Another claims management company, Cartel Client Review, are being investigated by the Ministry of Justice, following reports that their advertised debt management claims are misleading.
Ministry of Justice investigates misleading claims management companies
The company’s alleged misleading claims were highlighted following an investigation by the BBC’s Money Box programme, where it was reported that customers who had paid hundreds or thousands of pounds to write off debts within 6 to 12 months were still waiting in limbo two years later.
The company uses phrases such as: “You may have a claim to have your outstanding credit card debt completely written off!” in its advertising, however firm evidence of such claims being successful remains in doubt.
Today, a spokesperson for the Ministry of Justice’s Claims Management Regulator said: “The Claims Management Regulator is investigating Cartel Client Review Ltd. and associated businesses.
“We are not able to comment on the specific issues we are investigating as to do so could jeopardise the progress and outcome of these investigations.”
Consumer groups have targeted claims management companies (which attempt to exploit loopholes in lenders’ small print to write off debts), as they have come under fire for their misleading advertising and huge upfront fees.
In an interview for The Times newspaper online, the chief executive of consumer group “Which?”, Peter Vicary-Smith, advised people to avoid claims management companies and recommended people who are struggling with debt management problems to seek free debt advice or to speak directly to lenders for debt help.
A spokesperson for Cartel blamed poor reporting from “a certain radio programme” for prompting the investigation by the Ministry of Justice.
Reputable debt advice organisations have also spoken out about the misleading claims of some claims management companies.
Ivan Cooper, Chairman at debt management specialists Chiltern, said: “Some of the most vulnerable people in society are being lured in with false or misleading advertising claims from some claims management companies, which is outrageous.
“Reputable debt advice organisations, like Hamilton Locke, The Debt People or Chiltern, recommend seeking impartial debt help before agreeing to any debt solution.”
cartel is disgraceful. i paid them £700 in aug 2009 to date i have heard nothing i have rung them e,mailed them wrote to them and nothing. it is disgusting
I’ve heard bad stories about Cartel as well.