How to avoid getting stung if you miss credit card payments
People are increasingly falling behind on credit card repayments, so here's the best way to get debt advice.
Key points
- The Financial Conduct Authority warns that unregulated firms are collecting people's details through cold calls and online adverts and passing them to paid debt solution providers.
- Free, impartial debt advice is available from debt charities and on the government-backed Moneyhelper website.
- Warning signs of unscrupulous firms include pressure tactics such as repeated contact by message and phone.
Lenders have told the Bank of England that they expect the number of unpaid credit card debts to keep rising this autumn, which could mean more people seeking advice on dealing with debt.
The Financial Conduct Authority (FCA) is warning consumers about traps when looking for debt help, saying some unregulated firms collect people's details through cold calling or online adverts and pass them to firms offering paid-for debt solutions.
Where to get free advice
Impartial, authorised debt advice is free of charge, and can be found on the government-backed Moneyhelper website. Consumers can also check whether a firm offering debt help is authorised by the regulator, the FCA, and cross-check the authorisation details with the FCA's Firm Checker.
Anyone unhappy with an authorised firm can complain and, if still not satisfied, take the case to the independent Financial Ombudsman Service.
Anyone struggling with debt deserves advice that puts their interests first.
— Alison Walters, director of consumer finance at the FCA
Warning signs to watch for
According to the FCA, warning signs of unscrupulous firms include pressure tactics such as repeated contact, often in messages and on the phone, pushing people to agree to a debt solution. Some people have been encouraged to change financial details on lenders' paperwork or are "coached" in ways to respond.
The FCA says some unregulated firms impersonate debt advice charities or debt collectors. It advises people to ask who they are talking to and check whether the details match the firm's official details.
