The action has been taken after the OFT and the Information Commissioner's Office received complaints from consumers that they had been cold-called either without prior consent or despite registering with the Telephone Preference Service (TPS). The OFT also found that most of the information given to consumers was potentially misleading or inaccurate, or missed out vital facts about the purpose of the call and the identity of the caller, for example:
some calls misled consumers into believing that they were one of the 'few chosen individuals' contacted as part of a government scheme to help wipe out consumer debt;
some recipients were transferred to a commercial debt management business on the pretext of talking to a not-for-profit debt adviser; and
once referred to a different business, consumers were often not told that there was a fee payable for both the initial advice and the debt solutions offered.
The businesses warned today may also have broken the law by pestering individuals who had not given their consent to be called and/or who had registered to the TPS.
Nigel Cates, Deputy Director of Consumer Credit, said: 'Taking advantage of people who are suffering distress through debt problems is completely unacceptable and this practice of illegal or misleading cold-calling for debt management services must cease immediately. The current economic climate means that it is vitally important vulnerable consumers are protected. We will not hesitate to take action against any business that uses misleading calls to advertise debt management services.'
Mick Gorrill, Assistant Information Commissioner at the ICO, said: 'Under the Privacy and Electronic Communications Regulations (PECR), organisations should not make automated marketing calls without the prior consent of the subscriber. The ICO has received a large number of complaints about automated marketing calls promoting debt management schemes. We have worked closely with the OFT on this issue and welcome the action taken.'
Citizens Advice Director of Public Policy Teresa Perchard added:"This is absolutely the kind of prompt and decisive action needed to tackle rogues taking advantage of the downturn."
These cold calls are intrusive and disconcerting and could lead consumers to believe the company has personal information about them when they do not.The agents making the calls often give the impression they are linked to a free, independent debt advice charity such as Citizens Advice by, for example, quoting our research about the number of people who have debts as a reason for calling the customer.
Anyone getting unsolicited calls from companies they don't know or who they haven't asked to call them, should discontinue the call and register with the Telephone Preference Service."
