OFT raps debt firm over misleading ads
Debt management firm Carefree Debt Solutions has been rapped by the Office of Fair Trading (OFT) for making misleading claims in its advertising.
The OFT ordered the firm to cease promoting claims that consumers will be debt free within a set period of time without explaining the adverse effect this would have on their credit rating.
Carefree have also been barred from making claims, or implying, that their services are free if they are not and must detail all fees prominently in advertising.
Further breaches concerned false claims over guaranteed favourable outcomes and failure to stipulate that debt rescheduling can make people worse off in the long run.
The company was also instructed to explain all of the advantages and disadvantages of the debt solutions it offers when giving advice.
An OFT report is due this summer following a review of how well debt management firms are complying with minimum standards in online advertising.