You are here: Home - Uncategorized -

Debt firms told to drop ‘misleading’ ads

Written by:

Three firms that set up individual voluntary arrangements (IVAs) for people have been told to drop advertisements that make exaggerated claims for their services.

The Advertising Standards Authority (ASA) ruled against radio and TV advertisements for Accuma, Money Debt and W3 Credit Solutions which claimed that people could write off 75%-80% of their debts.

The ASA ruled that this was actually not the case with most of these firms’ customers and ordered that the ads were dropped as they were “misleading”. In future, any advertising would have to refer to a more realistic level of debt write-off that people could expect.

The decision was welcomed by consumer champion Citizens Advice. A spokesperson said: “Citizens Advice has seen cases of people being persuaded to take out IVAs when these are not appropriate, often with disastrous results.

Earlier this year the Office of Fair Trading wrote to 17 IVA firms warning them that the claims they were making were misleading and threatening to withdraw their licences to operate as businesses.

There is also increasing regulatory examination of the industry, as the number of IVA companies has multiplied in recent years because of the steep rise in people getting into serious debt and seeking solutions to it.


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
EDITOR’S BLOG: Licence to print money

The banks have come in for a lot of stick in the media lately and, quite honestly, you can see...