Consumers struggling with mounting bills and missed credit card payments face additional financial risks from misleading debt relief services, the UK’s Financial Conduct Authority (FCA) has warned. The regulator urged people seeking help to use free, impartial advice and verify providers’ credentials before agreeing to paid solutions that could increase their financial burden.
The Bank of England reported that more people were falling behind on credit card repayments as household finances came under pressure from rising bills. Lenders also told the central bank they expected unpaid credit card debts to increase further during the autumn, potentially driving greater demand for debt advice.
Financial difficulties can make…