Watchdog warns loan firms not to name themselves like charities

LOAN firms have been warned not to use misleading names that could make consumers think they are charities.

The Office of Fair Trading called on the industry to ensure trading names made it clear they were commercial enterprises and not charities or government bodies.

The call comes after the watchdog refused an application for a commercial firm to use the trading names The Bankruptcy Helpline and The Insolvency Helpline.

It said the names could potentially mislead consumers into thinking they were dealing with an impartial government or non-commercial organisation.

Ray Watson, the OFT's director of consumer credit, said: "Consumers must be able to distinguish commercial debt management companies from free charitable or government services."