Debt management companies – advertising rules
Any fee-charging debt management company in the UK promoting their services as free is breaking strict advertising rules introduced on 1st September 2010.
In the past, some organisations have been guilty of misleading the public, claiming to offer "free" help and advice in their advertising, even though a typical plan from a fee-charging debt management company could cost around £5,000.
The advertising code states that:
- Debt management companies are not allowed to advertise a product or service as "free", "without charge" or similar if the consumer has to pay anything other than unavoidable charges, such as response and delivery costs.
- Financial products must be presented in a way that can be easily understood by the audience, rather than take advantage of consumers’ inexperience.
Debt management companies must also comply with rules set by the Financial Conduct Authority (FCA).
Make sure you never pay for debt help. We provide free, impartial debt help and advice with no hidden charges. Other organisations offering free debt advice include:
If you’re struggling with debts, use our online tool StepChange Debt Remedy, which provides you with the most appropriate solution to your problem.
Who uses our help?
Over-indebtedness largely results from a change in financial circumstances, caused by reduced income or overuse of credit, although relationship problems and changes in employment status are also common causes.
Because of this, our clients are from all walks of life and we are able to offer help and advice to those on high incomes as well as those on low ones.
Has your debt management firm closed down?
In recent months, several debt management firms have closed, some because they’ve been unable to abide by rules set out by the Financial Conduct Authority (FCA).
If the debt management company you've chosen to help you with your debts has closed down or gone into administration, we can help. Please visit our closed debt management company page for more information.