Charity lodges super complaint at OFT over rogue finance firms

Tens of thousands of people are being conned by rogue loan and debt management firms, Citizens Advice has warned.

The national charity has lodged a super complaint with the Office of Fair Trading.

It wants a ban on cold calling by credit or debt management firms, and a ban on up-front fees.

Citizens Advice says its research shows that debt management firms made 840 million cold calls in 2009, with loan fee scams affecting at least 110,000 people a year.

Customers are charged a hefty fee for a loan that often never materialises, and  in many cases part with bank account details and have money withdrawn from their account without their consent.

Gillian Guy, chief executive of Citizens Advice, said: “Our evidence suggests that rogue operators are cashing in on the desperation of people hit hard by the recession who are least able to afford it, and that this problem is set to grow much worse.

“Because of the seriousness of the situation, we are making a super-complaint to the OFT and asking them to launch an immediate investigation with a view to deciding that a ban on cold calls and up-front fees is appropriate.”