The wrong people to take advantage of in a recession

April 23, 2009 – 6:53 pm – No Comment

Recently there have been a lot of debt management scams going around the internet. A few have been so nasty and widespread that they have been featured on news magazine shows like Dateline NBC and CBS’s 60 Minutes.

This problem is not unique to the United States:

The United Kingdom Ministry of Justice released a statement saying that debt management business have been warned not to use misleading advertising any more. Some of the statements that have been considered to be misleading include:

“80% of credit agreements are unenforceable!”
“A positive outcome is guaranteed!”
“We have a 100% success rate!”
“We’ll get your credit cards written off within 6 weeks!”

Of course those are fraudulent and misleading claims. No one can reduce all their credit cards in 6 weeks if they have a seriously bad debt to income ratio.

This has obviously been a problem for some time, in 2006 Debt Free Direct appealed to the Advertising Standards Agency to try to stop the misleading claims that were being made by advertisements from competitors about IVAs and other debt management solutions.

Source:
Debt Free Direct