- 23
- May
The Advertising Standards Authority (ASA) has announced it is to investigate a debt management firm over concerns it is misleading borrowers.
Speaking on BBC Radio 4′s You and Yours programme, director general of the ASA Christopher Graham reported that Debt Free Direct is claiming that those struggling with their personal loan repayments could be able to wipe off portions of their debt for ‘free’.
However, a complainant to the authority wondered if this could actually be substantiated.
He said: "[It is misleading] to say it won’t cost you a penny when not all your money is going to repay debts and in the event of the whole scheme collapsing, because you can’t afford to pay the ongoing payments, then you will find charges of between £8,000 and £9,000 typically are in that pot."
Mr Graham added that although Debt Free Direct had complained to the ASA about other debt firms who have carried out similar tactics "they get very precious when we criticise them".
Meanwhile, Jim Hodgkins from CreditExpert suggested that a "serious lack of understanding" has caused borrowers to take a poor attitude to their finances and struggle to make repayments on personal Loans and other forms of borrowing.
Interfinancial providing you with breaking finance news.
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