At least 62 debt management advice firms have had their licences cancelled in the past year after an Office of Fair Trading (OFT) review into the industry.
Speaking at a debt management conference today, a spokesman for the consumer standards agency revealed it has taken action against 12 more firms since January, pushing the total to 62.
Some of the fee-charging firms that had their licences cancelled had been criticised for misleading customers about their charges and for giving incompetent advice.
An OFT spokesman said: “We’ve taken the decision to cancel the licences of 62 debt advice firms because the companies had a lack of integrity and were unfit to run the business.
“We’ll continue to take tough enforcement action against companies that don’t follow the guidance we lay out.”
The OFT issued warnings to 129 firms last September after it uncovered "widespread" problems in the sector.
Of those firms issued with warnings, 13 have been given revocation orders, 44 have surrendered their licences, including four firms that had been subject to revocation action and five have been refused licences.
In February, the OFT ordered Money Advice Direct Limited (MADL), a firm that introduces struggling borrowers to debt management companies, to stop using misleading advertising that presents it as a source of free help.
To search for companies that have been issued with a warning from the OFT, click here
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