Office of Fair Trading shuts misleading websites

Unscrupulous companies are cashing in on people’s money worries by setting up websites that pose as official or charity advice services.

The Office of Fair Trading has ordered 11 companies to close their sites immediately. It said that the lookalike debt advice websites implied that the companies had affiliations to organisations such as Citizens Advice, Advice UK, National Debtline or the Consumer Credit Counselling Service.

Some of the website names also implied that the companies had some official status or sanction from the Government.

Parts of the content of these lookalike websites are often copied from legitimate sites offering free advice, despite the companies involved charging fees. Some companies were also trading without a credit licence, said the OFT.

This licence is a mandatory requirement for companies offering debt counselling under the Consumer Credit Act 1974.

"Most of these companies are offering a legitimate debt advice service but we are concerned that people are unwittingly being misled. Instead of free advice they are signing up for commercial services," a representative for the OFT said.

Now the organisation is warning consumers to be extra vigilant when searching for debt advice online; especially if using terms such as 'citizens advice' or 'government advice'.

It said the sites to be wary of use similar or slightly amended domain names to official free debt advice organisations.

The Government watchdog also warned people to be careful when dealing with traders who are unlicensed. These companies are unregulated and although it is a criminal offence to trade in debt advice without a licence from the OFT, getting redress may not be possible.

The OFT said it was pleased with the response from the companies. But it was also working with internet service providers to ensure that the websites are taken down promptly.

Ray Watson, OFT director for consumer credit, said: "The OFT will take action against businesses that use lookalike websites to mislead consumers into believing they are dealing with established charitable or not-for-profit organisations."

Consumers can check whether a business holds an appropriate consumer credit licence by searching the consumer credit register on the OFT's site.

Some genuine websites of not-for-profit debt advice organisations include:
• Citizens Advice Bureau (www.citizensadvice.org.uk)
• Advice UK (www.adviceuk.org.uk/)
• National Debtline (www.nationaldebtline.co.uk)
• Consumer Credit Counselling Service (www.cccs.co.uk/)
• Parents, Pennies and Pounds (www.moneystuff.co.uk)