The OFT has released updated guidance on the standards it expects from debt management firms or firms offering credit repair services. The guidance incorporates previous versions including much of what was included in the consultation in June 2011.
The overall theme of the guidance if for firms to be transparent in how they conduct business with consumers. Making sure consumers have all the information available to them to make an informed choice. Examples have been provided within the guidance of poor practices which would result in your licence being revoked.
This guidance builds on a compliance review in this sector which identified problems with both marketing and the quality of advice given. This review resulted in warnings to 129 debt management firms and following this review 87 of those firms have left the market though choice or due to enforcement action.
The complete guidance can be found here.
The OFT recommend a 3rd party review for debt management firms, and consider it good business practice to have annual reviews or routine checks. If you are unsure if your firm is meeting the requirements and require an audit or to set up routine checks including file checks, call monitoring and mystery shopping then please contact us now for a no obligation quote.