The Financial Conduct Authority (FCA) says debt management firms must demonstrate they provide appropriate advice, do not charge unfair fees, and have adequate processes for handling client money when assessments for consumer credit authorisation start next month.Firms that provide services which pose a higher risk to consumers will be assessed first, including debt management firms, payday lenders and credit brokers.


Victoria Raffe, director of authorisations at the FCA, said:

“These firms are advising consumers who have often reached rock bottom, so it’s important that firms get it right. Many firms are falling well short of our expectations and they will need to raise their game if they want to continue operating.”..Read more here