People 'should be wary of 'too good to be true' debt schemes
People 'should be wary of 'too good to be true' debt schemes
- Wednesday, 24 June 2009People struggling with debt should be wary of schemes that promise to "sell off" the financial burden, according to the Office of Fair Trading (OFT).
The group's director of credit, Ray Watson, explained that schemes advertised on the web and in newspapers that look "too good to be true" often are - particularly when they promise to write off debts by purchasing a consumer's credit agreement or take over liability for money owed.
"You cannot simply sell on your debt and its liabilities, and businesses that make misleading claims to the contrary are just trying to take advantage of consumers' distress," he explained.
Mr Watson added that the OFT intends to take "swift action" in cases where consumers are deliberately misled by businesses.
A wiser alternative for those seeking
debt management advice would be to contact creditors to sort out a repayment plan, or failing that, request free assistance from the Citizen's Advice Bureau, he concluded.
As of April this year, Britain's total personal debt was increasing at a rate of £1 million every 100 minutes.

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