The Advertising Standards Authority Rules Against Debt Free Direct

ClearDebt is pleased to note that the Advertising Standards Authority (ASA) has ruled as misleading the claim by Debt Free Direct Group plc (DFD) that its IVAs “won’t cost you a penny” because it implied that there were no costs associated with an IVA.
We’d never say that an IVA is free (look here fees statement and you’ll see just how much ClearDebt charges). We are completely upfront about what an IVA costs and we believe we are the lowest cost IVA provider in the market.

If you are in debt and want an IVA, you shouldn’t actually worry too much about the fees – because each IVA company deducts its fees from the agreed monthly debt repayment they calculate you can afford. But, most IVA companies deduct their fees in the first months of the arrangement and, if the IVA fails, then you may find you’ve paid very little debt off (and, of course, the more the company is charging, the longer it is before your debt repayment starts).

DFD even unsuccessfully attempted court action to prevent publication of the ASA’s ruling.

Speaking of the ruling, the ASA’s Director General, Christopher Graham, said: “Transparency is key to our effectiveness as a regulator and this judgement serves as a warning to others who would try and prevent publication of our rulings. In recent months we have investigated six complaints by Debt Free Direct about its competitors’ advertising. Each of those investigations resulted in a published ‘upheld’ adjudication, yet Debt Free Direct sought to stifle publication of a ruling against its own ad.”

DFD has, so far, not joined the industry’s new regulatory body, the Debt Resolution Forum, one of whose standards will be that members must abide by the ASA’s findings.