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Loans firms decision due from OFT | Loans firms decision due from OFT |
(about 9 hours later) | |
A decision over whether action should be taken against firms making unsolicited loan offers is due from the fair trading regulator later. | A decision over whether action should be taken against firms making unsolicited loan offers is due from the fair trading regulator later. |
The Office of Fair Trading (OFT) must decide whether to intervene following a super-complaint from Citizens Advice. | The Office of Fair Trading (OFT) must decide whether to intervene following a super-complaint from Citizens Advice. |
The group said that unscrupulous firms were charging hefty up-front fees after offering to find loans for people who were desperate for cash. | The group said that unscrupulous firms were charging hefty up-front fees after offering to find loans for people who were desperate for cash. |
Some loans failed to materialise and calls to the firms were expensive. | Some loans failed to materialise and calls to the firms were expensive. |
Citizens Advice said that the current economic conditions were providing "fertile ground" for rogue credit businesses, with many households facing financial difficulties. | Citizens Advice said that the current economic conditions were providing "fertile ground" for rogue credit businesses, with many households facing financial difficulties. |
The charity said it had spoken to people in England, Wales and Scotland who had suffered at the hands of unscrupulous credit firms. | The charity said it had spoken to people in England, Wales and Scotland who had suffered at the hands of unscrupulous credit firms. |
In these cases, people had received a text message or telephone call from a firm offering to find them an unsecured loan. | In these cases, people had received a text message or telephone call from a firm offering to find them an unsecured loan. |
Those who accepted were then charged large up-front fees for little or no service in return. | Those who accepted were then charged large up-front fees for little or no service in return. |
Other victims were persuaded to hand over their bank details and later found that money had been taken from their account without their permission. | Other victims were persuaded to hand over their bank details and later found that money had been taken from their account without their permission. |
Victims struggled to get somebody to deal with the issue, and were charged a premium rate when calling to complain. | Victims struggled to get somebody to deal with the issue, and were charged a premium rate when calling to complain. |
They also found that, instead, they were being inundated by calls and text messages offering loans or debt management services from other firms. | They also found that, instead, they were being inundated by calls and text messages offering loans or debt management services from other firms. |
The OFT must respond to this super-complaint from Citizens Advice within 90 days of it being made. The deadline for that response is on Wednesday. | The OFT must respond to this super-complaint from Citizens Advice within 90 days of it being made. The deadline for that response is on Wednesday. |
The Association of Business Recovery Professionals, which represents legitimate debt management companies, has also called for the OFT to step up regulation of the industry. | The Association of Business Recovery Professionals, which represents legitimate debt management companies, has also called for the OFT to step up regulation of the industry. |
Have you been affected by any of the issues raised in this story? Send us your comments and experiences using the form below. |