Lenders told the Bank they expect unpaid credit card debts to keep climbing this autumn. That could send more people searching for debt advice, and the search comes with traps.
Social media and internet search pages are full of supposed quick-fix debt solutions. Cold calls and WhatsApp messages promise help too. Those offers may come with upfront fees, unrealistic claims about writing off debt, and pressure to make a quick decision. The Financial Conduct Authority, the regulator known as the FCA, says some unregulated firms gather people's details through cold calls or online adverts.
The safest route is free. Debt charities offer advice at no charge, and the government-backed Moneyhelper website lists providers. If a firm pitches you instead, check that the FCA authorises it, and cross-check the details it gives you against the FCA's register. Unhappy with an authorised firm? You can complain, then take it to the independent Financial Ombudsman Service.
Alison Walters, the FCA's director of consumer finance, said: "Anyone struggling with debt deserves advice that puts their interests first." She added: "Free, impartial debt advice is available to everyone, and no one should be pressured or misled into paying for a debt solution that may not be right for them."
Some of the callers offering debt help may be posing as the very charities that give it away free.