ASA continues claims crackdown

Another claims management company has been rapped by the Advertising Standards Authority this week for trying to mislead borrowers about how it was able to help them wriggle out of their debts.

UK Logical, a Yorkshire-based company, invited people who wanted to “Legally Clear your Credit Cards & Loans” to get in touch with it. But the ASA ruled on Wednesday that the ads would “mislead” readers about their chances of being able to write off their debt. It also slammed the firm for not making clear that anyone responding to the ad would be charged a £50 admin fee.

The ASA said the offending ad “was likely to be understood by readers to mean that UK Logical had an 80 per cent and above success rate at clearing customers’ credit card debts and loans. Because we had not seen evidence demonstrating that that was the case, we considered the ad was likely to mislead readers about the likelihood of their debts being written off.”

The ad also claimed there were “no hidden charges”, but the ASA found it did not make it clear that UK Logical charged fees to conduct initial reviews of credit agreements, and, although those were refunded in the event of an unsuccessful audit, a £50 charge per agreement was still applied. As such, it said, “the claim |‘No hidden charges’ was misleading”.

There seem to be hundreds of these companies preying on hard-up people who will leap at the chance to ease their financial woes. The ASA has already ruled against two other firms for misleading ads this year, Debt Free UK last month, and Cartel Client Review in January.

Some believe many firms are simply “claims farming” to pick up the fees they will earn, whether or not they take up anyone’s case.

The claims companies’ legal argument is based around the concept of

unenforceable loan agreements which is built on the fact that some loan contracts written before 2007 may not be properly worded under the terms of the 1974 Consumer Credit Act.

Finding evidence that anyone has actually managed to have their debt written off under this principle is difficult, although some banks appear to have backed down rather than face legal fees when they have been taken to court about the matter.

That doesn’t necessarily mean that people have the right to try and get their own loan or credit card written off. Indeed, there’s no question of anyone actually being disadvantaged by being mis-sold a loan or credit card. It seems the argument that these firms use to encourage people to pay them a fee is an untested legal loophole.

Lloyds Banking Group was behind the latest complaint to the ASA but anyone can complain about misleading financial ads. For information, go to: www.asa.org.uk/asa/how_to_complain.

Sport
Adnan Januzaj and Gareth Bale
footballManchester United set to loan out Januzaj to make room for Bale - if a move for the Welshman firms up
News
Young Winstone: His ‘tough-guy’ image is a misconception
people
Arts and Entertainment
Ellie Levenson’s The Election book demystifies politics for children
bookNew children's book primes the next generation for politics
News
Outspoken: Alexander Fury, John Rentoul, Ellen E Jones and Katy Guest
newsFrom the Scottish referendum to the Ice Bucket Challenge, our writers voice their opinions
PROMOTED VIDEO
Arts and Entertainment
Pharrell Williams' “Happy” was the most searched-for song lyric of 2014
musicThe power of song never greater, according to our internet searches
News
i100
Sport
Tim Sherwood raises his hand after the 1-0 victory over Stoke
footballFormer Tottenham boss leads list of candidates to replace Neil Warnock
Arts and Entertainment
L to R: Hawkeye (Jeremy Renner), Captain America (Chris Evans) & Black Widow (Scarlett Johansson) in Avengers Assemble
film
News
Nigel Farage celebrates with a pint after early local election results in the Hoy and Helmet pub in South Benfleet in Essex
peopleHe has shaped British politics 'for good or ill'
Arts and Entertainment
Sink the Pink's 2013 New Year's Eve party
musicFour of Britain's top DJs give their verdict on how to party into 2015
Sport
Yaya Sanogo, Mats Hummels, Troy Deeney and Adnan Januzaj
footballMost Premier League sides are after a striker, but here's a full run down of the ins and outs that could happen over the next month
News
Nigel Farage: 'I don't know anybody in politics as poor as we are'
i100
Voices
Strictly Come Dancing was watched by 6.9m viewers
voicesIt has been hard to form generally accepted cultural standards since the middle of the 19th century – and the disintegration is only going to accelerate, says DJ Taylor
Arts and Entertainment
Roffey says: 'All of us carry shame and taboo around about our sexuality. But I was determined not to let shame stop me writing my memoir.'
books
News
i100
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Selby Jennings: VP/SVP Credit Quant- NY- Investment Bank

    Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...

    Selby Jennings: Quantitative Research | Equity | New York

    Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...

    Selby Jennings: SVP Model Validation

    Not specified: Selby Jennings: SVP Model Validation This top tiered investment...

    Selby Jennings: Oil Operations

    Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...

    Day In a Page

    War with Isis: The West needs more than a White Knight

    The West needs more than a White Knight

    Despite billions spent on weapons, the US has not been able to counter Isis's gruesome tactics, says Patrick Cockburn
    Return to Helmand: Private Davey Graham recalls the day he was shot by the Taliban

    'The day I was shot by the Taliban'

    Private Davey Graham was shot five times during an ambush in 2007 - it was the first, controversial photograph to show the dangers our soldiers faced in Helmand province
    Revealed: the best and worst airlines for delays

    Revealed: the best and worst airlines for delays

    Many flyers are failing to claim compensation to which they are entitled, a new survey has found
    The stories that defined 2014: From the Scottish independence referendum to the Ice Bucket Challenge, our writers voice their opinions

    The stories that defined 2014

    From the Scottish independence referendum to the Ice Bucket Challenge, our writers voice their opinions
    Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations

    Disaster looming? Now you know where to head...

    Which British city has become the first to be awarded special 'resilience' status by the UN?
    Finally, a diet that works: Californian pastor's wildly popular Daniel Plan has seen his congregation greatly reduced

    Finally, a diet that works

    Californian pastor's wildly popular Daniel Plan has seen his congregation greatly reduced
    Say it with... lyrics: The power of song was never greater, according to our internet searches

    Say it with... lyrics

    The power of song was never greater, according to our internet searches
    Professor Danielle George: On a mission to bring back the art of 'thinkering'

    The joys of 'thinkering'

    Professor Danielle George on why we have to nurture tomorrow's scientists today
    Introducing my anti-heroes of 2014

    Introducing my anti-heroes of 2014

    Their outrageousness and originality makes the world a bit more interesting, says Ellen E Jones
    DJ Taylor: Good taste? It's all a matter of timing...

    Good taste? It's all a matter of timing...

    It has been hard to form generally accepted cultural standards since the middle of the 19th century – and the disintegration is only going to accelerate, says DJ Taylor
    Bill Granger recipes: Our chef's breakfasts will revitalise you in time for the New Year

    Bill Granger's healthy breakfasts

    Our chef's healthy recipes are perfect if you've overindulged during the festive season
    Transfer guide: From Arsenal to West Ham - what does your club need in the January transfer window?

    Who does your club need in the transfer window?

    Most Premier League sides are after a striker, but here's a full run down of the ins and outs that could happen over the next month
    The Last Word: From aliens at FA to yak’s milk in the Tour, here’s to 2015

    Michael Calvin's Last Word

    From aliens at FA to yak’s milk in the Tour, here’s to 2015