Warning against credit advice companies
Thursday 2nd April 2009
Trading Standards are warning residents to be on their guard against companies carrying out unsolicited phonecalls and claiming to be able to write off credit agreements consumers have entered.
The companies are claiming that there is a loophole in Consumer Credit legislation for agreements signed before April 2007 and that they are able to use this loophole to render credit agreements unenforceable. In order to use the service, consumers are asked to pay a fee upfront which can be as much as £1000. It is claimed that this money is refundable at the end of the process. A non-refundable deposit of £50 is also required.
Lindsay McNeil, a Trading Standards Officer with Stirling & Clackmannanshire Councils said: "The decision as to whether or not a debt can be written off can only be made by a Court of Law. Trading Standards advise that there are better ways of obtaining credit and debt advice."
She added: "Advice on credit documentation can be obtained from Stirling & Clackmannanshire Councils Trading Standards Service by telephoning 01786 432170, e mailing email@example.com or in person at Municipal Buildings, 8-10 Corn Exchange Road, Stirling FK8 2HU."
If consumers have ongoing debt problems free advice is available from Citizens Advice, Cameronian Street, Stirling or Drysdale Street, Alloa.
Stirling Council residents can obtain free advice from the Money Advice Service by telephoning 01786 442460 while Clackmannanshire Council residents can access their Money Advice Service by telephoning 01259 452512.