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The Office of Fair Trading (OFT) recently warned the debt management industry to cease from using unsolicited and misleading cold-calling practices to generate client leads.
As part of its crackdown on illegal cold-calling in the sector, the OFT has recently revoked the consumer credit licence of a company which used various improper practices, including e-mail ‘spamming’, misrepresenting itself as making calls on behalf of the Government and claiming to be able to obtain the writing-off of consumer debt for free.
The OFT is working with the debt management industry trade associations to warn members that they should only use licensed lead generation firms and that failure to do so could lead to licensing action. This will be reflected in revised guidance for companies working in the industry, which is due to be published for consultation next year.