QUESTION

I wonder if you can answer a question for me my daughter has recently gone to one of these private debt management companies you hear about claiming allsorts of things reductions etc. do they need a consumer credit licence to practice or as in this case can any cowboy full of promises that left her in a far worse state. I would be most grateful for your help in this matter

Reply

Debt management is one of the fastest growing industries in the world today. The ability to communicate over the Internet has increased the catchment area and made the regulation of these companies/individuals difficult. It is an absolute must that all those involved in debt adjustment/negotiation are licensed by the Office of Fair Trading (OFT): it is not unreasonable to ask to see their licence.

This week alone I have received 20 e-mails about debt help. The reply e-mail address is to a free internet service provider (ISP): like FreeServe, and the web site is also provided by a free ISP. This type of service will undoubtedly charge up front fees and are unlikely to provide any real help: I suspect they are unlicensed.

Any debt help you receive should not have up front fees just for talking to someone. As to the original question, I would ask for a copy of the companys OFT licence, and whether they have one or not report their activity to the OFT (a licence does not mean you can be negligent). Write to all creditors asking them to give you some time to organise more help and choose a debt adviser that is known (see the 'link' below).

LINKS: Credit to Cash can provide you with contacts to deal effectively with your particular needs. Go to the following for more information on their services for DEBT or INSOLVENCY

Many thanks to Colin Duguid of Debt 24.com who is taking the time to provide this information as a service to homeworkers.