FCA ban on debt packager fees welcomed

Debt Justice welcomes the decision by the financial regulator to ban debt packager fees.

Debt packagers receive commission for referring people in debt to fee-charging ‘solution’ providers.

Referral fees therefore incentivise debt packagers to promote Individual Voluntary Agreements (IVAs) as a solution to people in debt, over other, often cheaper and more appropriate, solutions, such as Debt Relief Orders.

Eva Watkinson, Head of Campaigns at Debt Justice said:

“People in debt deserve protection from this predatory practice. The government now needs to take urgent action to ensure the personal insolvency landscape provides everyone that is heavily weighed down by debt a straightforward route to resetting their finances.”

For more information and any follow up questions contact Joe Cox on 07796884487.