A debt management firm has warned that the reputation of its industry is being put at risk by companies offering to wipe out credit card debt.
There has been further criticism for debt management companies which claim to be able to wipe out customers' credit card debts.
A number of firms have emerged which advertise that they can clear outstanding balances from before April 2007, claiming that all credit card debt made before this time is unenforceable. The companies suggest that they can write off consumers' debts in a few weeks.
However, a number of bodies - including the Ministry of Justice and the Office of Fair Trading - have said that these claims are misleading and have warned consumers to be wary of such firms. Additionally, the Solicitors Regulation Authority has said it will investigate law practices which have taken on claims from these firms.
Now a debt advice firm has said that these dubious practices risk tarnishing the reputation of the wider sector.
"It is extremely worrying that disreputable practice could pull down the reputation of our industry as a whole" said Kevin Still, director of EuroDebt. "However, it is encouraging that at least the trade bodies that regulate organisations are coming down hard on infringements."
He added: "We are strongly advising any clients who are contacted by claims management companies to read the press releases on the Ministry of Justice or Office of Fair Trading websites before selecting a licensed provider."
