Debt Free UK advert misleads UK cardholders

By UK CreditCards.com

Debt Free UK misleads consumersA debt firm's promise that it can help customers wipe out their credit card debts is misleading, a consumer watchdog group announced yesterday.

The Advertising Standards Authority (ASA) said that promotional material released by Debt Free UK misrepresented the "likelihood" of legal challenges from its customers succeeding. According to the original advert, credit card agreements signed by customers before April 2007 "could be completely unenforceable" and that Debt Free UK's solicitors could get the balances written off as a consequence.

This referred to a potential legal loophole contained in the Consumer Credit Act. However, the ASA said that in reality the chances of having debts wiped out were less convincing than the advert had suggested.

The watchdog also said that Debt Free UK had not made clear enough the fact that its customers would be charged two separate fees, one for the debt management firm and one for its solicitors.ADNFCR-2308-ID-19225378-ADNFCR

Published: 19 June 2009