Consumer finances are coming under heavy strain during a cost of living crisis hitting Britain, piling pressure on banks and others to rearrange loan repayment schedules.
Consumers who enter into “unsuitable” arrangements to repay a debt can face dire consequences by having to pay far more money back over a longer period, the Financial Conduct Authority said.
It has estimated that around 52,000 of the 1.7 million people who seek debt advice every year begin with a debt packager, a figure which has likely increased due to the cost of living crisis.
Debt packagers are regulated providers of debt advice, who refer indebted customers to debt solution providers – in return for a referral fee – which make formal arrangements to repay debt.
Read more at Reuters
