The Office of Fair Trading has cracked down on three more debt management businesses.
It has prevented London-based Money Advice Direct from trading as the UK Insolvency Helpline and from using any domain names that include the word ‘helpline.’
It said the word does not make the commercial nature of the business clear to consumers.
The OFT has also revoked the licence of Prime Legal and Financial Services of London for failing to demonstrate the necessary skills, knowledge or experience to hold a consumer credit licence.
The third firm, Deric Hamilton Olive in Midlothian, has had its application for a licence rejected after it supplied the OFT with false information.
Since the OFT began its crackdown last year, 62 debt management companies have been given revocation orders, surrendered their licences or had their applications refused.
David Fisher, the OFT’s director of consumer credit, said: “We expect commercial debt management businesses to meet the standards that we set out in our guidance. If they don’t, we will take action as we have demonstrated here.
“Revised debt management guidance, which is due to be published before the end of the year, will give even greater clarity as to the standards that the OFT expects of businesses that it licenses in this sector.”
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