Birmingham Trading Standards has obtained an interim Enforcement Order against ‘debt sale’ company Momentum Network Ltd, trading as Credit Card Killer, and its owners, Mr and Mrs Basil Rankine.
The Order, granted in Birmingham County Court, prevents Momentum Network Ltd from engaging in the unfair commercial practice of ‘debt sale’ whereby consumers are offered the opportunity to ‘sell’ their consumer credit debts without the consent of the original creditor and making misleading claims that they can, for example, make consumers ‘debt free in 2 weeks by buying their debt for £1’.
It also prevents them from carrying on ancillary credit business as defined in the Consumer Credit Act 1974.
This is an interim Order obtained under the Enterprise Act 2002 and will remain in place until 21 April 2011 or until a further order is made. Sanctions for breaching such an Order include being held in contempt of court, imprisonment or a fine.
Birmingham Trading Standards obtained the Order following an Illegal Money Lending Team investigation which revealed that the company’s activities were causing significant detriment to vulnerable consumers. It has been estimated that customers of Momentum have paid over £1 million in up front fees for a ‘service’ which the OFT believes to be a scam.
The OFT warns consumers not to deal with companies, or agents working on their behalf, that claim to be able to buy debts without the consent of the lender, as this is not legally possible. Businesses that suggest otherwise are making clearly misleading claims.
BestAdvice.net editor Kevin Rose<a href="http://www.independent.co.uk/money/loans-credit/transfer-scams-hit-the-hardup-and-desperate-1721377.html"> drew attention to the practise of ‘debt sale/transfer’ firms</a> in June last year in The Independent.