Belmont Thornton Logo
PPI Claims - About PPI

PPI Claim News

Loan protection: Debt management firms could 'lose licences'

Around 129 debt management firms risk losing their consumer credit licences if they do not adhere to the Office of Fair Trading's (OFT) debt management guidelines.

The OFT has issued a formal warning to these companies following a review into the sector, which found that the advertising employed by the firms was misleading.

These companies have been criticised by the OFT for failing to reveal that they charge customers for their services.

Another problem identified was that many of the firms in question were not aware of the Financial Ombudsman Service's rules for resolving customer complaints.

Ray Watson, director of the OFT's consumer credit group, said: "People who are heavily indebted, desperate and vulnerable need advice which makes their problem better not worse and should not be exploited."

The firms have six months to provide evidence that they are adhering to the OFT's debt management guidelines before their licences are revoked.

The government recently launched the My Home Finance Scheme, which is designed to provide an affordable personal loan with 29.9 per cent APR, as an alternative to payday loans.

Posted by Charles Baker

Charles is a reputed financial analyst with almost decades of experience under his belt.ADNFCR-2776-ID-800087351-ADNFCR

Bookmark and Share
Tell a Friend
blog comments powered by Disqus

Enquiry Form

First Name 
Last Name 
Mobile Phone
Home Phone
Address Line 1 
Post Code 
Claim Back Mis-Sold PPI Button

Belmont Thornton Limited is regulated by the Financial Conduct Authority in respect of regulated claims management activities; FRN:838450

Belmont Thornton Limited is incorporated in England and Wales, Company number 6621233, whose head office at Unit B11, Kestrel Court, Harbour Road, Portishead, Bristol, BS20 7AN and registered office at Harwood House, 43 Harwood Road, London, SW6 4QP.

Belmont Thornton Limited is registered with the Information Commissioners Office. Registration number Z1728023.

Please note that calls may be monitored for the purposes of staff training.

* Belmont Thornton operates on a "No Win No Fee" basis. This means that there are no upfront costs to pay. Our fee only becomes payable on a successful outcome of a claim. A cancellation fee is payable if you decide that having instructed Belmont Thornton to act on your behalf, and after 14 days of signing your Letter of Authority, you do not wish to continue pursuing your claim with us. The cancellation fee is the reasonable costs incurred for the work undertaken. Please see our terms of engagement.

By using our web-site, you agree that we can place the types of cookies described in our privacy policy on your device.Hide