The OFT has revoked the consumer credit licences of four businesses after they targeted consumers with misleading unsolicited mailings claiming they may have been mis-sold an Individual Voluntary Arrangement (IVA).
The mailings sent suggested that bankruptcy may be a better option for consumers, when this may not have been the case. Consumers accepting the advertised services would have had to pay additional fees to switch to a different debt solution that may not have been in their best interests.
As such, the poor quality advice and misleading nature of the mailings breached the OFT’s Debt Management Guidance.
Bankruptcy Limited (BL), Intl Marketing Limited (IML), UK Bankruptcy Limited (UKB) and UK Mortgage Link Limited (UKML) operated mainly out of the Dorset area.
Some were linked to potentially misleading trading names such as ‘The IVA Council’, ‘IVA Review Board’ and ‘IVA Watchdog’. The businesses were associated with each other in various ways, including through certain common directors.
BL and IML appealed against the OFT’s decisions. The revocations of their licences took final effect when IML’s appeal was struck out by the appeal Tribunal in March 2011 and BL withdrew its appeal in March 2011.
David Fisher, director of the OFT’s Consumer Credit Group, said: “Companies must not use misleading mailings or give advice that they know may not be in the interests of borrowers. Where the OFT has evidence that companies have breached its guidance, it will use its powers to stop them from doing so again.”
