Atlantic Financial Management Welcomes OFT Advice on 'Unenforceable Debt' Claims

Atlantic believes too many consumers are falling into more debt because of false promises by claims management companies

The Office of Fair Trading (OFT) has issued new advice to consumers, about their rights in relation to 'unenforceable debts'.

Atlantic Financial Management has welcomed this advice, with the debt solutions provider saying it has been concerned for some time about consumers falling into greater debt simply because they incorrectly believe that they can write off debts they think are 'unenforceable'.

" ...a plethora of Claims Management Companies have emerged over the last few years, offering to wipe out people's debts ..."

The new OFT Guidance makes clear that, should an agreement be 'unenforceable' because the lender has failed to provide the appropriate documentation under sections 77/78/79 of the Consumer Credit Act 1974, the consumer would still owe any outstanding monies up to that point.

Kevin Still, director of Atlantic, said: "The problem is, a plethora of Claims Management Companies have emerged over the last few years, offering to wipe out people's debts if they can prove they are 'unenforceable' because the correct processes haven't been followed or the agreement is unfair.

"... In the vast majority of instance the outstanding debt needs to be paid ..."

"Fortunately the Ministry of Justice (MoJ) and the OFT have taken firm action against many of these firms in relation to their misleading adverting and operating practices. In the vast majority of instance the outstanding debt needs to be paid and you should not ignore debt recovery action by the lender or their agent once you have received a copy of your credit agreement."

He added: "We are strongly advising any of our clients who are contacted by Claims Management Companies to be very careful about what they are being offered and promised. Much better is for them to seek assistance in managing the repayment of their debts. For example, on an Atlantic Financial Management Debt Management Plan (DMP) we can generally get interest and charges frozen on client debts as well as help them work out a manageable level of repayment to tackle the debts in the long-term."

To find out more about Atlantic Financial Management contact us or call 0845 0 30 30 30