Companies that provide guidance for those with money problems are to be banned from receiving referral fees from debt solution providers.
The Financial Conduct Authority (FCA) said the new rules for debt packagers, which are regulated providers of advice, would save consumers money in “unnecessary fees” and improve guidance for those struggling.
There have been concerns that companies are incentivised to recommend debt management options which make them money – rather than what is in an indebted customer’s best interests.
The FCA highlighted the case of a homeless person who could have had their debt frozen and then discharged after 12 months by paying a one-off 90 fee.
But instead, they were recommended an alternative arrangement whic…
Read the full article at: https://news.sky.com/story/debt-advice-firms-banned-from-receiving-referral-fees-12894770