The trading watchdog said it was concerned that false and misleading statements on Money Direct Advice’s website encouraged people to believe that it was a not-for profit organisation providing debt management solutions.
The company, which traded as the UK Insolvency Helpline, was a lead generation firm, making money by introducing struggling borrowers to commercial firms which set up debt management plans and individual voluntary arrangements.
The OFT has called for the company to make sure its commercial status is clear and that it does not give the impression through any of its advertising that is a charity or a public funded body.
Instead, it must ensure that advertising of its debt management services is consistent with the standards set out in the OFT’s Debt Management Guidance.
It must also make clear to consumers that it does not provide or administer debt solutions, or imply that its service is impartial or independent.
The OFT’s director of consumer credit, Ray Watson, said: ‘It is important that consumers seeking help for debt problems know who they are dealing with and whether the company is providing an actual service or is simply a lead generator.
“We would advise anyone in financial difficulty to seek free debt advice or check whether the company they are in touch with is a member of the Debt Management Standards Association (DEMSA), which has an OFT accredited code,” he explained.
