bad practice and ensure consumers are protected”, the OFT’s director consumer credit group, Ray Watson, was quoted as saying.