The OFT (Office of Fair Trading) is warning people not to become a victim of companies claiming they can help you become debt free by ‘buying’ or ’selling on’ your debts.

A debt cannot be sold on without the lender’s permission and so debt and claims management companies who suggest otherwise are misleading people.

Equally brokers who introduce people to debt and claims management companies who they claim can ‘buy’ or ’sell on’ debts are also misleading people.

Under the law, if a consumer ’sells’ on their debt, they are then liable for both the original debt repayment obligations and any money they paid for the false debt service.

They will also be subject to negative credit scoring with the original debt.

Such services are therefore clearly not a way to become debt free

Any companies offering claims management services are regulated by the Ministry of Justice.

Companies that are in the credit/debt business also need to be licensed by the OFT.

Firms offering these debt scams often do not have the necessary consumer credit licences and the OFT is working to prosecute those who are trading illegally.

OFT Director of Credit, Ray Watson, said ‘Like most scams, when something looks too good to be true, it usually is, and this is certainly the case here. You cannot simply sell on your debt and its liabilities, and businesses that make misleading claims to the contrary are just trying to take advantage of consumer’ distress.’

Debt problems don’t usually go away by themselves and if you have concerns about the level of debt you have it may be time to contact your creditors to agree a debt repayment plan.

You can get advice from your local Citizens Advice Bureau.

There are also reputable debt management companies who can assist and advise on action to take to get your debt problems back under control.