The firms claimed the recipients may have been mis-sold Individual Voluntary Arrangements (IVA) and suggested bankruptcy may be a better option for them, breaching the OFT’s Debt Management Guidance.
Bankruptcy Limited (BL), Intl Marketing Limited (IML), UK Bankruptcy Limited and UK Mortgage Link Limited all operated mainly out of the Dorset area and were often linked to misleading trading names such as ‘The IVA Council’, ‘IVA Review Board’ and ‘IVA Watchdog’.
Consumers accepting the advertised services would have had to pay additional fees to switch to a different debt solution which may not have been in their best interests.
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.”
The bans came into effect in March after appeal attempts by BL and IML failed.
