Debt companies warned over misleading adverts
Posted in Debt News, on Friday, April 13th, 2007Three leading debt advisory companies have been warned over their ‘misleading’ adverts, and told by the Advertising Standards Authority (ASA) that they should not repeat the ads.
In promoting the use of IVAs (individual voluntary arrangements), Accuma, Money Debt and Credit, and W3 Debt Solutions claimed that customers could see their debts reduced by 75% to 80%, when in fact very few people entering into an IVA would achieve this.
The ASA instructed the companies to feature more realistic levels of debt reduction in any future advertising.
The warnings came after a complaint by rival debt management firm Debt Free Direct.
Previously, the Office of Fair Trading had written to 17 IVA companies warning that misleading and exaggerated claims could result in the withdrawal of credit licences.
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November 22nd, 2007 at 1:31 am
I think i know what ads are mentioned here - they are very slimy adverts.
To illustrate just how bad they are, i remember the costs being shown on one (probably as a result of ASA action), and to borrow £25,000 costs roughly £43,000. The combination of low monthly repayments and with intest rates as high as 12% APR this basically makes one of these loands a miniture morgage.
Steer well clear.
January 16th, 2008 at 11:10 am
Disgusted that companies think they can get away with very misleading adverts as you mentioned in your article.
February 7th, 2008 at 10:19 am
thanks for the info!
Some of these debt ads that are being aired today do seem too good to be true!