The FCA says that some unregulated firms collect people’s details, through cold calling or online adverts, sometimes impersonating debt advice charities or debt collectors, and pass this information on to firms offering debt solutions that you pay for.
A quick search online will throw up lots of businesses offering ways to clear your debt, not all of which are trustworthy, according to charities.
Warning signs of unscrupulous firms include pressure tactics, such as repeated contact, often in messages and on the phone, pushing people to agree to a debt solution, the FCA says.
Some people have been encouraged to change financial details on lenders’ paperwork, or are “coached” in ways to respond.
Sometimes people are steered towards a…