FCA right to tackle debt management firms, says Citizens Advice
Following the FCA’s decision not to authorise debt management firm PDHL, Citizens Advice has highlighted its evidence that some people using debt management firms find their debts barely reduce, despite making payments.
The national charity, which helps people with 1.5 million debt problems each year, is also highlighting how people don’t need to pay for debt advice.
Citizens Advice Chief Executive Gillian Guy said:
“Getting the right help around money and debt can transform people’s financial future.
“It is good news the FCA is clamping down on the debt management sector and making sure customers using these services have someone to turn to in order to sort out their money problems once and for all.
“Each year we help over 1,000 people who are experiencing problems with debt management firms including high fees and finding their debts barely reduce despite making regular payments. It is worth remembering that you don’t have to pay for debt advice and that there are free services available.”
The Money Advice Service is working with Citizens Advice to help make sure those affected by changes in the debt management industry can still get support to resolve their debts.
Notes to editors
- The Citizens Advice service comprises a network of local Citizens Advice, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
- The advice provided by the Citizens Advice service is free, independent, confidential and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
- To get advice online or find your local Citizens Advice in England and Wales, visit citizensadvice.org.uk
- You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers.
- Local Citizens Advice in England and Wales advised 2.5 million clients on 6.2 million problems in 2014/15. For full service statistics see our publication Advice trends.
- Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 2,500 service outlets across England and Wales.