OFT gets tough with debt market

Doorstep lenders and debt management firms are being targeted by the OFT in a new clampdown.

The OFT is preparing to announce that it has revoked the consumer credit licences of several debt management companies, with a further 30 surrendering their licences voluntarily.

This action follows a report in September 2010, warning 129 debt management firms they would lose their licences unless they took immediate action.

Doorstep lenders are also being tackled, with more than 50 firms receiving warning letters concerning their practices.

This action has taken place after more than 50% of those who applied to renew a 'home collected credit licence' last year fell short of expectations on providing correct information and documentation.

Original article courtesy of Credit Today.

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