Charities warn over adverts promising ‘quick fixes’ for debt problems

People seeking debt help are being urged by charities to beware of adverts promising “quick fixes” which could lead to their problems becoming worse.

StepChange, Citizens Advice and the Money Advice Trust say they have seen increasing numbers of people burdened by cost-of-living pressures.

They warned that some adverts may mimic their branding, to give the impression that the person seeking help is dealing with a charity.

The charities are concerned that some people may be pushed towards debt solutions that are not right for their individual needs.

During the first half of 2023, StepChange recorded a 17% rise in the number of new clients year on year.

The charities are urging people to be cautious when looking online for help with problem debt.

Richard Lane, director of external affairs at StepChange Debt Charity, said adverts targeting specific demographics, such as help for women in debt, may not always be what they seem.

He said adverts may be run by lead generators, who collect personal details in order to sell them on to a commercial firm for a fee.

Mr Lane said: “This can lead to someone being sold a debt solution that might not be appropriate for them, and may worsen their finances in the long run.”

Matthew Upton, acting executive director of policy and advocacy at Citizens Advice, said: “People seeking debt help should be able to trust the advice they get. Instead, they are being bombarded with adverts promising quick-fix solutions and huge debt write-offs.

“The reality is that these tactics are deceptive and lure people into fee-paying debt solutions like IVAs (individual voluntary arrangements), which they so often can’t afford.

“When you’re in debt, receiving the right advice is vital, because getting it wrong can make things much worse.”

IVAs can be suitable in certain circumstances, but if they are sold inappropriately and fail, this can be harmful for someone’s finances, the charities said.

Jane Tully, director of external affairs and partnerships at the Money Advice Trust, the charity that runs National Debtline and Business Debtline, said: “Too often we see examples of misleading adverts targeting people in financial difficulty, in some cases posing as free debt advice providers.

“The firms behind these often push people towards debt options that may not be suitable for their circumstances. This can make a difficult financial situation worse, so it is important to make sure you are getting debt advice from a trusted source.”

StepChange has a checklist for anyone struggling with their finances and looking for debt advice:

1. Search online for the “FCA register” and check the firm is on it. If they are, read the small print. Some companies have limits on giving full debt advice. Remember that local councils can still provide trustworthy debt advice, despite not being on the FCA (Financial Conduct Authority) register.

2. Claims such as “Government-backed” or “quick and easy debt write-off” could be a red flag. Good debt advice gives you choices.

3. Some adverts mimic charities. Check the website address, logo and contact details. The debt charities said they believe that good debt advice is free.

4. Some companies sell details such as phone numbers to make money. Ask who they are sharing information with and why.