FCA takes action against debt packager firms

An FCA review of the practices of debt packager firms identified concerns that some debt packager firms appear to have manipulated consumers’ income and expenditure to meet the criteria for an IVA or PTD; used persuasive language to promote these products without explaining the risks involved fully; and provided advice that did not accurately reflect their conversations with consumers or information that consumers had given.

Following the review, five firms have stopped providing regulated debt advice until further notice and the FCA has stopped another firm from providing regulated advice.

The FCA has also published correspondence between Sheldon Mills and Dean Beale, CEO of the Insolvency Service setting out how the 2 organisations are approaching these issues and working together to protect consumers who need debt advice and ensuring co-ordinated regulation across the two organisations..

Source: FCA