The FCA has raised concerns that consumers seeking help with debt are being steered towards fee-paying solutions that may not be suitable for their circumstances.
The regulator said some consumers were being subjected to high-pressure sales tactics, given misleading information or advised by firms that do not have the appropriate permissions.
It said consumers should be alert to firms pressuring them to agree to a debt solution quickly, particularly following an online enquiry or unexpected phone call.
Other red flags include being encouraged to alter income or expenditure details on an application or being “coached” on what to say, as well as being steered towards fee-charging solutions without being properly informed about…