Debt Sale Scam Exposed

ClearDebt are delighted to have been thanked by The Office of Fair Trading for exposing 3 scam debt companies. The OFT issues warning to consumers over debt agencies offering to buy or sell debt. OFT and local trading standards services prosecute several agencies for unlicensed trading.

(PRWEB) June 26, 2009 -- Leading Debt solution and IVA (http://www.cleardebt.co.uk) expert, ClearDebt are delighted to have been thanked by the OFT (http://www.oft.gov.uk) (Office of Fair Trading) for alerting them to three of the companies who are now being investigated for promising consumers to buy off their credit card debt and relieving them of any legal obligations to payback their creditors.

•    OFT issues warning to consumers over debt agencies offering to buy or sell debt

•    ClearDebt thanked by the OFT for identifying three debt scam companies

•    OFT and local trading standards services prosecute several agencies for unlicensed trading

Andrew Smith, Marketing Director of ClearDebt comments: "We are very aware of how vulnerable consumers can be when burdened by debt. Because of that we feel it's our responsibility to ensure our company and any other which is providing a debt solution service, is acting in an honest manner. To do otherwise, is doing the unthinkable to people's livelihoods."

The OFT is warning consumers that the law does not allow the sale of debt without the lender's permission and businesses suggesting otherwise are intentionally misleading them. The OFT go on to say that any consumers choosing to take their chances with one of these agencies, either directly or through a broker, will still be liable for their original repayment obligations as well as losing the money they paid for this false service, and any debt collection activity or negative credit scoring associated with the original debt.

Whilst investigating the number of companies involved in these "scams" the OFT has discovered many are working without a consumer credit licence and have started prosecution proceedings against them for unlicensed trading.

Ray Watson, OFT Director of Credit, said:

"'Like most scams, when something looks too good to be true, it usually is. The OFT will not hesitate to take swift action against businesses which deliberately mislead consumers."

For advice on debt solutions (http://www.cleardebt.co.uk), consumers can call ClearDebt FREEPHONE 0800 0192 095

For further information contact: Jacqueline Cohen on 07976 739 125

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