Citizens Advice responds to FCA announcing a ban on debt packagers from receiving referral fees
Citizens Advice has responded to the Financial Conduct Authority announcing a ban on debt packagers from receiving referral fees.
Matthew Upton, Acting Executive Director of Advocacy and Policy at Citizens Advice, said:
“Banning referral fees is a big step towards tackling the way some firms prey on and profit from people struggling with debt.
“Inaccurate or misleading advice from providers promoting Individual Voluntary Agreements can push people further into hardship and further away from a lasting solution to their problems.
“As more people spiral into debt, we need the whole industry to be held to the same standards when giving debt advice. The government needs to act to bring all pre-IVA advice under the regulation of the FCA, so that people can be sure it’s the right solution for them.”
Notes to editors
- Citizens Advice is made up of the national charity Citizens Advice; the network of independent local Citizens Advice charities across England and Wales; the Citizens Advice consumer service; and the Witness Service.
- Our network of charities offers impartial advice online, over the phone, and in person, for free.
- Citizens Advice helped 2.55 million people face to face, over the phone, by email and webchat in 2021-22. And we had 40.6 million visits to our website. For full service statistics see our monthly publication Advice trends.
- Citizens Advice service staff are supported by more than 18,500 trained volunteers, working at over 2,500 service outlets across England and Wales.
- You can get consumer advice from the Citizens Advice consumer service on 0808 223 1133 or 0808 223 1144 for Welsh language speakers.