OFT Crackdown on Debt Management Leads Generators

As part of the OFT’s attempts to clean up the UK debt management industry, companies that provide debt management leads must now ensure that they have a consumer credit license containing the ‘debt counseling’ category. This is also applicable to anyone who acts as an introducer to debt solutions firms such as mortgage brokers, loan brokers, IFA’s, finance professionals etc.
The requirement to be appropriately licensed also applies to off-shore call centers that generate leads for UK-based debt management companies. By offering a service to UK consumers, lead generating companies need a UK consumer credit license covering the relevant debt counseling category, even though their company is based on foreign shores.
If a company is operating websites to generate leads, then all domain names must be registered and included on their consumer credit license. Not only that, but the OFT may refuse to grant a license or revoke a license if the domain names are in any way deceiving to consumers – for example if the domain names are similar to charities or fee-free providers, or if they imply that debt can be ‘written off’ or not need to be paid back at all.
The OFT is keen to clampdown on ‘copycat’ websites that sound similar to free advice agencies such as Citizens Advice, the Consumer Credit Counseling Service, the Money Advice Trust and Advice UK because these can be particularly confusing for consumers who may not notice the difference. Companies operating such websites have been described as ‘unethical’ by some observers in the industry.
The OFT has already started taking action against companies that have, in their opinion, flouted the rules. Earlier this year, the lead generation firm Money Advice Direct Ltd had to face questions from the OFT regarding its website ‘UK Insolvency Helpline’. MADL were informed that they needed to make it clearer that they were not a fee-free or charity service, and that they made money by selling on the referrals to debt management companies.


The reason for the OFT’s action is because they want debt help firms to be more transparent in their advertising so that consumers can make clearer, informed choices about who to approach for debt advice. They have also stated that it’s important that consumers understand who they are dealing with and that they can clearly distinguish between the debt solution provider and the lead generator.
Most debt management companies in the UK fully support the actions being undertaken by the OFT to clean up the industry to ensure that customers are treated fairly. They have made it clear that they will simply not tolerate ‘cowboys’ in the industry and that non-compliance with the rules could result in a £50,000 fine and the revocation of consumer credit license.
The clear message to all professionals who generate debt management leads such as mortgage brokers, loan brokers and such like is: get compliant, get the ‘debt counseling’ category added to your consumer credit license, and operate compliantly within the rules – or face the wrath of the OFT.

UKMS Introducers work with hundreds of Loan Brokers across the UK who offer their clients personal loans, unsecured loans, secured loans, bad credit loans, payday loans etc. All loan brokers are welcome to get benefited from UKMS debt management referrals.

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What You Need To Know About Debt Settlement

Let's face it, the financial recession has forced many Americans into positions that they don't necessarily deserve to be in. With financial hardships setting in, many consumers have to make decisions of which bill they are going to pay with this paycheck this week and which bills they won't be paying. Living through financial hardship has lead many consumers into the thought of using a debt settlement program. But, is this the right option?

Well, depending on the severity of your financial hardship this may or may not be the best option for you. It is up to people to decide what will be best. However, I will go over the debt settlement process and some other options that consumers may have.

The first step in a debt settlement process is contacting a professional. There are thousands of debt settlement companies nationwide. However, it is important to do your research before contacting anyone. Look for good companies with great reputations to help you! Once people have found a company they are willing to work with they will need to call that company.
The representative of the debt settlement company will need to know your total amount of debt and will create a payment plan that Americans can afford. Once the payment plan is created and the Americans agree the process starts. The debt settlement company sends a letter to the charge card companies letting them know that they will be working with the debts and they are working on obtaining a settlement.
\This process will last several months and in some cases can last several years. During which time, people will be paying the debt settlement company but the debt settlement company will not be paying the banks until they have one complete lump sum! This lack of payment can have a detrimental affect on consumer credit scores.

Once the debt settlement company has saved enough of your payments to offer the bank a settlement, they will offer pennies on the dollar and start the negotiations process. Because the banks haven't received a penny for months or years, they are apt to take a lower amount than what is owed because they think if they don't they will get nothing. At this point a settlement will be negotiated and paid.

Although at this point, the people have no credit card debt left, they also have no ability to obtain a loan. The debt settlement process would have affected the consumer FICO scores so much, they would have to pay cash for everything.

Another option Americans have is calling the banks and letting them know that they are facing a financial hardship. Believe it or not, many of these banks are willing to assist consumers with fixed interest reductions to as low as 0%! All it really takes is a simple phone call to the charge card issuers in most cases to get a decent level of relief!

This article was written by Joshua Rodriguez and is brought to you by:

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Debt Solutions

Are you struggling to make ends meet? Has a sudden change in circumstances affected your financial situation? We can help.
As a licensed professional Debt Management Company, Gemstone Financial Management can provide you with practical advice and support on a range of debt solutions. We can advise you and assist you, dealing with your creditors on your behalf.
We will draw up a Debt Management Plan which combines all your unsecured debts into one manageable monthly payment that will pay off your debts to your creditors as part of an agreed repayment programme. One of our team of dedicated and professional account managers will work with you for the duration of your plan to find the most effective debt solutions to help you get your finances back on track.
If you can manage regular payments into your Debt Management Plan, we may be able to arrange concessions from your creditors such as a suspension or reduction of interest and relief from further charges, although such concessions are negotiated from case to case and cannot be guaranteed. This plan may mean that your repayment period is longer and that the total sum paid may be larger. It is important to understand that any delayed or missed payments to creditors, or failure to pay our plan setup fee, may result in your accounts going further into arrears.


Another one of the debt solutions we can offer advice on is the Individual Voluntary Arrangement (IVA). This is a legally binding agreement with your creditors to pay back a percentage of your debts over a set period of time (usually five, or sometimes six, years). A licensed Insolvency Practitioner will assess your circumstances and formalise the agreement which can sometimes require the disposal of some personal assets. After living expenses, the remainder of your income is paid to the insolvency practitioner, who will deduct a fee and then distribute payments to your creditors. Home owners may be required to remortgage their property in the fourth year in order to release equity to their creditors. The initial cost of an IVA is usually the equivalent of 5 months' payments, with an ongoing cost of around £1,200 per annum, as agreed with your creditors. However, you will not need to paythese in addition to your normal monthly payments.
Getting an IVA is not guaranteed, as creditors holding at least 75% of your debt by value must agree to, or not vote against, the IVA. Once the IVA is agreed, creditors cannot add fees or charges to your debt and will not chase you for any further payments. And once the IVA is complete, any remaining debt is written off. Before entering into an IVA you should be sure that you can make the payments, as if an IVA fails the Insolvency Practitioner may have to file for your bankruptcy. We can provide access to market leading Insolvency Practitionerswho can guide you through the IVA process. All costs will be covered by your monthly payments.
Call us today on 0800 112 4313

Gemstone Financial Management Specialists in debt management solutions, debt consolidation, debt solutions , debt help and bankruptcy advice. Call now on 0800 112 4313

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Debt Consolidation

Finding it hard to keep track of multiple debts and creditors? Stung by late payment charges and mounting interest? Wish you could just pay one simple, regular, payment that you can reasonably afford? Debt consolidation may be right for you.
Debt Consolidation is the process of taking out one large loan to pay off all your existing debt. This means that you will have one monthly payment to make, to one creditor. In addition to simplifying your financial life debt consolidation can mean that you can get a lower interest rate on your new loan than the rates attached to your existing debt (for example, the high rates of interest on credit cards). Furthermore, Gemstone Financial Management has experience of successfully renegotiating clients’ payment terms, wining concessions from creditors such as freezing mounting interest and charges.
One of the main ways to get a lower rate of interest on your consolidation loan is through being a home-owner with a good level of equity in your home. This would allow you to get a loan ‘secured’ against the value of your home. However, it is important to understand that by doing this you might put your home at risk if you fail to keep up the payments on your secured debt consolidation loan. You should be certain that you have the ability to make and maintain payments before taking out such a loan. You should also consider that there may be penalties for paying off your other debts early, that this may make the repayment period longer and the total sum larger, and that taking out such a loan may affect your ability to discharge debts in bankruptcy.


If you are considering taking out a consolidation loan, you could benefit from speaking to a professional debt adviser before making any decisions. Consolidation is only one option for people seeking to manage and optimise their finances and debt. At Gemstone Financial Management we offer a range of financial services, and our experienced staff can devise solutions to suit the interests of you, the customer, in managing your finances or finding your way out of debt.
As suppliers of a range of financial services, Gemstone can advise you on a variety of strategies for dealing with financial issues. Based in the West Midlands, Gemstone is a company founded and managed by industry professionals, with a team of staff with a wealth of relevant experience in financial services. We pride ourselves on providing a service with integrity and professionalism. Indeed, we are one the founders and board members of the Debt Resolution Forum (DRF), the largest and arguably most respected trade body operating in the UK advice sector today, which represents firms of debt advisers and solutions providers that voluntarily adhere to standards that go beyond the minimum regulatory requirements. In short, it sets the standards for others to follow.

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Debt Collection Melbourne – Can You Afford To Do Without It?

In these times of economic uncertainty, businesses in Australia face the ever increasing prospect of a overdue accounts and even worse, the complete default of any payment. No business can afford to have its cash flow disrupted in this way and for those who are, the results may have a potentially devastating effect on the business.

Debt Collection Melbourne may, for such businesses, prove the most effective way of preventing of such default by carrying out debt recovery on behalf of these companies. Debt Collection Melbourne is not only an expert at recovering debt, but is also able to offer invaluable advice on how to avoid such difficulties arising in the first place by using their credit management services.
When approached by a prospective new customer, Debt Collection Melbourne will carry out such investigations as to enable you to decide if it would be economically viable to do business with the customer. They will check and verify your potential customers bona fides; determine their previous financial history, particularly if they have a bad record of payment; ascertain whether there has been any record of previous financial litigation, all of which will enable you to have a complete overall financial picture of your potential customer, before starting to do business.


In this respect, it is vital that all your potential new customers are made fully aware of your Terms and Conditions of Trade before you begin starting any business with them. Debt Collection Melbourne will ensure that your Terms and Conditions are specific to your business and will offer you the appropriate protection under such legislations as the Fair Trading Act, the Commonwealth Trade Practices Act and the Privacy Act.
They will also ensure that your Terms and Conditions provide adequate protection in respect of title, warranty conditions, returns, defects and cancellations. Clauses relating to the recovery of collection costs and interest due on late payments, will leave your new client in no doubt as to the consequences of default.
Debt Collection Melbourne, by providing credit management services, will help reduce your exposure to a late payment risk and may well forestall many problems you might otherwise face in regards to defaulting customers. Such services can considerably reduce your business costs, whilst at the same time adding value to your business.
Customers who fail to settle their accounts on time and renege on payment are the scourge of any business. Bad debts harm any goodwill between you and your customers which may have been built up over many years.
Despite taking all precautions possible, there will be instances where customers may still default on payment. Debt Collection Melbourne will first assess whether it is financially viable to pursue the debt and then focus on recovering overdue accounts as quickly and as cost effectively as possible. In practice, a "demand" letter is all that is required: legal action is generally a last resort!
Debt Collection Melbourne offer a comprehensive service of not only debt recovery but also credit management which, when combined together, provide your business with the ultimate in financial protection. The outlay is minimal for results that could well save your business from financial collapse.

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Debt Collection – An Imperative Daily Business Function

In recent years, the way in which we undertake our business operations has changed.  It is now more important than ever for businesses to keep on top of their finances, particularly in relation to cash flow.  In order to achieve this, it is essential that you ensure a positive cash flow is maintained by correctly managing your overdue accounts and debt collection.
If you offer credit facilities to certain customers, such as account holders, you must agree at the outset of such credit arrangements as to the expectations involved by both parties.  Written conditions that clearly state the terms of any account, such as the number of days credit that may be allowed until payment is due, along with the recovery procedures that will be adopted should the account not be paid within the agreed time scale, must be provided to each such customer.  You must make these Terms and Conditions part of your everyday business practise.
For example, if the normal procedure is to engage the services of Debt Collection companies after the account is 90 days overdue, then that is what should happen.  The longer you leave a debt outstanding, the harder it may be to ultimately collect and hence the longer that money is not within your business, paying for day-to-day operating costs or even to utilise for capital investment.


In this present economic climate, there is also the very real danger that if you leave a debt uncollected for any extended period of time, that debtor may become insolvent, dramatically reducing your chances of recouping your money.  It also greatly increases the time and cost involved in seeking some form of retribution.
The reasons given for not actively chasing overdue debts can range from the time that would be taken from completing other tasks, to the lack of knowledge regarding the actual legalities of debt collection.  There can also be the embarrassment factor when asking for money, especially when a long-term business relationship is involved.
This is not an issue to be overlooked or to become complacent about.  You have to keep in mind that debt collection is an important daily business function and one that may eventually have a resounding impact on the very survival of your business.
If you find that, for whatever reason, debt collection is not being correctly managed within your business, there is help available.  Debt Collection companies are able to work with your organisation to introduce credit management services, which in turn can be tailored to suit the individual requirements of your business in relation to debt collection.  These may include drafting and issuing debt collection letters, actual recovery of the debts and even instigating legal proceedings, should this be required.
As a professional, third party company, they have the knowledge, expertise and resources to actively and persistently pursue payment of your overdue accounts without damaging your business relationships.  By engaging such Debt Collection companies, you are retaining professionals to do what they do best, thus freeing you up to do what you do best – namely running and building your business.

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A Professional Debt Recovery Letter Can Save You!

Customers who fail to settle their accounts on time and renege on payment are the scourge of any business. Attempts to recover these bad debts are both time-consuming and expensive. Bad debts harm any goodwill between you and your customers which may have been built up over many years, leaving that "never again" feeling.
A professional debt recovery letter can save you from all of that.
Debt recovery services provide a simple, cost efficient means of minimising the risk of reduced cash flow to your business. Often, the mere fact that you have employed a reputable debt recovery service to act on your behalf, may well be sufficient to encourage a defaulter to settle his account without the need for any further action. Remember, such customers are also less likely to default on payments in the future.
Debt recovery can be a long and complicated process. However, often all it takes is sending a debt recovery letter to persuade your customer to settle his account. Indeed statistics show that written demands result in a satisfactory outcome in over 60% of cases. With such a success rate, the "demand" letter is clearly a most effective way to recover outstanding debts thus precluding the need for further, more expensive action.
However, professionaldebt recovery services offer much more than just a simple debt collection service. As well as sending out debt recovery letters and then recovering overdue accounts on your behalf, they will offer advice at all stages during your relationship with your customers, that may well reduce the risks to you caused by bad cash flow. Adopting their expert advice can create significant savings for your business both financially and in improved staff morale with the reduction of pressure on your account manager, whose stress level will benefit from the increased cash flow.


When you are approached by a potential new customer seeking credit, your debt recovery service will be able to determine the credit history of this customer and therefore decided their creditworthiness in respect of your business.
From the information provided by the debt recovery service, you will be able to see if the customer has a history of late payments, bankruptcy or insolvency proceedings or indeed has any default judgements marked against them.
This service will also establish beyond doubt the correct legal identity of your potential customer, something businesses often overlook and which can severely hamper the debt recovery process.
A professional debt recovery service will review your existing credit management practices and in effect, ensure that they are "fit for purpose". They can, for example: –

• ensure that your printed Terms and Conditions of Trade are adequate and legal
• a strict control is placed on the limit of credit allowed to anyone customer
• pre-determined agreed days of credit are strictly adhered to
• penalties for late payment of account are clearly defined

Chasing the bad debts does not make you money and it certainly does not improve your cash flow! Let a debt recovery service take over this burden for you. Not only does a debt recovery service provide a most cost effective way of retrieving what you are owed, thus improving your cash flow but perhaps, more important, a debt recovery service may well reduce the risk of default in the first place.

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