Solicitors investigated on debt firm claims

by Gill Montia

Story link: Solicitors investigated on debt firm claims

The Solicitors’ Regulation Authority (SRA) is investigating ten law firms that are suspected of undertaking business from claims and debt management companies whose advertisements mislead consumers into thinking that their debts can easily be written off.

The body, which aims to protect the public by ensuring that solicitors meet high standards, warned in February that solicitors bringing claims based on false or exaggerated statements were at risk of disciplinary action and prosecution.

According to SRA chief executive, Antony Townsend, misleading advertisements about consumer credit agreements are becoming more common, with some publicity giving the impression that almost all loan or credit card agreements in place before April 2007 are unenforceable.

Mr Townsend cautions that “many credit agreements do meet the legal requirements and, therefore, cannot easily be challenged as unenforceable”.

Solicitors working for firms operating in the area of debt management should therefore check the advertisements run by such businesses, or risk facing the Solicitors Disciplinary Tribunal.