Warning Over Debts "Automated Callers"

Consumer groups or firms are forcing people to take out Individual Voluntary Arrangements (IVAs) which are a controversial alternative to bankruptcy.

The Information Commissioner's Office (ICO) reported that they had a large number of complaints regarding automated phone calls and they are trying their best to find out the culprit.

The ICO says the calls belong to "government debt initiatives" or "debt reduction schemes".

Some talk contains "little known government loophole" to clear the debts. Messages generally ask the recipient to press five for more information. Consumer groups are worried about the calls as they are coming from the companies to sell IVAs.

According to National Debtline and the Consumer Credit Counseling, though these may be a good solution for some people but are equally unsuitable for most of the other debtors.

Such claims were made by various companies in the year 2007 that were later on directed to withdraw their adverts for IVAs. The Office of Fair Trading decided that the claims were not appropriate because in most of the cases IVAs are not the ideal solution for the people suffering from debt issues.

Firms are not allowed to make automated phone calls unless they have prior consent, reported under the EU Privacy and Electronic Communications Regulations of 2003.

Becky Boden-Wilks from National Debtline said the charith has helped people who have been selling IVAs illegally. She also added that “people are desperately jumped onto the first lifeline only offered by other.”

In January 2008, the government has set up a new rule-the IVA Protocol- which was hoped to stop the illegal selling of IVAs.

The new way of selling it through automated calls raised the concern of the people that the wrong people are still involved to take out IVAs.

This news provided by Info About Loans

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