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The OFT has revoked the consumer credit licence of Matthew St John Crossley,
trading as the Debt Advisory Company.
Through his websites, Mr Crossley advertised 'free independent and impartial
debt advice' to consumers with serious debt problems.
The sites have now been closed down.
MrCrossley is understood to have advised consumers that re-mortgaging would be
the best way to solve their debt problems.
The consumers then released up to £30,000 equity in their homes and sent this to
Mr Crossley so that he could repay creditors on their behalf.
The OFT found that he had failed to return monies to consumers on request,
failed to make payments to any or all of the consumers' creditors, and charged
large initial and ongoing fees that appeared to be disproportionate to the work
carried out.
In addition, Crossley was found to have made misleading statements and gave
misleading advice about the services he provided in order to induce potential
clients to enter into a contract.
Ray Watson, OFT Director for Consumer Credit, commented: "This is one of the
most serious cases involving debt management services we have encountered.
"We have evidence that consumers parted with tens of thousands of pounds and
suffered increased financial hardship as a result of Mr St John Crossley's
activities.
"Following their dealings with Mr St John Crossley one consumer was forced to
sell his home, another was bankrupted and another found himself facing
bankruptcy and the loss of his home.
Source: Credit
Control Journal
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