Justice for misleading marketing claims


Bridget Prentice, Justice Minister, has warned claims management businesses about misleading marketing claims.

The Ministry of Justice have issued new guidance in a bid to stop businesses misleading the public by issuing claims that they can arrange for unpaid loans, credit card debts or other consumer debts to be written off.

Anyone deemed to be making misleading statements will be told to stop or face enforcement action which may also lead to authorisations being taken away.

The guidance places particular emphasis on misleading statements in adverts and making dubious claims or leaving our important information which may breach consumer protection regulations.

Ray Watson, OFT Director of Consumer Credit said: "The OFT will not hesitate to take enforcement action against licensed claims management businesses who engage in unfair business practices by deliberately misleading vulnerable consumers about the services they offer."

"Businesses should also be aware that if they offer debt counselling or debt adjusting services without holding an appropriate licence, they will be committing a criminal offence and risk prosecution, and that any agreements they enter into with consumers whilst unlicensed may be unenforceable."

A copy of the Misleading Advertising Guidance can be downloaded here.

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