Experts have warned that money management firms are misleading consumers by claiming that credit card debt can be written off my exploiting loopholes in the law.

Many companies are now claiming that clauses in the paperwork for credit cards are in breach of the Consumer Credit Act and this means that the contracts are unenforceable and the debt can therefore be wiped out.

Consumers have been warned that although this has been true with some credit card debt cases, this does not apply to the majority of people. Clients often have to pay a large fee up-front to these debt management companies, only to find out that they are unable to wipe their credit card debt out and are therefore left even further in debt and out of pocket.

There is so much concern of the way that some of these debt management firms are operating that the Ministry of Justice, Financial Services Authority (FSA) and the Solicitors Regulation Authority have already met to discuss ways to tighten up the rules in the hope of clamping down on firms who are out to make a fast buck at the expense of consumers who are already struggling to cope with their level of credit card debt.

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