The City regulator has clamped down on debt firms after finding some were potentially pushing vulnerable customers towards insolvency in order to earn higher fees.
The Financial Conduct Authority said some firms appeared to have manipulated peoples income and spending and encouraged them to seek individual voluntary arrangements (IVAs), which can ultimately lead to bankruptcy.
As a result of the review, the FCA wrote to five firms identifying significant concerns over their practices. These five companies have now stopped providing regulated debt advice until further notice, and the watchdog used its formal powers to remove another companys permission to give advice.
The clampdown involves so-called debt packager firms, which seek out peopl…
Read the full article at: https://www.theguardian.com/business/2021/jul/20/city-watchdog-clamps-down-on-debt-firms-over-quality-of-advice
