Office of Fair Trading Investigates Debt Consolidation
The Office of Fair Trading is to further investigate the debt consolidation industry
12th March 2004
The Office of Fair Trading has completed an initial 8 month investigation into the Debt Consolidation industry, and is to make further enquiries after uncovering evidence of possible problems.
The OFT concluded that some lenders, including major high street names, may have been 'inappropriately' pushing debt consolidation loans to customers when they may not have been the wisest choice.
Also, lucrative Payment Protection Policies may have been promoted to customers who would not be likely to need them.
If further investigations uncover hard evidence, the OFT has left open the option of prosecution for offending lenders.
Debt consolidation is a means of reducing monthly repayments for those with multiple debts, and is often secured on the borrower's home.
Read More: Money Guardian
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More on Debt Consolidation: About Debt Consolidation (Article, 24/08/2005), £5bn Debt Consolidation Prediction (News, 30/01/2006), Debt Consolidation Top Reason for Loans (News, 02/02/2004) |
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