Firms Get Warning on Misleading Business Names from OFT
Firms have received warning from regulators to avoid their licenses for using misleading business names. The Office of fair trading (OFT) is authorized to stop customers who misled from the business words like helpline. Such business trends are particularly used by the firms who sell financial services or debt advice. Such companies represent themselves as charities or federal agencies.
OFT is working against misleading debt agencies and the warning is part of the same. OFT spokesman has said here those questionable business names were changed after informal discussion between regulator and business. In some occasions, OFT also refused applications formally where a business person wishes to use misleading business names. The regulator said that commercial firms are using misleading business names which could mislead people seeking help for charitable, federal, free, or impartial assistance. Regulated wanted to prevent such name for benefit of general person. Business names like cheap loans or that which claim no interest or lowest price in trading name will be challenged.
According to past reports of December 2010, OFT has refused application of Baker Evans Limited who wishes to use bankruptcy helpline and Insolvency helpline. Another report released in October 2011 says that OFT has stopped money advice direct limited to use its existing trading name UK insolvency helpline.
OFT has issued its warning against 129 debt management firms to change the way of trading. Debt experts from other leading firms have also supported the decision taken by regulator and said it a sensible tightening that seems to be deliberately exploited by the unscrupulous business. Threats given to financial firms on using misleading business names will be helpful to consumers in seeking right help from appropriate place. Trading firms cannot use misleading names and those who are using the names will need to cancel that. This helps the debtors to find right step.